The UAE is the gateway to Africa and the Arab world and Australia is a large continent with a growing market. The industries in Tamil Nadu are optimistic about exports to both regions.
India signed Free Trade Agreements (FTA) with both countries in 2022 and they have shown their effects for several months.
Chairman, Confederation of Indian Industry (CII) Tamil Nadu, Satyakam Arya said textiles, leather and footwear are among the industries which would benefit from the FTAs.
“The ‘India-UAE Startup Bridge’ would act as a one-stop platform where information will be easily accessible to entrepreneurs and stakeholders from both countries. Tamil Nadu with its strong ecosystem for start-ups and entrepreneurship will benefit immensely,” he said.
Around US $ 253 million worth of readymade garments were exported by Tamil Nadu to the UAE and Australia from April to November last year. UAE accounted for around US $ 159 million from this amount alone.
Federation of Indian Export Organisations President, A Sakthviel, said that the apparel trade between India, UAE and Australia is likely to double in three years.
“We are positive the two FTAs will benefit Tamil Nadu. Australian buyers are showing a keen interest in importing readymade garments from the state. There are several businesses in the UAE that source readymade garments from India and export them to Gulf Cooperation Council (GCC) countries. Against this backdrop, duty-free access to the UAE will boost apparel exports from Tamil Nadu,” he added.
The export of finished leather products from India to the two countries is expected to boom. Tamil Nadu already accounts for 50-60 per cent of the total leather exports from India. The share of Australia and UAE from India’s US $ 5 billion worth of leather exports, is barely US $ 200 million.
According to Yavar Dhala, Executive Committee Member of the Indian Finished Leather Manufacturers and Exporters Association, this amount will rise to US $ 400 million within two to three years.
“The FTAs facilitate zero duty, paving the way for Indian leather products to become competitive when compared with leather goods sourced from Italy and western Europe. The two countries will increase their leather purchase from India,” he added.
