Tariff relief under FTAs to make Indian textile products highly competitive against countries like Pakistan and Bangladesh, say industry leaders

Coimbatore (Tamil Nadu) [India], September 3 (ANI): Indian products have become highly competitive against competitors like Pakistan and Bangladesh following duty relief secured under recent trade pacts, according to textile industry leaders. 

Speaking to ANI on the sidelines of the Free Trade Agreement (FTA) Outreach Programme, industry representatives explained that export promotion councils have taken steps to inform domestic manufacturers about duty benefits, regulatory frameworks, and operational shifts across key manufacturing clusters in the country.

Cotton Textiles Export Promotion Council (TEXPROCIL) Additional Director Shailesh Martis stated that recent trade pacts helped domestic goods overcome steep disadvantageous tariffs in major international markets.

“Now with the UK FTA, a significant tariff gap has been bridged; previously, our goods were subject to duties ranging from 9.6 to 12 per cent, which will now become zero. Exporters will definitely capitalise on this advantage, making Indian products highly competitive against countries like Pakistan and Bangladesh, which have enjoyed zero-duty benefits for a long time,” Martis said.

He noted that outbound shipments face further upside once other key agreements become fully active across European destinations.

“Regarding the European Union, the FTA has been signed, and we are eagerly awaiting its implementation. Once operationalised, our products, primarily home textiles and apparel that are exported there in large volumes, will gain a 9.6 to 12 per cent duty advantage. This enables exporters to leverage these FTAs based on the specific products they export,” Martis added.

The outreach drive itself stemmed from central government directives aimed at assisting exporters with trade policy changes. He stated that the FTA outreach program covered select manufacturing hubs before expanding further inland.

“Accordingly, all textile Export Promotion Councils (EPCs) are organising these outreach programs in different clusters. Coimbatore is the second cluster where we have organised this program, following our first session in Ahmedabad in June. Going forward, we will conduct these programs in several other clusters, including Ichalkaranji, Solapur, Panipat, and Jaipur,” Martis said.

Powerloom Development & Export Promotion Council (PDEXCIL) member R. Sivalingam also addressed the scope of the drive in Coimbatore.

“We are organizing this FTA outreach program in Coimbatore. This is the second program being organised, and it is one of the best initiatives for all exporters,” Sivalingam said.

He added that clarifying ground-level trade mechanisms remained the focal point of the sessions.

“The primary objective of this program is to create awareness among exporters by addressing all operational aspects, product requirements, and regulatory frameworks. It will certainly help exporters increase their shipments and expand their knowledge regarding international trade opportunities,” Sivalingam noted. (ANI)

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