The Apparel Export Promotion Council (AEPC) has been constantly seeking an upward revision of duty drawback rates for garments for the past few months. In view of a proposal of duty drawback rate for 2014-15 expected to be submitted to the Indian Government next month, AEPC presented the data on domestic consumption and export of apparels to the Duty Draw Back Committee.
The present duty drawback rate for cotton garments, garments made from blended yarn and man-made fibres is 7.6 percent. AEPC delegation suggested that these rates be increased by another three to four percent, as there is an increase in price of dyes and chemicals. The upward revision of duty drawback rates would help the Indian apparel sector to better compete in the international market, AEPC said. India's apparel exports during April-May 2014-15 posted impressive 20 percent growth with US$ 2.81 billion, compared to the same period of previous financial year. During the period April-May 2013-14, India's apparel exports were to the tune of US$ 2.35 billion.
AEPC had earlier urged the Government of India to expedite conclusion of the India-EU FTA, as it has a huge potential to boost exports.
