Indian textile sector eyes strong presence in EFTA after trade pact

12 Mar '24

2 min read

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Insights

Indian textile industry is set to enhance its footprint in EFTA nations—Norway, Switzerland, Iceland and Liechtenstein—following a new Trade and Economic Partnership Agreement.
This pact is expected to significantly impact the industry's growth by improving access to these affluent markets and fostering technological advancements critical for modernisation.

The Indian textile industry is optimistic about expanding its presence within the European Free Trade Association (EFTA), comprising Norway, Switzerland, Iceland and Liechtenstein, following the signing of a Trade and Economic Partnership Agreement with EFTA. Such an agreement not only facilitates enhanced access to these advanced economies for the Indian textile sector but also opens doors to the latest technological advancements, pivotal for the modernisation of the industry.

EFTA comprises countries such as Iceland, Liechtenstein, Norway, and Switzerland. All these countries are key trade partners for the Indian textile sector. Rakesh Mehra, Chairman, Confederation of Indian Textile Industry (CITI) said in a press statement, “The significant impact from the agreement is expected to have on the growth trajectory of the Indian textile industry. He emphasised its role in providing critical inputs, fostering technological innovation, and creating opportunities for product development.

The EFTA countries are key trade partners for the Indian textile sector. Rakesh Mehra, chairman of the Confederation of Indian Textile Industry (CITI), said in a press statement, “The upcoming India-EFTA agreement, will further catalyse the growth of the Indian Textile Industry, especially in terms of critical inputs, technology, and product development opportunities.”

He further said that while the EFTA is an important trade bloc for the Indian textile industry, CITI had been requesting the Government to expedite the signing of FTA with Switzerland as both India and Switzerland complement the needs of each other in the textile and apparel space as India imports technology and machines from Switzerland while Switzerland offers itself as a buyer for raw materials and intermediate products, to be converted into high-quality and sustainable end products.

A trader told Fibre2Fashion, “The signing of the trade agreement will drive modernisation in the textile industry. Although the member countries of EFTA are relatively small, they are developed economies with high purchasing power, and the industry is looking for a better presence in these markets.

Fibre2Fashion News Desk (KUL)

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