According to Vaid, Chairman, AEPC increased installed capacities will require reforms in five

broad areas i.e. facilitating capital investment, changes in labour laws, simplification of exim
norms, fiscal incentives as provided in other countries. More specifically he identified the following
action points.

i. Prompt disbursal of interest compensation under the Technology Upgradation Fund

(TUF) scheme.
ii. Reduction in import duties on textile machinery.
iii. Labour laws should be made flexible and stringent laws like Prohibition of Contract
Labour and Industrial Disputes Act should be modified.
iv. Infrastructural bottlenecks need to be removed.
v. Those exporting 100% of their products should be treated at par with 100% export-
oriented units, irrespective of their location.
vi. Increase in cash assistance from 2% to 4% of FOB value under Market Linked focus
Products Scheme.
vii. Full reimbursement of all Excise, Customs duties, Service tax, education cess and
various State-level taxes and the duty drawback rates should be determined accordingly
and
viii. 100% exemption for export earnings under Section 80 HCC of Income Tax Act as also
there should be moratorium of at least two years for repayment of principal amount
against term loans and the banks should pay interest for delay beyond one month in
reimbursements under schemes like DEPB, duty drawback, terminal Excise duty rebates
and assistance under TUF scheme.

GEA

G.S. Madan, President GEA says, "The first Budget of the new UPA Government may provide
some relief to the textile industry. I hope that necessary fiscal relief will be granted to the textile
industry in general and garment export sector in particular to help the exporters to overcome the
present crisis being faced by them because of worldwide recession resulting in slowing down of
export orders from overseas markets. The Government should give top priority to the textile
industry as it provides large employment to rural poor and weaker sections of the society
particularly women." He hopes, or shall we say expects:

i. Hike in duty drawback rates by 4% to ensure full reimbursement of Excise and Customs
duties and various state level taxes.
ii. Provision of bank finance at not more than 7%.
iii. Restoration of 4% interest subvention on export credit upto March 2020.
iv. Reducing transaction cost by simplifying administrative procedures by avoiding delays at
Customs clearance of goods; improving loading and unloading of cargo and infrastructure
at ports to avoid congestion at ports.
v. Provision of diesel at international prices and exemption from Excise duty and local levies
to encourage captive power.
vi. Exemption of all export related services from Service tax and Fringe Benefit Tax.
vii. Implementation of GST (Goods and Services tax) at the earliest.
viii. Treating exporters undertaking 100% exports of their goods at par with EOUs.
ix. Provision of 100% risk coverage through cheaper ECGC scheme to encourage exporters
to take risks with new markets and customers.
x. Allowing duty-free import of fabrics and trimmings used for garment exports upto 25% of
FOB value of their exports, without any licensing procedures to exporters, who export
100% of their products.
xi. Extension of Focus Market Scheme to all markets for export of garments to further
broaden market base in these difficult times of worldwide recession.
xii. Introduction of labour reforms to meet the requirement of seasonal work with exporters.