The ninth round of negotiations between India and the European Union (EU) on a Free Trade Agreement (FTA) is set to focus on addressing key issues, including duty relief on textile products. This ongoing FTA negotiation, part of the broader India-EU Bilateral Trade and Investment Agreement (BTIA), seeks to reduce or eliminate tariffs on several products, including textiles, a significant export item for India.
Source:- bbc news
Textiles and garments have long been vital to India’s economy, contributing significantly to its export revenue. However, Indian textile exporters face stiff competition from countries with preferential trade agreements with the EU, such as Bangladesh and Vietnam, which enjoy duty-free or reduced tariff access to the European market. India’s textile industry has been pushing for duty concessions to level the playing field, especially for products like cotton and synthetic textiles, which currently attract tariffs ranging from 8-12%.
Source:- news 18
Duty relief on textiles is expected to enhance India’s competitiveness in the European market, which is one of its largest trading partners. Europe is a key destination for Indian textiles, with the EU accounting for about 18-20% of India’s textile exports. By addressing tariffs, the FTA could unlock greater opportunities for India’s textile manufacturers, potentially increasing export volumes and driving job creation in the sector.
In addition to textiles, the India-EU FTA discussions cover other areas, such as services, investment, intellectual property rights, and sustainable development. A successful conclusion of the talks could lead to increased bilateral trade, which stood at $140 billion in 2023. While both parties have made progress, challenges remain, including differences over market access, regulatory standards, and sustainability commitments. However, the focus on textile duty relief is seen as a positive step toward narrowing the gaps in negotiations.
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