CITI conducts webinar on utilising FTAs to grow export opportunities

The webinar covered the framework of the FTAs especially with regard to rules of origin and tariff/non-tariff notifications that the units should look into before they take a decision on importing from or exporting to an FTA country. More awareness of not just the country but also the tariff and non-tariff conditions and product-specific rules are important for successfully utilising the FTAs, CITI said in a press release.

T Rajkumar, chairman, CITI, appreciated the commitment of the Indian government to not only expand the Indian markets but also attract more foreign direct investment (FDI) which comes with FTAs and leads to technology transfer, job creation, and economic development of the country. The chairman opined that it is a matter of pride that India has signed 13 FTAs in the last five years including the India-Mauritius Comprehensive Economic Corporation and Partnership Agreement (CECPA), India-UAE Comprehensive Partnership Agreement, and India-Australia Economic Cooperation and Trade Agreement.

“There is a concern that we have not been able to leverage FTAs and hence we would like to sensitise the industry on this issue and have more stakeholder discussions on how to leverage the FTAs, especially for the textile and apparel sector as India has immense potential to capture a major market share in these countries,” he said.

He highlighted the status of the Japan, South Korea, and UAE FTAs where India signed CEPA with Korea in 2010. Since the last 10 years, South Korea’s T&A imports from around the world have increased at a CAGR of 4 per cent to reach $18.8 billion in 2022. While from India, it has increased at a CAGR of just 0.2 per cent to reach $0.37 billion. Moreover, India’s share in South Korea has been hovering in a range of 2-3 per cent during the last 10 years starting from 2013.

Similarly, India signed CEPA with Japan in 2011. During 2022, Japan imported T&A products worth about $35.4 billion from around the world, India’s share in which was a minuscule 1 per cent. Moreover, India has not been able to increase its market share in Japan which since 2013 is still about 1 per cent only.

The India-UAE CEPA came into force in May 2022. During the financial year 2022-23 (April 22 to March 23) which consists of 10 months of the FTA period, India’s total merchandise exports to the UAE increased by 12.7 per cent as compared to the financial year 2021-22. While for textile and apparel, India’s exports to the UAE declined by about 21.6 per cent during the same period.

To conclude, there is a need for the industry to align itself with the partner country, be it supply chain management, institutional partnership, or any type of cultural ethics. The industry must be at the forefront of adhering to the compliance and sustainability requirements of the FTA countries besides maintaining global quality standards, astute business models, and competitive pricing. The more India engages with the partner country, the more it will be able to reap the benefit of a greater partnership with the country.

Fibre2Fashion News Desk (NB)