Home / Knowledge / News / Textiles / 'Time to review India's FTAs to stem falling exports'
'Time to review India's FTAs to stem falling exports'
18
Mar '16
Assocham has sought a thorough review of India's trade agreements like FTAs and PTAs to arrest sliding exports.

It said the country's exports in 2016-17 would be reversing back to near about the level of 2010-11, making it imperative for the government to come out with a fresh strategy to stem continuous fall in exports.

With a 16-18 per cent contraction, exports will aggregate around $260 billion, a level quite close to $251 billion attained in 2010-11. “This is the lowest since the exports broke the $300 billion-mark for the first time in 2011-12 with $306 billion”, Assocham said, giving a feedback to the Rajya Sabha for Examination of Demand for Grants for the Ministry of Commerce and Industry for 2016-17.

Dropping for the 15th month in a row, cumulative value of exports for the period April-February 2015-16 was $238.42 billion as against $286.30 billion registering a negative growth of 16.73 per cent.

“How severe is the situation can be gauged from a possibility that it would take another few years, maybe not before 2017-18, before we retrieve the export levels achieved 2011-12. That would be a seven-year reversal,” Assocham Secretary General Mr D S Rawat said.

He emphasised that while the external sector would remain challenging, new game plan including review of the Free Trade Agreements (FTAs) and Preferential trade Agreements (PTAs) should be devised.

India has signed many trade pacts, more for geo-political reasons rather than commercial reasons, Assocham said. One case is the South Asian Free Trade Agreement, which has not resulted in any significant export gains. India's trade deficit has widened with the ASEAN. Further, most of India's preferential trade agreements (PTAs) are shallow in terms of product coverage. For example, the India-Mercosur PTA doesn't include textiles and apparel items, which face prohibitive import duties of up to 35 per cent.

India's trade pacts have exacerbated inverted duty structure – high import duties on raw materials and intermediates, and lower duties on finished goods – that discourage the production and export of value-added items. Thus, apparel can be imported into India duty free while its raw material –manmade fibres attract an import duty of 10 percent. That makes little sense. Similarly, finished products such as laptops or cell phones can be imported more cheaply than all their parts (imported) separately because of duty inversion

Despite all attempts at diversification, India's merchandise exports have a narrow base, with the top 20 categories accounting for four-fifth of the total exports. Even in top export categories like textiles, India is exporting low value commodities such as cotton yarn or apparel rather than technical textiles, Assocham said. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Hannah Lane
Redress

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Lynda Kelly
Suominen Corporation

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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