‘Special Package’ of Rs. 6,000 crore for apparel exporters, which was recently announced by the Central Government of India, has begun to show its impact as almost 35 Indian apparel exporters have announced investment plans of Rs. 623 crore that will create employment opportunity for more than 30,000 people. Many other exporters are also ready with their investment plans but are waiting for the fine print of Special Package which is supposed to be out very soon as Sunaina Tomar, Joint Secretary – Exports, Ministry of Textiles (MoT) assured exporters during an event organized by Apparel Export Promotion Council (AEPC).
Many top apparel exporters of India were present at the event and thanked the MoT for this package. All of them appeared curious for fine print of Special Package as some of them do have apprehensions about the terms and conditions regarding incentives announced by the Government. Meanwhile, AEPC has assured MoT that it will be ready with its action plan to achieve the target of creating 1 crore new jobs along with investment of Rs. 74, 000 crore, which is expected from this package.
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Ashok Rajani, Chairman, AEPC indicated that the action plan will also include focus on HS Code-wise promotion of garments, to accelerate export growth rate in preferential markets and market diversification, facilitate input availability for enhancing competitiveness and speed to delivery, and a roadmap for publicity plan and review. He added, “We not only have to reach the target of US $ 30 billion, which the Government has set for us, but we also have to go ahead and exceed that target. With our strategies and reforms in place, I don’t think that this is going to be difficult.”
The garment exporters those who announced investments include names like Texport Industries (Rs. 100 crore/4,500 employment), Texport Syndicate (Rs. 80 crore/3,000 jobs) and Midas Touch Export (Rs. 75 crore/650 new workmen), and MAF Clothing (Rs. 35 crore/4,000 jobs).
For analysis of this package and complete details of all investment announcements, please see the upcoming July 1-15 issue of Apparel Online.
