The resumption of trade negotiations with the European Union would lead to a sharp increase in exports in the coming days, anticipate the textile companies.
Manoj Patodia, chairman of the Cotton Textiles Export Promotion Council, said the resumption of the ongoing long negotiations would benefit bilateral trade between India and the European Union as it is the largest importing region. of textile and clothing products in the world, amounting to 131 billion dollars last year.
Of Europe’s total imports, India accounted for only 4 percent while Bangladesh, which enjoys zero tariffs, accounted for around 11 percent.
If the duty-free tariff advantage is extended to India as part of the proposed broad trade and investment agreement, it will go a long way in increasing India’s textiles and clothing exports to the trade bloc. of the European Union, he added.
India is unable to increase its market share over the years, mainly due to the tariff disadvantage compared to competing countries such as Pakistan, Sri Lanka and Vietnam, Patodia said.
The average tariff applied to imports from India to the EU was around 9.6 percent for textiles and clothing products, he added. Most importers in Europe are forced to buy from other competing countries due to the large tariff gap, he added.