: Apparel exporters appeal to PM for removal of duty disadvantage in UK #FinanceIndia #StockMarketNEWS New Delhi, Dec 21 (KNN) Apparel Export Promotion Council (AEPC) has requested Prime Minister Narendra

@StockMarketNEWS Tue 22 Dec, 2020

Posted in: #FinanceIndia #StockMarketNEWS

Apparel exporters appeal to PM for removal of duty disadvantage in UK #FinanceIndia #StockMarketNEWS
New Delhi, Dec 21 (KNN) Apparel Export Promotion Council (AEPC) has requested Prime Minister Narendra Modi to take up early execution of Free Trade Agreement (FTA) with the UK during the visit of Hon’ble Prime Minister of UK Boris Johnson to India in January 2021.

In a letter to Prime Minister on Monday, AEPC Chairman Dr A Sakthivel said that the apparel export industry, which is trying to come out of global stagnation and compete globally, is falling behind several competitors like Bangladesh, Cambodia and Pakistan due to duty disadvantage of 9. 6 percent in exporting to the UK.

“Total import of apparels in the UK in calendar year 2019 was USD 24. 9 billion. Out of this, imports from Bangladesh were USD 3. 6 billion, while it stood at USD 1. 4 billion for India,” he said.

The Chairman has appealed to the Prime Minister to initiate discussions for a fast-tracked FTA or, if it is not possible to enter into an FTA, then India should urgently negotiate and conclude Comprehensive Economic Partnership Agreement (CEPA) during Johnson’s visit to attend the Republic Day parade in New Delhi.

“Given the socio-economic dividends that the proposed FTA or alternatively CEPA holds for the apparel sector and the country, we request you to consider the matter for early discussions and conclusion of the same during your forthcoming meeting with the Hon’ble Prime Minister of UK,” Dr Sakthivel wrote in the letter.

India enjoys strong traditional ties and good connect with UK retailers, but the exporters are facing severe competition due to duty disadvantages arising out of benefits under Generalized System of Preferences (GSP) to 47 Least Developed Countries (LDCs) including Bangladesh, which will continue even beyond Brexit in January 2021.

“This is in spite of the fact that India has a complete value chain from fibre and yarn to fabrics and apparels, whereas Bangladesh has to import the raw materials. India is the second largest producer of cotton and manmade (MMF) fibre.

“If the issue of duty disadvantage in the UK is addressed, then we are likely to double our exports of apparels to the UK in two years time and consequently leading to huge job creations in the country. This will create employment in the entire value chain of the apparel sector, thereby benefiting farmers and industry,” Dr Sakthivel said.

Thanking the Minister for taking effective measures to bring the economy back on track, he said that while the recently announced Production Linked Incentive (PLI) will boost exports of MMF apparels, the deal with the UK will further accelerate export of medical textiles in which India has got second largest production capacity.