Indian textile industry will benefit from preferential tariff arrangements

by:JIYALI     2021-08-12
On Tuesday, Indian Prime Minister Manmohan Singh announced the implementation of the Zero Tariff Preferential Arrangement (DFTP) for the least developed countries, including African countries. This plan will promote the development of the Indian textile industry because the Indian textile industry can obtain relatively cheap cotton.   Tirupur Exporters Association President MrA. Sakthivel said that we can import zero-tariff cotton from Africa internationally, which will benefit the development of Indian textile manufacturing enterprises. He feels that Indian apparel companies will also benefit from it. They can develop the African market and increase market share through DFTP arrangements.   At present, the cotton purchased by the Indian textile industry in the international market bears a 10% import tariff. The textile industry has been demanding that the tariff be abolished, or the import tariff should be reduced by 50%, to reduce the cost of imported raw materials.  Cotton Textile Export Promotion Committee Chairman MrPremMalik said that now the DFTP route will allow the Indian textile industry to import African cotton without paying import duties, so the cost of raw materials will be reduced.  India insists that all garments exported from Africa that enjoy DFTP arrangements must comply with the rules of origin and minimum value-added requirements. Otherwise, African countries will be easily used by third countries, and third countries are likely to use the preferential routes arranged by DFTP to ship their products to the Indian market. Regarding the lowest value-added, whether it is yarn or fabric, the lowest value-added is 40%. The cost of supplying yarns and fabrics from India to Africa to produce clothing will be monitored.
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