Industry & Economy
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Textiles
`Zero-for-zero approach could be best bet in post-MFA regime'
Our Bureau
New Delhi
,
March 24
A zero-for-zero approach in textile and apparel tariffs could be the best bet for India in a post multi-fibre agreement (MFA) world from early 2005, according to the Textile Commissioner, Mr Subodh Kumar.
Addressing the annual general meeting of the Northern India Textile Mills' Association (NITMA), Mr Kumar highlighted that a zero-for-zero approach would help in nullifying the benefits of the free trade agreements that have been entered into between various countries. (A zero-for-zero approach means that a country would adopt nil rate import tariffs on the textile products so long as the country it has negotiated with also adopts zero (nil) rate on the textiles imported by it.)
He also asked the domestic industry to continuously invest in "processing", stating that such investments would be a paying proposition for them. "If you do not invest in processing and consolidate various segments, our share in world textiles trade would only remain at about four per cent in 2010 as against the current level of three per cent," he said.
Mr Kumar agreed with the NITMA President, Mr Sachit Jain's viewpoint that hank yarn obligation has no place in the current environment. "It has no economic logic. It should not be there," he said.
For India to achieve 10 per cent of world trade in textiles and apparels, Mr Jain suggested that there should be a greater emphasis on consolidation of various segments of the industry to make them compact and competitive.
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