Confederation of Indian Textile Industry (CITI) has said that free trade agreements with the European Union, Australia, Canada and Britain will help Indian exports of garments and made ups, at par with its competitors such as Vietnam and Bangladesh.
CITI Chairman Sanjay Jain said, besides FTAs, a reduction of import duty on Indian cotton yarn and fabrics by China, is “the biggest game changer that can transform the Indian textile and clothing industry.” The made-ups sector, which includes products such as towels and bedsheets, is the second-largest employer in the textile sector after apparel.
Another major issue which can enhance the export competitiveness of the Indian textile products is refund of all duties and taxes on exports across the value chain, as in principle, a country should not be exporting any types of taxes or duties,” said Jain.
CITI has highlighted rising imports of textile products as a key area of concern, which needs immediate attention. India’s exports of textiles and apparel rose 14 per cent on year in November 2018, at RS. 18,965 cr compared with Rs. 16,707 cr in November 2017. Apparel exports grew 21 per cent in the same time period.