India’s Apparel Export Promotion Council (AEPC) has embarked on an exploratory visit to Iran to understand the market after removal of sanctions. A delegation under the stewardship of Ashok G Rajani, Chairman-AEPC and four executive committee members of the council visited Tehran recently.
According to Ashok G Rajani, Chairman, AEPC, “The warmth and positive attitude towards India among the members of the trade associations and government representatives augurs well for trade promotion between the two countries. Although the economy and trade is still recovering from the impact of the sanctions, there is market for simple but stylish apparel products, which AEPC plans to tap.â€Â
India’s share in Iran’s RMG import was 2.5 per cent in 2015; thus there is an impeccable possibility for India to capture the growing Iranian market. Iran’s ready-made garments import from around the world has shown a growth of 43.3 per cent in 2015 which has increased to $825.9 million in 2015 from $576.2 million in 2014.
“Although it is small market at present, there is scope for growth in the immediate future and we want India to be an important partner in this growth,†said Rajani. The council has drawn its export promotion program for the year 2016-17 with a view to achieve an export performance of $18750 million in the year 2016-17. Meetings with Iran Textile Export Association, Tehran Chamber of Commerce and Tehran Textile Union had discussion on how to reduce tariffs and facilitate market access. Incidentally, Iran has seen a progressive reduction in tariffs from 300 per cent during sanctions to the present 55 per cent. The high tariffs had resulted in ‘unofficial’ imports being over 10 times the volume of ‘official’ imports. Hence the Trade associations have been working with the government for reduction in import duties to international levels.