Exports of readymade garments from India grew 4.5 per cent in rupee terms and one per cent in dollar terms during April to January 2016-17 as compared to the same period of the previous financial year. A special package of reforms for the apparel sector was announced in June 2016 targeting employment generation and exports.
The special packages given to the sector are employee provident fund scheme reforms (12 per cent of the employer’s share of provident fund is paid by the government); introduction of fixed term employment; additional incentives under ATUFS; and enhanced duty drawback coverage through ROSL.
In addition to the special package for apparel, several other initiatives have been taken to boost exports. These are a three per cent interest equalization scheme for manufacturers or exporters of readymade garments; Integrated Skill Development Scheme; Amended Technology Upgradation Fund Scheme; two per cent MEIS scheme; and all India duty drawback.
During the April to January period in financial year 2016-17, exports worth Rs 91467.85 crores were made from India while for the same period in financial year 2015-16, exports stood at Rs 87560.23 crores. Exports contribute around four per cent to India's gross economic output. Although the country is hugely dependent on oil imports, exports of oil-based products have supported the economy to a large extent.