The Cotton Textiles Export Promotion Council (TEXPROCIL) has urged Government to take immediate steps in formulating a free trade agreement (FTA) with the UK.
Welcoming the exit of Britain from the EU on 1 January 2021 after a negotiated settlement, Manoj Patodia, Chairman, TEXPROCIL, said that the UK is one of India’s largest trading partners amongst the European countries in the Textile and Clothing (T&C) sector accounting for almost 24 per cent of the T&C products exported from India to the EU region.
Any further delay will only serve to hamper India’s T&C exports as the competing countries will surge ahead.
India’s exports to the EU have been stagnating over the last 6 years, while countries like Bangladesh, Vietnam and Pakistan have shown positive export growth to EU during the same period.
There are reports that UK has already signed trade agreements with 62 countries ahead of the end of the Brexit transition period on 1 January 2021, including countries like Turkey, Canada, Singapore, Mexico, etc.
It, therefore, becomes all the more imperative for India to commence the process of negotiations without any delay as India may lose the first mover advantage and consequent market share.
The Chairman also requested the Government to simultaneously revive and expedite the FTA negotiation with the EU, as it is one the leading markets for India’s exports of T&C products where competing countries like Bangladesh, Pakistan and Vietnam have an edge over India due to a zero tariff arrangement.
Bharat Tex Special Report 2026 
