TIRUPUR: Chief minister Edappadi Ok Palaniswami has written to Prime Minister Narendra Modi urging the Central executive’s intervention to rejuvenate Tirupur knitwear cluster. Without directly citing that measures taken submit GST implementation have additionally performed a task in weakening the readymade garment (RMG) sector, Palaniswami sought after the centre to extend the rate of responsibility drawback and clear pending rebate on state levies (RoSL) dues of Rs 500 crore to be given to the cluster.
In the letter dated May 22, the CM mentioned, “In the last decade, countries like Bangladesh, Vietnam and Sri Lanka have overtaken India in RMG global market. Especially, the eastern neighbour Bangladesh has four times bigger market proportion than our country. Many of such countries have been enjoying different benefits available in the market. For circumstances, Sri Lanka was once accorded as generalised scheme of preferences (GSP) plus through the European Union, in order that the island nation may export apparels to EU countries without fee of import responsibility. Ethiopia, which is one of the rising textile production countries, has free trade get right of entry to with the United States. At the similar time, Indian attire exports to US are subjected to a levy of 11.40%.”
“Moreover, whilst Indian exporters are levied import responsibility on yarn used to produce clothes which are to be exported, countries together with Bangladesh, Sri Lanka and Ethiopia levy no such responsibility,” he discussed.
Without citing about implementation of GST, Palaniswami mentioned since July 1, 2017, RoSL is slashed from three.5% to one.7%, and likewise 0.21% of the provider tax element of drawback was once removed. Besides, responsibility drawback was once reduced from 7.5% to 2-2.5%.
The CM requested that “In order to cover all of these issues and provide competitive edge over other countries, the Central executive must build up responsibility drawback to 5%. And additionally the pending dues of RoSL, which has not been cleared since May 2017, entitled to be given to Tirupur cluster by myself touched round Rs 500 crore. So, it additionally must be cleared.”
Thanking the CM for forwarding their illustration, vice-chairman of the Apparel Export Promotion Council A Sakthivel informed TOI that “There shall be chances for coming into free trade agreement (FTA) with EU and likewise complete financial partnership agreement (CEPA) with Canada and Australia, in attire sector. The central executive must take fast steps for such agreements.”
Tirupur Exporters’ Association president Raja M Shanmugham mentioned, “With such sure measures coupled with unveiling of built-in Tamil Nadu textile policy, the rejuvenation of the textile sector in the state will grow to be possible.”
In the letter dated May 22, the CM mentioned, “In the last decade, countries like Bangladesh, Vietnam and Sri Lanka have overtaken India in RMG global market. Especially, the eastern neighbour Bangladesh has four times bigger market proportion than our country. Many of such countries have been enjoying different benefits available in the market. For circumstances, Sri Lanka was once accorded as generalised scheme of preferences (GSP) plus through the European Union, in order that the island nation may export apparels to EU countries without fee of import responsibility. Ethiopia, which is one of the rising textile production countries, has free trade get right of entry to with the United States. At the similar time, Indian attire exports to US are subjected to a levy of 11.40%.”
“Moreover, whilst Indian exporters are levied import responsibility on yarn used to produce clothes which are to be exported, countries together with Bangladesh, Sri Lanka and Ethiopia levy no such responsibility,” he discussed.
Without citing about implementation of GST, Palaniswami mentioned since July 1, 2017, RoSL is slashed from three.5% to one.7%, and likewise 0.21% of the provider tax element of drawback was once removed. Besides, responsibility drawback was once reduced from 7.5% to 2-2.5%.
The CM requested that “In order to cover all of these issues and provide competitive edge over other countries, the Central executive must build up responsibility drawback to 5%. And additionally the pending dues of RoSL, which has not been cleared since May 2017, entitled to be given to Tirupur cluster by myself touched round Rs 500 crore. So, it additionally must be cleared.”
Thanking the CM for forwarding their illustration, vice-chairman of the Apparel Export Promotion Council A Sakthivel informed TOI that “There shall be chances for coming into free trade agreement (FTA) with EU and likewise complete financial partnership agreement (CEPA) with Canada and Australia, in attire sector. The central executive must take fast steps for such agreements.”
Tirupur Exporters’ Association president Raja M Shanmugham mentioned, “With such sure measures coupled with unveiling of built-in Tamil Nadu textile policy, the rejuvenation of the textile sector in the state will grow to be possible.”
Help revive Tirupur knitwear cluster, EPS appeals to Narendra Modi
![Help revive Tirupur knitwear cluster, EPS appeals to Narendra Modi]()
Reviewed by Kailash
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May 25, 2018
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