The renewal of trade talks with the European Union would lead to a substantial boost in exports in the coming days, anticipate textile companies.
Manoj Patodia, Chairman of the Cotton Textiles Export Promotion Council said resuming the long pending negotiations will benefit the bilateral trade between India and the European Union as it is the single largest region importing textile and clothing products in the world, accounting for $131 billion last year.
Of the overall imports by Europe, India accounted for just 4 per cent while Bangladesh, which enjoys zero duty tariff, accounted for about 11 per cent.
If duty-free tariff advantage is extended to India under the proposed broad-based Trade and Investment Agreement, it will go a long way in increasing the export of textile and clothing from India to the European Union trading block, he added.
India is unable to increase its market share over the years mainly over duty disadvantage compared to competing countries such as Pakistan, Sri Lanka and Vietnam, said Patodia.
The average tariff applied on imports from India into the EU was about 9.6 per cent for textile and clothing products, he added. Most of the importers in Europe are compelled to buy from other competing countries due to the big duty gap, he added