All major apparel exporters associations of North India have welcomed the increase in the rates of Merchandise Exports from India scheme (MEIS) and RoSL. The NCR region, comprising Delhi, Noida, Gurgaon and Faridabad, comprises around 35 per cent of the overall apparel manufacturing base of India. While thanking the government for enhancement, the associations in this region - The Apparel Exporters & Manufacturers Association (AEMA), Garments Exporters Association (GEA), Okhla Garment and Textile Cluster (OGTC) and Noida Apparel Export Cluster (NAEC) have also expressed disappointment with the dilution of drawback and RoSl benefits to the industry, post GST.

Discussing the enhancement rates of MEIS, Sudhir Sekhri, Chairman, Garment Exporters Association (GEA) said, "The enhancement in MEIS rates will help in the fulfilment of orders for Christmas as it will ease blocked capital." In the wake of dwindling apparel exports, the exporters have requested the government to increase the amount of duty drawback and RoSL from existing rates to mitigate losses. Industry estimates the blockage of taxes is significantly higher than the drawback and RoSL rates announced and therefore, a higher rate of duty drawback and RosL should be announced at the earliest.

PMS Uppal, President OGTC points out the apparel Industry is witnessing a major crisis and to prevent the situation from deteriorating further, the government should increase the rates of duty drawback and RoSL as the sharp reduction in rates have dealt a huge blow to competitiveness. Vinod Dhawan President, AEMA said says major competitors like Vietnam and Bangladesh have several cost advantages on account of competitive wages. On the issue of Issue of preferential tariff, Dhawan said, "India has to pay the duty of 9 per cent in EU vis- a-vis the 0 per cent of Bangladesh and Vietnam besides other logistics and infrastructure benefits."