Experts urge FM to slash synthetic fabric tariffs to boost apparel exports

Praveen Chakravarty, Chairman of the Professional Congress, has urged the Indian government to reduce import tariffs on synthetic fabrics to significantly boost the country's apparel exports. In a letter addressed to Finance Minister Nirmala Sitharaman and Chief Economic Advisor Anantha Nageswaran, Chakravarty highlighted the current 20 per cent tariff on synthetic fabrics is hindering India's competitiveness in the global apparel market.

The letter emphasizes that major apparel importing countries like the US, Germany, Japan, France, and Britain predominantly consume synthetic garments. However, India's exports are heavily skewed towards natural fabrics, limiting its potential in the global market.

To accelerate growth in the apparel sector, Chakravarty proposed a special collateral-free credit scheme linked to exports. He argued that such a scheme would be more effective than the Production-Linked Incentive (PLI) scheme in scaling up garment exports quickly.

The letter advocated for India to sign free trade agreements with the European Union, the UK, and the US. This would enable India to compete more effectively with countries like Bangladesh, which enjoys preferential duty treatment as a Least Developed Country (LDC). By implementing these measures, India could potentially double its apparel exports from the current $15 billion to $30 billion, creating over one crore new jobs, primarily benefiting women, as per estimates from NITI Aayog.