| Date: |
18-03-2015 |
| Subject: |
TEA seeks PM Modi's intervention to expedite FTA with European Union |
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COIMBATORE: Tirupur Exporters' Association today said Prime Minister Narendra Modi should ask the Commerce Ministry to expedite negotiation to implement the Free Trade Agreement (FTA) with the European Union.
It suggested that a discussion along this line may be initiated during the PM's visit next month to EU.
In a letter to Prime Minister, a copy of which was released to the press, TEA president A Shaktivel said 'Make in India' vision is apparently fulfilled by the ready-made garment (RMG) sector as it uses minimal inputs from imported items.
The entire production takes place in India and provides employment to lakhs of people, mainly women workers and semi-literate people, hailing from rural areas.
The sector has exported RMG worth USD 15 billion in 2013-14, of which USD 6.22 billion of garment was destined to EU and still has the potential to enhance exports to EU once a level playing field was provided to the sector, he said.
Stating that the sector is happy over a huge improvement in business relations over a period of time with European buyers and repeat orders had become the norm for most garment units, Shaktivel said export units had also elevated their strength to fulfill customers' stringent quality requirements.
"Being compliance oriented units, we are confident that we can edge over our competing countries and increase our market share significantly once FTA is implemented," he said.
Fifty five per cent of the total exports from Tirupur, worth about USD 1.6 billion, is shipped to EU, he added.
The EU market plays a crucial role in garment exports and enhancement of exports to EU would directly help create more employment in the domestic market, mainly for women and semi-literate workers from rural areas, after fulfilling the 'Make in India' vision, Shaktivel said.
Moreover, it is right time to have FTA with EU as major competing countries like China and Bangladesh are undergoing problems, he added.
Source : economictimes.indiatimes.com
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