Textile associations in Coimbatore and Tiruppur districts are hopeful that India will sign a free trade agreement (FTA) with the United Kingdom at the earliest, buoyed by the news of Indian-origin Rishi Sunak becoming the UK prime minister.
According to Tiruppur Exporters Association President KM Subramaniam, there are positive signs that FTAs will be expedited. As the new government in the UK stabilizes, the association will join hands with other organizations such as FIEO and AEPC and submit a memorandum to the Indian government to expedite the FTA. Indian clothing now attracts around 11% duty in UK and with FTA, India will become competitive with countries like Bangladesh. He added that if the FTA is signed with the UK, the country’s share in exports from Tiruppur would increase to 30%.
President of the Association of Buying Agents for Textiles V. Elangovan said since Tiruppur accounts for around 20% of apparel exports to the UK, signing an FTA with the UK will increase exports by 10%, he said. Most of the work is over for the FTA and the rest must be expedited so that textile exports to the UK will boom.
The Confederation of Indian Textile Industry said, over the past year, exports of textiles and clothing to the UK have seen a decline mainly due to issues in that country’s economy. The textiles sector in particular will benefit from the FTA as it is a traditional market for Indian exporters.
According to the Southern India Mills Association, Indian textile goods in the UK attract an average 9% import duty. FTA will ensure duty free exports. Its general secretary K. “While non-tariff barriers remain a concern, there will be no tariff barriers once the FTA is signed,” Selvaaraju said.