Overview

Exports are crucial for a country's economic growth as they create jobs, increase foreign earnings, and improve overall economic health. Textile exports are particularly important for India, being one of its oldest industries. The sector includes a wide range of products from traditional hand-made textiles to modern synthetic fibers, all in high demand globally.

India is the world's largest producer of cotton and produced 360.13 lakh bales in the year from October 2021 to September 2022. Despite challenges like the pandemic, India's textile exports grew by 9% in FY21, with 1.13 million tonnes of cotton yarn exported during the fiscal year 2020-21.

Looking ahead, the Indian textile market is expected to surpass US$ 209 billion by 2029, highlighting significant growth opportunities. For businesses in this sector aiming to export, obtaining a textiles export promotion council license is essential to capitalize on these opportunities.

In essence, India's textile industry plays a vital role in the economy through exports, with strong growth prospects driven by global demand and domestic production capabilities.

 

Textile Export Promotion Council?

The Textile Export Promotion Council, also known as the Apparel Export Promotion Council (AEPC), is a government organization in India. Its main role is to support Indian textile exporters. It helps them by providing access to international markets and promoting Indian products both domestically and globally. Essentially, the council works to boost textile exports from India by facilitating trade opportunities and promoting Indian textiles on the global stage.

 

Apparel Export Promotion Council license?

The Apparel Export Promotion Council (AEPC) was created by the Ministry of Textiles, Government of India, to promote the export of clothing and apparel products from India.

The license issued by AEPC is known as Registration cum Membership Certificate (RCMC). This license enables businesses to participate in government initiatives aimed at boosting textile exports. Having an AEPC license also makes these businesses eligible to benefit from various textile export incentive schemes offered by the government. In essence, it's a certification that helps textile exporters in India take advantage of government support and incentives to grow their export activities.

 

Types Of Textile Export Incentives scheme

1.      Merchandize Exports from India (MEIS) Scheme:

o   Introduced in April 2015, MEIS provides duty rewards to specific categories of textile and clothing exports.

o   Exporters can receive rewards up to 25% of the Free on Board (FOB) value of their exports to eligible countries under this scheme.

o   The aim is to incentivize and boost exports by providing financial benefits based on the export value.

2.      Duty Drawback Scheme:

o   This scheme allows exporters to claim a refund of customs duties paid on imported raw materials, machinery, or capital goods used in manufacturing textiles for export.

o   It reduces the cost burden on inputs used in export production, making Indian exports more competitive in international markets.

3.      Market Access Initiative (MAI):

o   MAI is designed to promote long-term export growth by focusing on specific products and target countries.

o   It supports export promotion activities such as market research, surveys, and promotional campaigns.

o   Aimed at helping exporters and organizations penetrate new markets or increase their market share in existing markets.

4.      Market Development Assistance (MDA):

o   MDA Scheme assists exporters and Export Promotion Councils (EPCs) in promoting their products internationally.

o   Financial support is provided for activities like participating in trade fairs and exhibitions.

o   The scheme aims to expand India's presence in established international markets through strategic promotional efforts.

In summary, these schemes are initiatives by the Indian government to support and encourage textile exports by providing financial incentives, easing cost burdens, and facilitating market access and development activities for exporters and related organizations.

 

Schemes Of Ministry Of Textiles

1.      Scheme for Textile Industry Workers Hostel:

o   This scheme aims to provide safe and secure accommodation for textile industry workers.

o   By offering good housing near or within textile parks, it aims to improve worker retention and thereby increase production.

o   The goal is to construct dormitories capable of housing approximately 3,750 workers over a five-year period.

2.      Development of Mega Cluster Scheme:

o   The Mega Cluster Scheme focuses on upgrading infrastructure and production capabilities in handicraft clusters.

o   Many of these clusters have historically been disorganized and lack modern advancements.

o   The scheme aims to organize and develop these sectors to enhance their competitiveness and productivity.

3.      Technology Upgradation Fund Scheme:

o   This scheme provides credit-linked capital investment subsidies to promote manufacturing under initiatives like "Make in India" and "Zero Defect, Zero Effect".

o   It encourages investments in technology upgrades for textile machinery and processes.

o   The objectives include boosting investment, productivity, quality, employment, exports, and reducing dependence on imports in the textile sector.

These schemes are designed to address specific needs and challenges within the textile industry, ranging from improving worker living conditions to enhancing infrastructure and technological capabilities to foster growth and competitiveness.

 

Product Linked Incentive PLI Scheme For Textile?

A performance-linked incentive (PLI) is a reward given by one organization, like the government to businesses, based on how well they perform or achieve specific goals set out in a government program or contract.

The PLI Scheme for Textiles is designed to support the production of MMF Apparel & Fabrics and Technical Textiles in India. Its main goals are to help the textile sector grow, become more competitive globally, and create jobs.

Here are the key points in simple terms:

1.      Purpose: The scheme aims to boost the manufacturing of MMF Apparel & Fabrics and Technical Textiles within India.

2.      Objectives: It seeks to expand and enhance the textile industry, making it more competitive on the international stage and increasing employment opportunities.

3.      Duration: The incentives provided under the scheme will be available for a period of 5 years, from September 24, 2021, to March 31, 2030.

Source Hyperlink (Ministry of textiles notification)

Incentive Rates Under PLI  Schemes for Textiles

Performance year	Incremental turnover on minimum 300cr investment	Rate of incenstive(%)	Incremental turnover on minimum 100cr	Rate of incentive
Year 1 (FY 2024-25)	600 crore	15	200 crore	11
Year 2 (FY 2025-26)	25% increase	14	25% increase	10
Year 3 (FY 2026-27)	25% increase	13	25% increase	9
Year 4 (FY 2027-28)	25% increase	12	25% increase	8
Year 5 (FY 2028-29)	25% increase	11	25% increase	7

 

 

 

 

 

 

Eligibility to become members of Textile Export Promotion Council (TEPC)

  Member Exporter:

• Any person or entity involved in exporting garments, including manufacturers or merchant exporters, can apply for membership.
• The applicant must be a registered firm or company. If it's a sole proprietorship, the applicant should be over 21 years old.
• The firm or company must have achieved total clothing exports exceeding Rs. 1 crore over the past three financial years.
• None of the partners, directors, or Kartas (managing members) associated with the firm or company, including the applicant, should have been declared bankrupt by a court.
• There should be no record of any partner, director, or Karta being convicted of a crime involving misconduct or moral turpitude.

  Registered Exporter:

• Any firm, society, statutory organization, or individual exporter of garments can register as a Registered Exporter through obtaining a Textile Export Promotion Council License.
• Registered exporters can apply to become a Member Exporter once they meet the eligibility criteria specified for member exporters.

Documents required for obtaining a Textile Export Promotion Council (TEPC) License

  Digital Signature Certificate (DSC)

  Import Export Code (IEC) Registration

  Certificate of Export Turnover

  Partners & Directors Details

  MSME Registration (if applicable)

 

Step-by-step procedure to register with the Textile Export Promotion Council (TEPC)

Step 1: Consultation

• First, consult with our experts to understand what documents you need and whether you meet the eligibility criteria.

Step 2: Document Submission and Verification

• Gather all required documents and submit them for verification.

Step 3: Application Filing

• Our team, which includes Chartered Accountants (CA), Company Secretaries (CS), and export experts, will prepare and submit your application to the Textile Export Promotion Council.

Step 4: Approval and Delivery

• Once your application is approved by the Textile Export Promotion Council, we will send your RCMC or Textile Export Promotion Council License directly to your email address