Textile And Garment Enterprises Enjoy Preferential Policies Overseas To Help Enterprises Develop Rapidly

Investment enterprises in BIAC Park can enjoy a preferential corporate income tax rate of 20% for up to 15 years, while the general corporate tax rate is 33%. In addition, enterprises in the park can also be exempted from all local taxes, such as consumption tax, service tax and value-added tax.

　　“ The Belt and Road Initiative ”As China's new international strategic framework, it has brought multiple development opportunities to China's economy. Chinese enterprises will set off a wave of "going global", and expanding overseas investment has become an irresistible trend. In order to develop their own textile and clothing industries, countries along the line have constantly formulated various preferential policies to attract foreign investment and drive the rapid development of industries. India, as the second largest textile country after China and a key country of the "Belt and Road" Textile and garment enterprises A number of supporting policies have been introduced, such as capital subsidies, interest subsidies, energy subsidies, tax subsidies, training subsidies, etc. In Bandik (BIAC), a mature garment park in Andhra Pradesh, the settled enterprises can also enjoy a number of preferential services customized for enterprises in the park on the basis of enjoying various preferential policies issued by the Indian Andhra Pradesh government, helping Chinese investment enterprises to develop rapidly.

Large investment subsidies and interest subsidies

In BIAC, investment enterprises can obtain 20% of investment subsidies for fixed investment assets, with the maximum amount of subsidies up to $1.6 million. At the same time, enterprises can also enjoy the interest subsidy rate of term loans higher than 12.5%, which is basically equivalent to interest free loans, Compared with the preferential policies for textile and clothing issued by the Andhra Pradesh government from 2015 to 2020, it is more extensive.

The Andhra Pradesh government provides up to 1% of independent garment and apparel enterprises A capital subsidy of 100 million rupees. Eligible enterprises can enjoy different capital subsidies according to the type of investment and the total amount of fixed assets. For cotton ginning, cotton spinning, weaving, printing, dyeing and processing, knitting, ready to wear/finished products, machine carpet making, machine embroidery enterprises and any other processing activities within the textile value chain, such as curling, curling, knobs, winding and shaping, the maximum amount of 8% interest subsidy. For spinning and modern cotton ginning, up to 7.5% interest subsidy will be provided. The interest subsidy will last for seven years, including a two-year moratorium or an earlier repayment period.

Infrastructure and energy subsidies

Backward infrastructure and energy shortage are important factors hindering the development of India's textile industry, but in BIAC Clothing City, this development weakness is no longer an obstacle. Bradyk Clothing City (BIAC) has complete and modern infrastructure, and has established fully functional power facilities, water supply plants and sewage treatment plants. Sufficient spare capacity can fully meet the application of enterprises in the park.

In addition, the park also provides electricity subsidies for enterprises settled in the park for up to five years. Cotton spinning enterprises can enjoy an electricity subsidy of 1 rupee per kilowatt hour, and other types of clothing enterprises can enjoy a subsidy of 1.5 rupees per kilowatt hour. The subsidy period starts from the date of commercial production. Such subsidies are the same as the policy subsidies issued by the Andhra Pradesh government.

　 Preferential tax subsidies

The preferential tax policy is an important measure to attract foreign investment. The investment enterprises in BIAC Park can enjoy a preferential corporate income tax rate of 20% for up to 15 years, while the general corporate tax rate is 33%. All the imported raw materials and production equipment (whether new or old) of the settled enterprises can enjoy tariff exemption without a license. In addition, the enterprises in the park can also be exempted from all local taxes, such as consumption tax, service tax and value-added tax. In the whole textile industry value chain, any end products/semi-finished products (from cotton to clothing and finished products) that have been taxed in the production process can enjoy VAT, central sales tax, special goods&consumption tax rebates, and up to 100% tax refund.

As a model of innovation, technology and efficiency of one-stop platform services in India's clothing industry, BIAC can not only enjoy the preferential policies of Andhra government and the park on textiles and clothing, but also enjoy other unique advantages of BIAC clothing city (labor, labor, etc.).