India is likely to be eligible for the European Union (EU) Generalised System Preferences (GSP) scheme with Euro 6.9 billion worth of Indian exports to EU.
Under GSP scheme India will get better benefits for leather and skin products. However, the quotas on textile and clothing will be sustained.
Mariella Cantagalli, first secretary, Trade and Economic Section, Delegation of the European Commission in New Delhi explained that under the new GSP Plus scheme that will be implemented from January 1, 2006, would take into many international standards and the 7200 products exported by India, half of them will enjoy duty free and lower or no duties for textiles.
Cantagalli informed that as per 2004 reports EU accounts 23.7 per cent in exports and 16.69 per cent to imports in the country and 14 percent of foreign direct investment (FDI) in India comes from the EU.
However India's contribution to EU trade shows a much poor picture contributing 1.7 percent of EU's exports and 1.6 percent of EU imports, following countries such as Malaysia and Singapore.
Cantagalli stated that there are certain hesitations on both sides regarding policies, EU experiences that barrier such as high tariffs, non transparency and often discriminatory duties and taxes, besides excessive non tariff barriers (NTBs) and infrastructure blockage slow downs optimisation of trade.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
