Prashant Agarwal, joint managing director of Wazir Advisors, moderated a technical session on India’s trade agreements with major economies during the tenth edition of Asian Textile Conference (ATEXCON). He said that India is very vast market. If it signs an FTA with any country, it has to allow concessional import which will increase competition for domestic industry. FTA can open new markets for domestic industry only when it is ready to face domestic competition in the destination country.
The Indian textile industry must keep in mind that Free Trade Agreements (FTAs) are two-way arrangements between the countries, and it will have to prepare itself to get benefits from FTAs. It also needs to be ready to face competition because the agreements will allow imports, experts said during a technical session on international trade agreements.
Updeep Singh Chatrath, president & CEO of Sutlej Textile and Industries Ltd, said that FTAs can be enabler, but the industry will have to work hard to fulfil needs of buyers. He said that his company had set up factory in NAFTA region (Mexico), but it could not satisfy buyers’ requirements. He also highlighted to serve the need of customers which are unserved.
Dr. Siddhartha Rajagopal, executive director of The Cotton Textile Export Promotion Council (TEXPROCIL), said that FTAs provide tariff benefits and other relaxations, but the industry can benefit only if it is prepared for the same.
Fibre2Fashion News Desk (KUL)