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Govt plans steps to tackle textile regime

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Monica Gupta New Delhi
Last Updated : Feb 06 2013 | 5:00 PM IST
With the quota regime set to end on December 31, the textiles ministry is considering leveraging India's bilateral and regional trade agreements to obtain duty concessions for textile products such as apparel and made-ups.
 
The move is among a series of measures being examined by the ministry to tackle the post-quota regime.
 
"Textiles is a very important component in the free trade and preferential trade negotiations. In return for obtaining duty concessions from other countries on items like apparel and furnishings we could offer concessions to them on their high end textile products," an official said.
 
Another option being examined by the ministry is to enter into negotiations with countries bordering the European Union since it is the most important market after the US for Indian textile products.
 
"Countries in the Commonwealth of states or in northern Africa are keen to have Indian technology in textiles. We could establish a presence in these countries and then take advantage of their proximity to the EU to strengthen our market there," an official said.
 
In addition to these measures, the government is also working on restructuring the role of the various textiles related export promotion councils.
 
"We are considering merging the existing councils so that there are only three or four main councils representing the various segments of the industry," an official said.
 
He added, councils would also shift their emphasis to organising fairs, setting up of permanent trade marts and design centres once the quotas were removed.
 
The ministry is also keen to step up investment in apparel parks and increase allocation under the Technology Upgradation Fund Scheme to upgrade technology.
 
Several studies including a study by the World Trade Organisation has concluded that India and China could be the biggest gainers of the post-quota regime.
 
While China is expected to be the biggest beneficiary in the post-quota regime from January 2005, India is projected to be next in line.
 
As per government estimates, India's textiles exports could increase by at least 25-30 per cent from the next financial year. International buyers, particularly retail chains, are already lining up to take advantage of the situation and are booking larger orders for 2005.

 

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First Published: Oct 16 2004 | 12:00 AM IST

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