According to industry groups, garment exports from India to Australia are likely to increase by 30% next year as a result of the India-Australia Free Trade Agreement (FTA).
When the India-Australia FTA starts on 29th December 2022, various Indian products including textiles and apparel will get preferential market access to the Australian market without tariffs.
“With increasing orders from Australia, garment exports are expected to increase by about 30% this year,” said KM Subramanian, president of the Tiruppur Exporters’ Association (TEA). business line.
Garment exports from India to Australia are expected to reach around Rs.90 crore in 2021 and grow to around Rs.1.2 crore in 2022, with the Tirupur region accounting for around 60% of these exports to Australia. occupies .
However, the overall export value of textiles and apparel from India to Australia is estimated at $392 million in 2020-21. 70% of Indian textiles and 90% of apparel faced tariffs on exports to Australia. According to estimates, India’s textile and apparel exports are expected to grow from $392 million to $1.1 billion over the next three years due to the elimination of tariffs under the FTA.
level playing field
“Australia’s zero import tariff access to India (previously 5%) is likely to level the playing field for India’s textile industry with other countries such as Bangladesh, China and Vietnam,” said the assistant vice president. Sahil Udani, also head of corporate ratings, said. at ICRA.
In the first seven months of FY2022 and FY2013, Australia accounted for around 2% of India’s apparel exports, compared to around 1% in FY2015. Going forward, this share is expected to grow further due to the additional benefits of the Indo-Australia FTA.
“Furthermore, with increasing interest in China plus one vendor strategy, the FTA should help reduce Australia’s dependence on China (one of Australia’s leading exporters),” Udani added. rice field.
The Australian market has great potential for Indian exports of home textiles such as bed and bath linens, toilet and kitchen linens, curtains, pillowcases, quilts and comforters, cotton bags, ready-to-wear, carpets and flooring.
India has so far signed 13 Free Trade Agreements (FTAs), including the recently signed CEPA (Comprehensive Economic Partnership Agreement) with the UAE and ECTA (Economic Cooperation and Trade Agreement) with Australia, as well as 6 FTAs with various countries. signed two preferential trade agreements (PTAs). trading partner.
The Indian government is also working on FTA negotiations with countries such as the UK, European Union and Canada to enhance market access for Indian products, including textiles.
