The Ministry of Textiles has contacted the Export Promotion Council and other industry bodies to ensure full utilization of the Free Trade Agreements (FTAs) India is negotiating with partner countries, including the one already in place with Australia. Take a chance, according to a new official.
“Markets such as Australia, UK, Canada and the EU impose tariffs as high as 10-15% on Indian garments and textiles. , the FTA with Canada may end soon.So the tariff barriers will start to be dismantled.The Ministry of Textiles is trying to devise ways to ensure that these are properly utilized,” said the official. said the person. business line.
According to the Confederation of Indian Textile Industries (CITI), India’s share of textile exports to Australia is only about 5%, but according to the Confederation of Indian Textile Industries (CITI), textiles and apparel exports to Australia at zero percent tariffs under the FTA. With free movement to the country, it is expected to increase soon. ).
Capacity utilization
Australia is the largest importer of garments in the Southern Hemisphere, and increasing garment exports to the country could help harness the sector’s capacity to cope with the seasonal nature of exports. , CITI Chairman T Rajkumar explained in a recent statement. .
Currently, Indian garment exporters have to suffer 4-5 months of crop failure during the winter season in western markets where there is no demand for summer clothes.
“It is important to spread awareness among exporters about the benefits of FTAs and explain the process by which they can be used. Export promotion councils and industry associations can play an important role in doing so. The Ministry of Textile is getting them involved,” the official said.
The FTAs that India has signed and implemented in the past with partners such as ASEAN, South Korea and Japan have had a low utilization rate and policymakers are now looking to focus on how this can be improved.
zero duty access
Under the Indo-Australia FTA, which came into effect from 29 December 2022, Australia has provided duty-free access to India for approximately 96.4% of its exports (in value terms) from day one. The two countries hope to double bilateral trade from $45 billion to $50 billion in about five years.
India’s FTA with the UK is in advanced stages of negotiations and is expected to be finalized this year. The proposed India-EU FTA has been negotiated three times, with concurrent negotiations with Canada.
