Textile industry upbeat over FTA between India, EU.

SURAT: The textile entrepreneurs and exporters in the city are upbeat as the proposed Free Trade Agreement (FTA) between India and European Union (EU), negotiations for which are currently taking place, will boost their trade in the coming days.

Sources said that EU is the important export destination for the textile garments and fabrics manufactured in India, including the synthetic fabrics manufactured in Surat, the country's biggest man-made fibre hub. Presently, EU levies an import duty of 9.6 per cent on garments and five percent on other textile items from India, which would end as soon as the FTA is inked.

India is the third largest exporter of textile products to the EU after China, Turkey and Bangladesh. In 2012, the country exported around $7 billion worth of textile goods and apparels to EU.

The benefits of FTA with India for the EU are multiple and that the agreement would also be very beneficial to the textile industry in the country that could improve its access to state-of-the-art products and technology at more competitive prices.

Textile industry leaders said that the man-made fiber hub has an annual export of Rs 1200 crore to the countries like UAE, EU, US and Pakistan. The amount of export to EU was less due to the high import and export duties.

Arun Jariwala, chairman, Federation of Surat Art Silk Weaving Industry (FIASWI), said, "We hope the FTA negotiations between India and EU to end soon so that the textile industry could take maximum benefit out of it.

The synthetic fabric and garments export will get a major boost in the FTA. Also, the textile entrepreneurs would be benefited in importing state-of-the-art technology and other products at competitive rates."


Source : timesofindia.indiatimes.com