Indian apparel industry has again urged the Government to support and provide package as the industry is currently undergoing one of its worst phases owing to COVID-19.
As per the leading apparel exporters, 75 per cent of Indian apparel exporters are now exposed to cancellation of orders and postponement of shipment. The uncertainty is expected to linger for at least next 2 months, impacting nearly US S 1 billion worth of shipments.
Around 13 million direct workers and their families will also get affected due to this, which will ultimately impact the entire economy.
Apparel Export Promotion Council (AEPC) has urged Prime Minister Narendra Modi for immediate financial stimulus package for the apparel sector.
Dr. A. Sakthivel, Chairman, AEPC, informed, “Indian apparel sector has been one of the worst-hit due to Coronavirus as it is deeply engaged with the global value chain. There are other issues also like severe cash flow crunch, rising inventories and shipment cancellations. So, we need urgent support from the Government.”
Enhancement of the existing limits for advances of exporters may be automatically enhanced by 25 per cent without insisting on additional collateral and minimum 6 months moratorium on payment of interest on all loans/facilities from banks.
Earlier, apparel exporters also requested for an ‘Amnesty Scheme’ to be introduced in Foreign Trade Policy, restoration of MEIS benefits that were retrospectively withdrawn for the sector from March 2019 and creation of a ‘Corpus Fund’ for exporting industry.