Textile exports to gain from EU gesture

By Our Special Correspondent

NEW DELHI, SEPT. 15. The country's textile exports, struggling under the impact of the dismantling of the multi-fibre arrangement, have received an unexpected boost of Rs. 300 crores. Government officials feel India could get additional export orders for Rs. 400 crores in the near future. The increase in exports by Rs. 300 crores takes place following the decision by the European Union (EU) to release 3,500 tonnes of exceptional flexibilities for several textile products imported from India, stated an official release here today.

According to the Union Textile Minister, Mr. Kashi Ram Rana, the successful settlement of the tariff binding issue with the EU could also result in the release of another 4,500 tonnes of exceptional flexibilities this year and automatic release of 8,000 tonnes during the remaining three years of the textile quota regime.

The release of exceptional flexibility (which refers to using the quota of one category in some other category) was decided by the EU at a meeting in Brussels on September 13 following concerted efforts by the Indian Government for the last one year. Following the conclusion of the consultations, the EU has now released 3,500 tonnes of exceptional flexibilities which will enable Indian exporters to ship additional quantities of 50 lakh pieces of T-shirts, 10 lakh pieces of jerseys/pull overs, 20 lakh pieces of trousers/shirts and 33 lakh pieces of ladies dresses besides substantial quantities of yarn and fabric.

The Government had initiated efforts in this direction at a summit meeting with the EU in Lisbon in June last. This was followed up with consultations in July this year during which an agreement was reached on the tariff bindings notified by India to the WTO with regard to the MoU on textiles signed between India and the EU in 1994 which stipulated the release of flexibilities in exchange for tariff bindings.

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Section  : Business
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