FTA with US, EU soon?

FTA with US, EU soon?

The Free Trade Agreement between India and EU will be signed at the earliest since the dialogues between the two countries have been revived, said Rashmi Verma, Union Secretary (Textiles), said at the inaugural of the 42nd India Knit Fair.

The Free Trade Agreement between India and EU will be signed at the earliest since the dialogues between the two countries have been revived, said Rashmi Verma, Union Secretary (Textiles), said at the inaugural of the 42nd India Knit Fair. Verma also hinted at taking steps to get FTA with the U.S. ratified at the earliest. It should be recalled that apparel exporters from clusters like Tirupur were requesting for speedy signing of FTAs with EU and the U.S. for long as majority of exports were to these two regions.

Talking about the priorities listed by Union Government to increase the textile exports from India, Verma said that through extension of market assistances, they are now encouraging the garment exporters to explore new markets in South America and the Middle East, among few other regions. Similarly, product diversifications are promoted so that apparel exporters can penetrate niche markets across the globe.

On India’s share of apparels made of man-made fibres continuing to remain low, even as 60 per cent of the shelf space in global markets was getting occupied with garments made of man-made fibres, Verma admitted that it was a matter of concern. Usage of man-made fibres is low probably due to the tax structure. So, they have suggested to the Finance Ministry to reduce the excise duty on man made fibres from 12 per cent to 6 per cent.

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