Garment Exports of India

As per Directorate General of Commercial Intelligence and Statistics (DGCIS) data, the export of garments and clothing apparels has increased by 2% between 2014-15 and 2018-19.

In US dollars, the gross value of garment exports is between 16 to 17 billion USD.

However, these figures have still a large scope of improvement and the Indian Government is looking for means to increase the supplies to abroad.

What steps are been taken?

  • The Government has announced a Special Package for garments and made-ups. This offers rebates of State Levies (RoSL), labor law reforms, additional incentives under Amended Technology Upgradation Fund Scheme (ATUFS), enhanced duty drawback coverage and relaxation of Section 80JJAA of Income Tax Act.
  • The Rates under Merchandise Exports from India Scheme (MEIS) have been increased from 2% to 4%.
  • The Government is also providing assistance to exporters under the Market Access Initiative (MAI) Scheme.
  • The interest equalization rate for pre and post-shipment credit for exports by MSMEs of the textile sector has been enhanced from 3% to 5%.
  • The benefits of Interest Equalization Scheme will now also be given to merchant exporters. It was was earlier limited to only manufacturer exporters.

Competition to Indian Industry

The textile export industry of India faces major competition from our neighboring Bangladesh and Sri Lanka who not only have the advantage of giving a competitive manufacturing cost (when compared to our own) but also enjoy dutyfree access in major markets like the European Union. Bangladesh, in particular, has emerged as a clear favorite for foreign brands looking to outsource their textile manufacturing.



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