Home / Knowledge / News / Textiles / India probes Iranian market for textiles exports
India probes Iranian market for textiles exports
07
Jul '16
Indian garment exporters may soon start shipping their products to Iran. This, after a delegation led by the Commerce Ministry and accompanied by over half a dozen industry officials recently met their Iranian counterparts in Tehran to discuss a host of issues including prevailing taxes and relaxation in policy support for hassle-free export of textiles to Iran.

Following the Indian delegation's visit, tax authorities in Iran have agreed to reduce import duty on textiles and apparels to a 20-25 per cent level or even lower over the next two years from the current rate of 55 per cent and 32 per cent.

India has stayed away from the Iranian market mainly because of extremely high import tax. Until two years ago, an import tax of 200 per cent was levied on apparels and textiles which have been gradually slashed to 55 per cent and 32 per cent, respectively.

Iran has been on India's radar as it seeks to reduce dependence on the European Union and the US for growth.

“Although the United States and the European Union are important markets for us, we are exploring new markets for textiles exports to reduce our dependence on these two regions,” said Rashmi Verma, Secretary, Ministry of Textiles, on the sidelines of an event in Mumbai.

She also said that India could take advantage of China's falling market share in the world's textiles and apparel segment to increase its own footprints from the existing 5 per cent.

New markets have become critical for Indian textiles exporters due to falling shipments to traditional markets such as the US and the EU, which account for over 60 per cent of India's textiles and apparel exports.

Owing to preferential treatment given to the countries like Pakistan, Vietnam and Bangladesh, textiles shipped to such buyers works out to be uncompetitive for Indian exporters. Consequently, India's exports have declined over the last few years.

In FY2016, India set a textiles export target of $47.5 billion, but could reach a figure of only $38 billion - $2 billion less than the previous year.

Last month, the government announced a textiles export target of $50 billion for FY2017.

“The targets look achievable,” said Rahul Mehta, President, Clothing Manufacturers Association of India (CMAI).

Mehta said Iran's market size stands at $16 billion, of which only 40 per cent comes from domestic sources, and hence, has immense opportunities for Indian textiles and apparels exporters. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Robert Lighthizer speaking at the opening of the ministerial plenary of the 16th Forum of AGOA, in Lome. Courtesy: US Embassy in Togo

Textiles | On 17th Aug 2017

US committed to Africa, Lighthizer tells AGOA forum

The United States and Africa can jointly create a better business...

Textiles | On 17th Aug 2017

Sri Lankan textile exports down 4.1% in May 2017

After showing positive trend for two consecutive months, Sri Lankan...

Courtesy: American Eagle Outfitters/Aerie

Apparel/Garments | On 17th Aug 2017

ABFRL to sell American Eagle products in Indian market

Aditya Birla Fashion and Retail Ltd (ABFRL) has entered into a...

Interviews View All

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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

August 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
66.7%
No
18.5%
Skip
14.8%

Total Votes: 27

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
37.0%
No
40.7%
Skip
22.2%

Total Votes: 27

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
81.5%
No
7.4%
Skip
11.1%

Total Votes: 27

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
55.6%
No
11.1%
Skip
33.3%

Total Votes: 27


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



X