India’s government gets encouragement from textiles body for duty free access to China

Sanjay Jain, chairman, CITI, said in a letter written to the government recently that, “However, the trend has been reversed constantly since then and India is losing business to nations like Vietnam, Indonesia, Pakistan and Cambodia, who enjoy duty-free access to the Chinese market.” He educated that Indian products carry 3.5 %, 10 % and 14 % duty on yarn, fabric and made-ups, respectively.

India exported USD 1362 million worth of textile and apparel products to China in 2017-18, while the country’s imports from China stood at USD 2905 million, indicating a trade deficit of USD 1543 million, he said.

He said that, “India’s cotton yarn exports to China has decreased by 53 % in 2017 from 2013, while Vietnam’s exports of cotton yarn to China has increased by about 88 % during the same period.”

He added that, “Therefore, the textile industry body has urged the government to push negotiations with China to give duty-free access to Indian cotton textiles.”

India was the net exporter of textile and apparel products to China during 2010-11 to 2013-14.

The Confederation of Indian Textile Industry (CITI) advised the Centre to negotiate with China for duty-free access to India’s cotton textiles as enjoyed by other competing nations, including Vietnam, Indonesia, Pakistan and last week.