CITI Pleads With Centre To Obtain Duty-Free Access To Chinese Markets

Trade & Policy

CITI Pleads With Centre To Obtain Duty-Free Access To Chinese Markets

The Union government has been urged by the Confederation of Indian Textile Industry (CITI) for conducting negotiations with China to acquire duty-free access for Indian cotton textiles in the Chinese markets. It was pointed out to the centre that other competing nations like Vietnam, Indonesia, Pakistan and Cambodia already have duty free access.

It may be recalled that India had been the net exporter of textile goods to China 2010-11 to 2013-14. CITI Chairman Sanjay Jain, in a written communication to the government stated, "However, this 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."

Jain intimated the government that Indian textile goods carry 3.5 percent, 10 percent and 14 percent duty on yarn, fabric and made-ups, respectively. He further stated in his communication, "India's cotton yarn exports to China has decreased by 53 per cent in 2017 from 2013, while Vietnam's exports of cotton yarn to China has increased by about 88 per cent during the same period."

“India exported USD 1,362 million worth of textile and apparel products to China in 2017-18, while the country's imports from China stood at USD 2,905 million, indicating a trade deficit of USD 1,543 million,” he added in his written letter.

"Therefore, the textile industry body has urged the government to push negotiations with China to give duty-free access to Indian cotton textiles," the communication concluded.