14 August 2023, Mumbai
Context setting
India's textile sector is a major driver of the economy, providing employment to millions of people and generating billions of dollars in export revenue.
The sector is highly diverse, with a wide range of products and services, from traditional handwoven fabrics to cutting-edge textiles.
It is also highly competitive, with a large number of small and medium-sized enterprises.
India's textile sector is a major driver of the economy, providing employment to millions and generating billions in export revenue. It is facing challenges, but the India-EU FTA could help it become a global leader.
Export Performance
India is a major exporter of textiles, with exports worth $7.3 billion in 2022.
The EU is a major destination for Indian textiles, accounting for 9% of India's total textile exports.
However, Indian textiles face stiff competition from other countries, such as Bangladesh and Vietnam, which have preferential tariff arrangements with the EU.
India-EU Free Trade Agreement
India is negotiating a free trade agreement (FTA) with the EU, which would eliminate tariffs on textiles and other products.
The FTA would also address other issues important to the textile sector, such as sustainability and intellectual property rights.
Conclusion
The India-EU FTA has the potential to boost the Indian textile sector and help it become a global leader.
The sector is facing some challenges, such as rising costs and competition from other countries. However, it is also well-positioned to take advantage of the opportunities offered by the FTA.
Additional Points
India has one of the world's oldest textile traditions, dating back thousands of years.
The textile sector is a major employer in India, providing jobs to millions of people.
The sector is a major source of foreign exchange earnings for India, generating billions of dollars in export revenue each year.
The sector is facing some challenges, such as rising costs and competition from other countries. However, it is also well-positioned to take advantage of the opportunities offered by the global economy.
The Indian textile sector is a key driver of the economy and has the potential to play a leading role in the global textile industry. The India-EU FTA is a major opportunity for the sector to grow and prosper.
