||India to ride new pacts to treble apparel exports
The textiles ministry hopes to ride free trade deals with Japan and the EU to target $50 billion in apparel exports over the next three years from $18 billion targeted for 2012-13, despite a slowdown in demand from traditional export destinations. The EU and the US account for about 80 per cent of Indian apparel exports.
India is targeting a huge chunk of the export target as a spinoff from the free trade agreement that the country is likely to sign with the EU later this year. While there is no official announcement, it is expected that the EU will lower its import tariff on apparels from the present 10 per cent to negligible, as part of this trade deal with India. India’s apparel exports to Japan have already jumped substantially in the wake of the comprehensive economic partnership pact that the two countries signed a year ago. India’s share of the $31.1 billion Japanese apparel imports worth is only 0.9 per cent at present.
The EU imports about $174.7 billion worth apparels, of which India’s share is just four per cent at $7.4 billion. The US, too, imports apparels worth almost $77.7 billion, out of which India’s share again is a modest four per cent at $3.3 billion.
A concept paper on tripling apparel exports in three years has been prepared by the Apparel Export Promotion Council (AEPC) and discussed with the textiles ministry. The council is now working on a final paper to be presented to the ministry in a month’s time.
“The ministry of textiles is looking at the possibility for apparel exports of $50 billion by 2015, on the back of duty benefits from Japan and the EU as part of their trade pacts with us. Besides, the focus is also to move up the value chain,” a senior textiles ministry official told FC.
Source : wrd.mydigitalfc.com