The Confederation of Indian Textile Industry (CITI) has written to the government to ask China to provide duty-free access for India’s cotton textiles to compete with rival countries, including Vietnam, Indonesia, Pakistan and Cambodia.
Absence of duty-free access to China has adversely impacted India’s business as compared to its rivals, explained CITI in its letter.
Those who enjoy duty-free access to China have pushed India from being net exporter of textile and apparel products to the country during 2010-11 to 2013-14.
Yarn, fabric and made-ups export from India to China attracts 3.5 per cent, 10 per cent and 14 per cent duty respectively.
“Cotton yarn export from India declined by 53 per cent in 2017 as compared to 2013 while Vietnam witnessed 88 per cent increase in exports of cotton yarn to China in the same period,” said Jain
In view of trade deficit observed in 2017-18, CITI urged government to expedite talks with China for duty free access to Indian cotton textiles to the country.
India observed a trade deficit of USD 1,543 million as India exported textile and apparel products worth USD 1,362 while Chinese import stood at USD 2,905 million in 2017-18.
Markedly, CITI is the apex industry chamber representing all the sub-sectors of the textile sector with over 4,000 direct and indirect members.
