To boost India's apparel exports from the current $15 billion to $30 billion, Praveen Chakravarty, Chairman, Professional Congress, has urged Finance Minister Nirmala Sitharaman to reduce import tariffs on synthetic fabrics.
In a letter titled ‘Proposals to Boost Garment Exports and Create One Crore New Jobs,’ Chakravarty emphasises, the existing 20 per cent tariff on synthetic fabrics significantly hinders India's ability to compete in global markets
The top five importing countries — America, Germany, Japan, France, and Britain — predominantly purchase synthetic garments, with 70 per cent of imports being synthetic and only 30 per cent made from natural fabrics, Chakravarty highlights in his letter. However, India's exports are currently more focused on natural fabrics, limiting its reach in these markets. To meet international demand, India needs to shift its focus toward synthetic garments, he opines.
To accelerate growth in the sector, Chakravarty advocates for the creation of a special collateral-free credit scheme, directly tied to export performance for textile and apparel manufacturers. Such a program would have a more immediate and substantial impact than the existing Production-Linked Incentive (PLI) scheme, he points out.
In his letter, Chakravarty also emphasises on the importance of free trade agreements (FTAs) with key regions, such as the European Union, United Kingdom, and America. Citing data from NITI Aayog, the letter estimates, every $1 billion in garment exports could generate 1.25 lakh direct jobs and five lakh indirect jobs, with 70 per cent of these roles benefiting women.
