Indian RMG wants FTAs with US,EU to boost export
13 March 2016, Nirapad News: Indian Textile Ministry has urged the government to expedite Free Trade Agreements (FTAs) with the US and European Union to help double exports, said its Secretary Rashmi Verma.
Talking to The Hindu , she said “As India does not have FTAs with U.S., Canada and Europe, our sector is at big disadvantage compared to Bangladesh and Vietnam.
As least developed countries, they are exporting at zero duty. Our exports are subject to 10 to 14 per cent duty.”
“It is on labour and wages cost that were are not able to compete with Bangladesh and Vietnam. Quality and branding, we are on par with them. We want to have balanced duty structure. FTAs will give a big boost,” she said, reports The Hindu.
Currently, exports stand at Rs 2.5 trillion and the vision is to double it in the next 10 years. But there are few challenges that put India at competitive disadvantage, Ms. Verma said.
The target for 2015-16 is pegged at $47.5 billion. “We are hopeful of achieving the target as most of the export happens in the last four-five months.
During the current fiscal, we might be one of the few sectors to hit the target,” said Union Development Commissioner (Handlooms), Alok Kumar.-Asfar