Home / Knowledge / News / Textiles / Negotiate with China for zero-duty: CITI tells Centre

Negotiate with China for zero-duty: CITI tells Centre

04
Aug '18
Courtesy: Lum3n.com from Pexels
Courtesy: Lum3n.com from Pexels
To put a break on India’s widening trade deficit with China, the Confederation of Indian Textile Industry (CITI) has urged the Union government to push negotiations with its northern neighbour to give duty free access to Indian cotton textiles. With zero-duty access, India can double its textile exports and also reduce its trade deficit with China.

In 2017-18, India’s bilateral trade with China was $89.6 billion, and trade deficit was $62.9 billion—much higher than $51.1 billion deficit in 2016-17. In terms of textile trade, India exported $1.362 billion worth of goods to China in 2017-18, while it imported items valued at $2.905 billion, resulting in trade deficit of $1.543 billion.

During 2010-11 to 2013-14, India was a net exporter of textile and apparel products to China. However, after that India’s trade deficit with China is constantly increasing, said CITI chairman Sanjay Jain.

“India was a market leader in cotton yarn but lost almost 50 per cent of its market to Vietnam over the last 3 years, creating excess capacity in the system. India’s cotton yarn exports to China has decreased by 53 per cent from 2013 to 2017 while Vietnam’s exports of cotton yarn to China has increased by approximately 88 per cent during the same period,” Jain said in a press release.

Another reason for India’s widening trade deficit is that its competing countries such as Vietnam, Indonesia, Pakistan and Cambodia enjoy duty free access to the Chinese market while Indian products carry 3.5 per cent, 10 per cent and 14 per cent duty on yarn, fabric and madeups, respectively.

Moreover, the profit margins in the cotton textiles industry are very thin, in single digit only. “Therefore, the industry is very sensitive to even small changes. Hence, if level playing field is given to India like its competitors, it can double its exports plus help in reducing trade deficit with China,” Jain said. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: ASEAN

Apparel/Garments | On 16th Nov 2018

ASEAN RCEP pushed back to 2019 due to lack of consensus

The Association of Southeast Asian Nations (ASEAN) postponed...

Cotton sector to receive boost in Azerbaijan's Ujar region

Textiles | On 16th Nov 2018

Cotton sector to receive boost in Azerbaijan's Ujar region

Factories for cotton processing, production of cottonseed oil and...

Uzbekistan wants zero EU customs duty on textile products

Textiles | On 16th Nov 2018

Uzbekistan wants zero EU customs duty on textile products

Uzbekistan plans to seek zero customs duty from the European Union...

Interviews View All

Nitin Bhatia, Trend Arrest

Nitin Bhatia
Trend Arrest

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

Top executives, Textile industry

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Deepak Jain, Baggout

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

Lucilla Booyzen,

Lucilla Booyzen

South African Fashion Week (SAFW) is a B2B marketing platform for fashion, ...

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Eric Scholler, Groz-Beckert

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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


November 2018

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

news category


Related Categories:

Advanced Search