The council has also sought procedural simplification by Tax Collected at Source (TCS) and concessional tax regime (CTR) for expansion to boost investment in the sector.
Apparel exports to UK, which is India’s third largest export destination after the US and UAE, have been facing a tariff disadvantage of 9.6 per cent against countries like Bangladesh.
AEPC Chairman A Sakthivel said that the agreement would help in removing the customs duty disadvantages faced by domestic players in the UK.
The textile hub in Tamil Nadu, Tirupur alone can manufacture over 3 Crore pieces of N95 masks monthly besides regular cotton/2/3 ply masks.
The Council pointed out that Indian apparel exports have a duty disadvantage of 9.6 per cent in the EU market as compared to competitors like Bangladesh, Cambodia, Sri Lanka and Pakistan.
In his letter, Sakthivel cited that the industry has taken several hits due to the COVID-19 pandemic and business in principal exports markets like US, UK and Europe have been affected.
The eligibility criteria to apply for the Emergency Credit Line Guarantee Scheme (ECLGS) scheme may be amended with no annual turnover for exporters.
The Indian apparel industry saw a decline of 91 per cent and 66 per cent exports in April and May 2020, respectively, the Apparel Export Promotion Council said.
The Apparel Export Promotion Council (AEPC) has been promoting local production of goods, that are normally imported from China.