The top representative of the Tirupur Exporters Association (TEA) recently met the union Textile Minister Piyush Goyal and urged to address the Tirupur knitwear sector’s issues. The industry thanked Hon’ble Union Minister for the efforts taken continuously to conclude Free Trade Agreement with UK likely by end of this month and this FTA will be much helpful to Tiruppur Knitwear exports to record significant growth as the UK Buyers are also awaiting for this agreement. The TEA urged MOT to addressed following points for the growth of Tiruppur Knitwear Exports Sector.
PRIME MINISTER MEGA INTEGRATED TEXTILE REGION AND APPAREL PARK (PM MITRA)
We would like to thank the Hon’ble Minister for allotment of Prime Minister Mega Integrated Textile Region and Apparel (PM MITRA) park to Tamil Nadu state and launched in Tamil Nadu on 22nd March 2023. As 50 exporting units in Tiruppur are interested to setup the factories in the park, we request to expedite the development of park for operationalizing the park and fulfil the intension of Central Government.
PRODUCTION LINKED INCENTIVE – 2.0 SCHEME
We request for announcement of Production Linked Incentive (PLI) 2.0 by fixing the threshold limit for Rs. 15 Crore investment and the sales turnover can be fixed at three times of the investment, considering the Knitwear Garments MSMEs in Tiruppur Cluster.
REQUIREMENT OF AN ALTERNATE SCHEME IN PLACE OF TUF SCHEME
The TUF Scheme has been one of the major factors for the growth of knitwear export sector to reach the current level, since the quality conscious Foreign buyers are placing orders only with those units having state of art technology machinery. In view of this, the announcement of an alternate scheme in place of TUF Scheme will go a long way for the growth of Textile Industry and Exports.
FREE TRADE AGREEMENT WITH UK, EU, EFTA, NEW ZEALAND AND GCC
We would like to thank the Hon’ble Union Minister for the efforts taken continuously to conclude Free Trade Agreement with UK likely by end of this month and we also request for early conclusion of FTA with European Union, EFTA, New Zealand and Gulf Cooperation Council.
IMPORT OF KNITTED FABRICS & GARMENTS FROM BANGLADESH
As the FTA is available with Bangladesh, the fabrics are imported from Bangladesh without Customs duty and the imports are getting increased month on month basis, which is directly affecting the local manufacturers. In last year, 2022-23 the total Knitted Fabrics imported to India increased to Rs. 264 Crore compared to Rs. 212 Crore recorded in 2021-2022, with a growth of 24.3%.
The garments are imported from Bangladesh without Customs duty and the concern is that in last year, 2022-23 the total Knitwear Garments imported to India increased to Rs. 2,489 Crore compared to Rs. 1,576 Crore recorded in 2021-2022, with a growth of 57.9%. As the imports are getting increased month on month basis, which is directly affecting the local manufacturers. We request to help for implementation of some mechanism by Central Government to restrict the import of Knitwear Fabrics and Knitwear Garments from Bangladesh.
INTEREST EQUALIZATION SCHEME
The Interest Equalization rates on Pre and Post Shipment Rupee Export Credit under the Scheme are now at 3% for MSME manufacturer exporters exporting under any HS lines, and 2% for non MSME manufacturer exporters. As the Interest rates are going up, we request to help for increasing the benefit of Interest Equalization Scheme to 5% for MSMEs and 3% for Non-MSMEs Garment exporters.
REQUISITION FOR ONE YEAR MORATORIUM FOR REPAYMENT OF THE PRINCIPAL AMOUNT AVAILED UNDER ECLGS
The MSMEs in Tiruppur Knitwear Sector had availed the 30% Credit as loan under Emergency Credit Line Guarantee Scheme (ECLGS) during the Covid period and as the repayment of Principal Amount have already started along with payment of Interest Subsidy. We request to provide One year moratorium for repayment of the Principal Amount, that will ease their financial burden and help to meet their statutory payments.
REQUISITION FOR EXTENSION OF ECLGS
ECLGS was extended till 31st March 2023 and we request for extension of the scheme till 31st March 2024 for the benefit of MSMEs to ease their financial commitments.
REQUISITION TO SUPPORT TIRUPUR TO BECOME A SUSTAINABLE CLUSTER
The world’s leading fashion brands increasingly committing to net zero targets and we are witnessing an upwards momentum for sustainability in the International fashion area. Circularity is becoming very important and all leading global retailers have set targets to reduce their carbon footprints and it needs immediate action. We request for financial support for the required implementation to achieve Tiruppur as a Sustainable Cluster.
We are confident that once the issues are addressed the result will help to bring back the Tirupur knitwear exports into normal trajectory, boost their exports and create more employment, particularly to women workers.