Global Apparel Market – An Overview | Watch NOW! | Ad
Home / Knowledge / News / Textiles / Assocham bats for FTA with EU to boost textile industry
Assocham bats for FTA with EU to boost textile industry
21
Oct '15
To help textile industry reach its earning potential of $500 billion by 2025 from the current level of $110 billion, industry body Assocham has advocated signing of Free Trade Agreement (FTAs) with European Union countries (EU) and entering agreement with the US before our industry become uncompetitive once the Trans-Pacific Partnership (TPP) comes into force.

In a note to the government, the Assocham has stated that the estimated $500 billion potential consists of domestic sales of $315 billion and exports of $185 billion. To achieve this huge target, great planning and action are required on the part of both the industry and the government. This looks ambitious but is not impossible as China by introducing various pro-industry policies has achieved progress in the same in the last 10-15 years.

“The domestic market has to grow at 16-17 per cent from the present $68 billion to around $315 billion. Currently, the total textile exports from India are $40 billion. Out of this, cotton exports are about $21.50 billion, MMFs are about $10 billion and other textiles like silk, handloom, jute are about $8.50 billion,” said Assocham secretary general, D S Rawat.

Assuming cotton exports to grow about 10 per cent at CAGR, the total cotton exports by 2025 would be around $55 billion and other textiles would be of around $14 billion, thereby leaving a target of $116 dollar which mmf/filament yarn only can achieve. Exports of MMF/filament yarn are currently $10 billion and in order for MMF/filament yarn to reach the target level of $116 by 2025, this segment will have to grow at more than 25 per cent CAGR, the Assocham note said.

“However for the last 10 years, we have been regularly failing to achieve our export targets because our concentration remains high on cotton. The MMF/filament yarn industry, which could have given much desired growth, has not been given its due attention. Now, the time has come that we give due focus on the MMF to attain our exports target and desired growth for the textile sector,” said Rawat.

According to the note, since India has not been able to complete the Doha Round of trade talks, the textile industry will to pay duty of 15 to 30 per cent in the developed markets of US and EU against the Least Developed countries (LDCs) like Bangladesh, Vietnam, Cambodia, Myanmar who are at zero duty. If Doha Round would have been completed, export duty for India would have come down to single digit.

Assocham warned that the TPP will cause trade diversions effects in some of the key sectors such as textiles and clothing industries for India.


Must ReadView All

Courtesy: Asmara Group

Apparel/Garments | On 20th Sep 2018

Fragmented nature of Indian apparel sector major challenge

A major challenge for the Indian apparel sector is its fragmented...

Courtesy: Aditya Birla Retail

Apparel/Garments | On 20th Sep 2018

Indian Aditya Birla Retail to be acquired by Samara-Amazon

India’s Aditya Birla Group has signed a deal to sell Aditya Birla...

India's 2018-19 forward cotton export contract up by 100%

Textiles | On 20th Sep 2018

India's 2018-19 forward cotton export contract up by 100%

Rise in demand from China, lower domestic prices and depreciation of...

Interviews View All

Md Hanifur Rahman, Aman Group

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Top executives, Indian retail players

Top executives
Indian retail players

Walmart's acquisition of Flipkart endorses the humongous opportunities in...

Anavila Misra, Anavila Collection

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Shivani Swamy,

Shivani Swamy

The Livinguard Technology is owned by Green Impact Holding AG based in...

Harmeet Singh,

Harmeet Singh

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

Deepprakash Agrawal,

Deepprakash Agrawal

Radhey Weaves is a Surat-based manufacturer of brocade fabrics. MD...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Matthew Kolmes, Supreme Corporation

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

EDANA, the international association serving the nonwovens and related...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

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

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

Leave your Comments


September 2018

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

news category


Related Categories:

Advanced Search