Home / Knowledge / News / Textiles / 'Brexit an opportunity to negotiate favourable GSP'
'Brexit an opportunity to negotiate favourable GSP'
20
Jul '16
The almost imminent exit of the United Kingdom from the 28-member European Union, commonly referred to as Brexit, provides an opportunity for India to negotiate a favourable Generalised System of Preferences (GSP) with the United Kingdom, feel experts from the Indian textile industry.

“This development (Brexit) is positive for the Indian textile industry. The EU currently provides duty free or concessional GSP benefits to Bangladesh, Pakistan and Sri Lanka for textile and apparel products, which is seriously affecting Indian exports of textile goods,” B Sriramulu, managing director at KG Denim, told Fibre2Fashion.

“With UK leaving the EU, the country will renegotiate trade pacts within the WTO ambit with all nations including India. India can take this opportunity to negotiate a favourable GSP similar to our neighbours without offering the same benefit as demanded by EU on behalf of Germany,” he explained.

Speaking on the same subject, Sanjay Jain, managing director of TT Limited, said “We anyway had no advantage with EU while our competitors had. UK is a big market for us and after Brexit we all shall be on equal footing and chances of an Indo-UK trade agreement are much higher than an India-EU trade deal.”

In fact, UK's business minister and now communities secretary, Sajid Javid, has already expressed a desire to start informal talks on a trade treaty, so that, as and when UK completes the EU exit process, both countries would be ready with a trade treaty.

Manish Mandhana, joint managing director at Mandhana Industries Ltd said, “UK has been more of an importer than exporter. With a big economy and low resources it is dependent on Europe, China and India for its imports.”

“The pound rate might fall against the dollar and thus, the rupee and the companies which have income from UK and Europe are going to be hit, at least for shorter term and if we look at indirect impact, foreign investors may exit Indian investments to rush back to the dollar,” he added.

“While this may impact financial markets in the short term there will not be major effects on India as India's economic fundamentals are strong,” Mandhana observed.

Even Moody's Investors Service, in its latest report said UK's decision to exit the European Union will not have any significant credit impact on India and other countries in the Asia Pacific region.

“While the fiscal and monetary policy space is constrained in India its exposure to external financing is limited,” the ratings agency added in the report. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search