Indian exports of garments and made ups will get a boost after entering the Free Trade Agreements (FTAs) with the European Union, Canada, Britain, and Australia, according to Confederation of Indian Textile Industry (CITI). This would be on par with the country’s competitors such as Bangladesh and Vietnam, CITI further added.
Besides FTAs, a reduction of import duty on Indian cotton yarn and fabrics by China, was the biggest game changer that could transform the Indian textile and clothing sector, said Mr Sanjay Jain, CITI Chairman.
In the textile sector, after apparels, the second-largest employer is the made-ups sector. This segment has products such as bedsheets and towels.
Mr Jain added that one more major issue that can augment the country’s textile products’ export competitiveness is the refund of all taxes and duties on exports across the value chain. This is because, any country should not export any taxes or duties, in principle, he further stated.
A key area of concern is the rising imports of textile products as highlighted by CITI, which also needs immediate attention.
At INR 18,965 crore, the country’s exports of textiles and apparel rose 14 per cent on year in November 2018, compared to INR 16,707 crore in November 2017. In the same time period, apparel exports grew 21 per cent.