India Government Will Sign Free Trade Agreement With EU

　　 India The government will sign a free trade agreement (FTA) with the European Union at the end of this year, which may raise the mood of India's textile industry.

During the fifty-fifth national Clothing Fair held by the India Garment Manufacturers Association (CMAI), India textile minister Kiran Dhingra said, we hope to work with the European Union. free trade agreement It was signed in -12 November.

The European Union accounts for 49% of India's annual exports of US $13 billion. Therefore, free trade agreement is of great significance to the domestic textile industry. The slowdown in European economic growth has led to India's recent years. clothing Exports to Europe have been reduced by more than 50%. Therefore, garment and garment manufacturers are exploring other markets, such as South America, West Asia and East Asia, to compensate for the decline in export business.

　　 Spin Commissioner AB Joshi said that the prices of garments and garments in India were matched by competing countries, including Bangladesh and China. As the quality of clothing in India is aligned with the competitive countries, India exports have no reason to be unpopular.

The cost of goods in India is 10-15% higher than that of Chinese products, which is 15-20% higher than that of Bangladesh products.

Clothing exports have been worst affected by the continuing global economic slowdown. In the first half of this fiscal year, exports may be lower than the same period last year. However, due to the efforts made by garment enterprises in the development of new markets, the export situation is expected to improve in the second half of the year.

Once the FTA is signed, the cost of garment production in India will be at a level with China and Bangladesh. Bangladesh is the least developed country. Therefore, it enjoys zero tariffs on exports to the European Union. On the other hand, China produces low price clothing.

India exporters will benefit directly from India EU FTA. At present, India is lagging behind China. Once the FTA comes into force, this situation will soon change.

In the last fiscal year, India's textile exports amounted to US $33 billion, of which 49% were exported to the European Union. Each garment is subject to a 9.6% import tax, and other textile products are subject to a 5% import tax. Once the FTA is signed, these import taxes will be abolished.

After signing the FTA, the pricing of India exporters will be matched with China and Bangladesh.

In the past few years, the annual target of textile exports in India has not been completed. After signing the FTA, India will be able to complete its annual export target, because India traders have been developing new markets and improving their popularity in new ways.