The Apparel Export Promotion Council (APC) has welcomed the European Union’s (EU) decision to extend Generalized Scheme of Preferences for three years till 2019. Under the extension, India’s ready-made garments (RMG) sector will continue to get 20 per cent tariff preference on exports to EU for the next three consecutive years.
The European Union’s scheme of GSP was scheduled to end on 31 December, 2016. AEPC has said that the Indian Ready Made Garments sector will continue to enjoy its position of being a beneficiary under the current scheme which has affected the textile sector through removal of this tariff preference.
AEPC has said that the Indian products will gain a new edge in new markets. Of India’s total annual garments exports of around $17 billion, about a third go to the EU. Indian RMG exports to EU are 36 per cent of the country’s total exports of readymade garments.