Kolkata, Jan 28 (PTI) The India-EU trade agreement will significantly benefit the domestic hosiery, garment and textile industry, particularly clusters in eastern India, West Bengal Hosiery Association
vice-president Ramesh Agarwal said on Wednesday.
He said garments and hosiery are likely to emerge as key beneficiaries once the trade pact becomes operational, as it would improve market access for Indian exporters in Europe. "West Bengal as a state will also benefit a lot," he said.
Agarwal, however, pointed out that despite the agreement being signed, its implementation could take more than a year as it requires parliamentary approval from individual European Union member countries.
"Once implemented, the EU-India trade deal will give Indian textile exporters a competitive edge over Bangladesh in the European market," Agarwal said, adding that the advantage has become more relevant in view of the current situation in the neighbouring country.
Agarwal also flagged concerns over strained India-trade relations, which he said have adversely impacted the textile sector.
According to him, exports worth nearly USD 8 billion to the US have been affected, creating serious challenges for exporters, including labour retention issues.
On export prospects, Agarwal said India's textile exports could rise sharply if two pending trade agreements are concluded. "Exports can grow from around Rs 75,000 crore to Rs 3 lakh crore, with scope for further expansion if access to the US market improves," he said.
The EU-India trade deal is touted as a landmark free trade agreement after years of negotiations, aimed at deepening economic ties between India and the European Union, together a market of almost two billion consumers and one of the world's largest trading relationships.
Sharing his expectations ahead of the Union Budget, Agarwal said the industry is primarily looking at taxation reforms that enhance middle-class spending power, which would support domestic demand.
However, he added that frequent policy changes have reduced the long-term impact of budgetary announcements on the sector. PTI BSM MNB
