Textile associations in Coimbatore and Tiruppur districts are hopeful of India signing a Free Trade Agreement (FTA) with the United Kingdom at the earliest, enthused with the news of Rishi Sunak, who is of Indian descent, becoming Prime Minister of the U.K.
According to K.M. Subramanian, president of Tiruppur Exporters’ Association, there are positive indications that the FTA will be expedited. As soon as the new government in the U.K. stabilises, the Association will join hands with other organisations such as the FIEO and AEPC and submit a memorandum to the Indian government to expedite the FTA. Indian garments attract nearly 11 % duty in the U.K. now and with the FTA, India will become competitive with countries such as Bangladesh. If an FTA is signed with the U.K., the share of the country in exports from Tiruppur will increase to 30 %, he said.
V. Elangovan, president of Association of Buying Agents for Textiles, said almost 20% of garment exports from Tiruppur are to the U.K. Signing an FTA with the U.K. will result in 10% increase in exports, he said. Most of the works are over for the FTA and the remaining should be expedited so that textile exports to the U.K. sees a jump.
The Confederation of Indian Textile Industry said, in the last one year, textile and clothing exports to the U.K. saw a dip mainly because of issues in that country’s economy. The FTA will benefit especially the clothing sector as it is a traditional market for Indian exporters.
According to Southern India Mills’ Association, Indian textile goods attract on an average 9% import duty in the U.K.. The FTA will ensure duty free exports. “While non-tariff barriers remain a matter of concern, there will be no tariff barriers if the FTA is signed,” said its Secretary General K. Selvaraju.
Source: https://www.thehindu.com/