Apparel exporters have appealed to the Union Government to continue the Merchandise Exports from India Scheme (MEIS) for garment exports.

A. Sakthivel, vice-chairman of Apparel Export Promotion Council (AEPC), said there were reports that the government planned to stop the scheme. The MEIS provided 4 % support to the exporters.

The Council had written to all the Members of Parliament (MPs) from Tamil Nadu and requested them to take up the issue with the Prime Minister and the Finance Minister. The chairman and vice-chairman of AEPC also met 20 MPs, who were from different parts of the country, in New Delhi on August 5 and explained to them the benefits of MEIS for garment exports, why it should be continued, and the impact on the exports if the scheme was withdrawn.

A press release from AEPC said the MPs had assured them that they would take up with the government the need to continue MEIS.

Mr. Sakthivel added that apart from MEIS, he had discussed with the MPs the other issues that were affecting apparel exporters.

Another scheme, the Rebate of State Taxes and Levies, which included the embedded taxes, was yet to be implemented though the government had announced it before the elections. This was also taken up with the MPs, he said.

President of Tiruppur Exporters’ Association Raja M. Shanmugham said the Union Finance and MSME Ministers held a meeting in New Delhi on Tuesday to know from the stakeholders the issues that affect the industry.

There was no clarity on the MEIS and the guidelines for Rebate of State and Central Taxes and Levies was yet to be finalised. “I highlighted these issues at the meeting. Indian apparel exporters are at a disadvantage in the international market. If the MEIS is removed, the lifeline of the industry will be lost,” he said.

The industry was facing three major challenges - lack of infrastructure, high interest rates, and delay in India signing Free Trade Agreements.

Till these three issues were sorted out, schemes such as MEIS should be continued. Further, the main financial problems for the industry were because of compliance to new banking norms. The MSMEs should be insulated from the Basel III norms, he added.

Published On : 06-08-2019

Source : The Hindu