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

Textiles | On 22nd May 2017

GST to be biggest achievement of Modi govt: ASSOCHAM

Goods and Services Tax (GST) which is near a roll-out would be the...

Textiles | On 22nd May 2017

Maintaining NAFTA benefits is crucial: Cotton council

The US must remain a participant in a vibrant North American Free...

Apparel/Garments | On 22nd May 2017

Retailers ask Congress not to go for consumption tax

The National Retail Federation has asked US Congress to focus on...

Interviews View All

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

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

Sanjukta Dutta
Sanjukta's Studio

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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