Following a decline in India’s exports last month for the ninth straight month by 20.66% over August 2014, textile exporters are encouraging the government to create free trade agreements (FTAs) with the EU, Australia and Canada in order to eliminate trade barriers and gain market access into these countries.
The Chairman of the Cotton Textiles Export Promotion Council (Texprocil), Shri R.K. Dalmia, is also urging the government to begin talks with China and Turkey for a potential reduction in the import duties imposed on Indian textiles.
India’s cotton textile exports also experienced a negative growth of 7.39% in August. Exports totaled $863.18 billion compared to $932.02 billion in 2014.
“This continuing decline in exports of cotton textiles is a matter of deep disappointment and concern requiring urgent action from the Govt,” Dalmia said.
Although Indian cotton textile products were competitive in the world markets, preferential access given to Bangladesh, Cambodia, Pakistan, South Korea, Turkey and Vietnam by major importing countries, including the EU, is significantly affecting exports. Discriminatory import duties on India’s textiles in China and Canada are influencing exports as well.