While addressing a press conference held on the sidelines of 34th Texprocil Export Awards' function, Mr. V S Velayutham, Chairman of the Cotton Textiles Export Promotion Council (Texprocil) said that India should accelerate the process of Free Trade Agreement (FTA) with the European Union (EU) and the Textile Ministry should offer incentives for value-added textile exports in order to recoup cotton textile exports volumes, that were lost during past few years.
He also said that, the government should also clear up industry's pending arrears, of two quarters totaling to around Rs.15 billion, as early as possible.
Both the regions, India and EU, are in talks regarding FTA since sometime, but they have not been able to make progress in certain issues like imposing zero duty on certain goods, which need to be resolved at the highest level. EU has vast potential for value-added textile exports which currently attract a 10 percent levy, said Mr. Velayutham.
Home-textiles and finished products contribute around 12 percent to the overall textile exports worth above $21 billion, of which EU accounts for around $7 billion i.e. 33 percent of the market potential. He lamented the fact that, cotton textile exports that once grew by 29 percent, registered a downward trend in falling by 10 percent to $5 billion last year, he added by saying.
Vice-Chairman of Texprocil, Mr. Manickam Ramaswami stated that lack of export incentives as well as improper government policies are considered as the major causes for dwindling exports.
Fibre2fashion News Desk - India