AEPC

Bihar's Textile Policy Draws Big Names in Garment Industry

Prominent industrialists and exporters in the garments industry have lauded Bihar's Textile Policy, recognizing it as one of the best in the country.
Key leaders from Trendsetter International, Richa Global, Shahi Exports, Texport Industries, Pearl Global, Poppys, Kaytee Corporations, Jyothi Apparel, Neeti Clothing, Fashion Neats, and other major companies attended the Textiles Investors Meet in Patna, expressing their interest in investing in Bihar.
Several industrialists visited operational factories in Muzaffarpur to assess the facilities. The event was graced by Union Textiles Minister Shri Giriraj Singh, Bihar Deputy Chief Minister Shri Vijay Kumar Sinha, and Bihar Industry Minister Shri Nitish Mishra.
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Addressing the attendees, Union Textiles Minister Giriraj Singh encouraged them to consider Bihar as a hub for ready-made garment (RMG) manufacturing. He emphasized that the sector has the potential to generate significant employment, with an investment of ₹1 crore potentially creating 50 to 70 jobs.

Singh highlighted Bihar's strategic position as a gateway to the Northeast, which can further enhance employment opportunities. He also suggested that the state government adopt a revenue-sharing model for specific centers, developing one cluster at a time to its full potential.

Deputy Chief Minister Vijay Kumar Sinha praised the entrepreneurs' interest in Bihar, highlighting the state's rich cultural heritage and openness to investment. He expressed eagerness to welcome investments that can drive the state's economic growth.

Industry Minister Nitish Mishra touted Bihar's attractive policy incentives and "plug and play" facilities for investors, noting that worker efficiency would improve if they were closer to home. He thanked the RMG industrialists for their strong turnout and interest in Bihar.

AEPC Chairman Sudhir Sekhri noted that Bihar's garment exports grew by 58.6% in 2023-24, even as India's overall garment exports declined by 10.2% during the same period. Although Bihar's share in India's total apparel exports remains small, it has increased from 0.05% to 0.09%.

Sekhri urged industrialists to invest in Bihar, taking advantage of the state's supportive policies and business ecosystem. He also emphasized the importance of a domestic supply chain for realizing the ambitious 'Atmanirbhar Bharat Abhiyaan' launched by Prime Minister Narendra Modi.

Sekhri pointed out that many skilled and semi-skilled workers from Bihar are employed in major apparel hubs like Tirupur, Surat, Ahmedabad, Mumbai, and Chandigarh. Having these workers locally available in Bihar can reduce manufacturing costs. He also stressed the importance of timely disbursement of subsidies and incentives, along with single-window clearances, to ensure smooth operations and availability of working capital for SMEs.

The industrialists at the Textiles Investors Meet, organized by the Apparel Export Promotion Council (AEPC), praised Bihar's policy and efforts toward industrialization.

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ApparelIndustry

Apparel Industry Seeks Boost in Upcoming Budget

The Apparel Export Promotion Council (AEPC), a leading voice for India's garment exports, has outlined key demands for the upcoming Union Budget 2024.

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Focus on Policy Stability and Increased Competitiveness

AEPC Chairman, Sudhir Sekhri, emphasizes the need for long-term policies to provide stability and support the growth of garment exports. He highlights the apparel industry's potential to be a significant global player, given its commitment to quality and a complete value chain.

Top Budget Requests:

  • Enhanced Interest Equalization Scheme: AEPC proposes a 5% rate for all apparel exporters under the Interest Equalization Scheme for five years. This aims to boost the industry's competitiveness in the international market.
  • Simplified Imports for Trimmings and Embellishments: AEPC seeks to include all trimmings and embellishments under the Import of Goods at Concessional Rates of Duty Rules (IGCR Rules). They also request an extension of the timeframe for utilizing these imported materials to one year.
  • Duty-free Benefits for Courier Shipments: Currently, duty-free imports under IGCR apply only to cargo shipments. AEPC requests extending this benefit to courier mode shipments for trimmings and embellishments.
  • Reduced Customs Duty on Textile Machinery: To encourage technology upgradation, AEPC proposes a temporary zero-duty regime for high-end textile machinery imports for three years. This would be followed by increased tariffs to incentivize domestic manufacturing of such machinery.
  • Uniform GST Structure: AEPC calls for a uniform 5% GST rate across the entire textile and apparel value chain, for both man-made fibers (MMF) and cotton products. The current structure leads to an inverted duty burden, where taxes on inputs are higher than the finished product.
  • Support for Sustainable Practices: AEPC requests subsidized loans for garment manufacturers who use organic, locally sourced materials and invest in green technologies. Additionally, they propose incentives for implementing traceability initiatives in the raw material supply chain.
  • Other Measures: AEPC also seeks relocation compensation for companies moving to less developed areas, tax breaks for manufacturers adopting sustainable practices, and budgetary support for promoting "Made in India" apparel brands.

By implementing these recommendations, the apparel industry hopes to gain a competitive edge, create jobs, and contribute to India's socio-economic development.

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