The Apparel Export Promotion Council (AEPC) has called on the government to extend fiscal support to the sector to boost exports. A delegation of AEPC, led by its Vice Chairman H K L Magu, met Commerce and Industry Minister Suresh Prabhu on the issue. The council apprised the minister about the major constraints being faced by apparel exporters, AEPC said in a statement today. "The issue of non-reimbursement of embedded taxes under rebate of state levies, drawback scheme is making the apparel industry non-competitive.
The council informed the minister about the impact of overvalued rupee on export growth," it said. It added that depreciation in the value of currencies of neighbouring countries like China, Bangladesh and Vietnam during the last six months have eroded the cost competitiveness of Indian apparel industry. "A strong rupee has significantly diluted the impact of the package of Rs 6,000 crore for apparel industry and in order to encourage exports, it is necessary that rupee is depreciated in a calibrated manner to a level where India's exports become competitive in the global market," it said. It has also raised the issue of timely refund of blocked GST.
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