TIRUPUR: Tirupur Exporters’ Association (TEA) has urged the Government
to come out with an alternative scheme with the same benefits of the
Merchandise Exports from India Scheme (MEIS) for the growth of the
readymade garments industry.
In its appeal to the Centre, TEA said that MEIS, a lifeline support given to exports including readymade garments, was removed from August 1, 2019 onwards due to more pressure coming from the WTO, further to a complaint lodged by the US with the WTO dispute settlement body. Actually the scheme (MEIS) was introduced for offsetting the infrastructural inefficiencies faced by exports of specified goods including readymade garments to provide a level playing field. It is a fact that the enhanced competitiveness is mainly needed to sustain in the global market.
When the exporting units are in a less competitive and disadvantageous position, the buyers obviously resort to competing countries and the concern is that if the buyers leave India and settle in a competing Country, it would be difficult to bring them back immediately. In view of this, sops are required for sustenance of the readymade garment (RMG) sector, said Raja M Shanmugham, President, TEA.
“We wish to point out that the removal of MEIS will crumble the business created over a period of time. Non-addressing of some of the core issues, including arresting infrastructure deficiency, signing of FTA with the EU, CEPA with Canada, CECA with Australia and bringing down the interest rates will further put pressure on the industry,” Shanmugham said in TEA’s letter to the Centre.
In its appeal to the Centre, TEA said that MEIS, a lifeline support given to exports including readymade garments, was removed from August 1, 2019 onwards due to more pressure coming from the WTO, further to a complaint lodged by the US with the WTO dispute settlement body. Actually the scheme (MEIS) was introduced for offsetting the infrastructural inefficiencies faced by exports of specified goods including readymade garments to provide a level playing field. It is a fact that the enhanced competitiveness is mainly needed to sustain in the global market.
When the exporting units are in a less competitive and disadvantageous position, the buyers obviously resort to competing countries and the concern is that if the buyers leave India and settle in a competing Country, it would be difficult to bring them back immediately. In view of this, sops are required for sustenance of the readymade garment (RMG) sector, said Raja M Shanmugham, President, TEA.
“We wish to point out that the removal of MEIS will crumble the business created over a period of time. Non-addressing of some of the core issues, including arresting infrastructure deficiency, signing of FTA with the EU, CEPA with Canada, CECA with Australia and bringing down the interest rates will further put pressure on the industry,” Shanmugham said in TEA’s letter to the Centre.
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