India’s garment sector harmed by lack of FTAs

05/07/2016
A study from Ernst & Young has found that a lack of Free Trade Agreements (FTAs) with the EU, Australia and Canada means that India’s textiles and garment sector is missing out on a potential 5.5 million jobs. These jobs would be generated by additional exports stimulated by the FTAs.

The report, entitled “The textile industry is a vehicle of job creation for inclusive growth”, was commissioned by the Cotton Textiles Export Promotion Council (Texprocil) and highlighted the size and capacity to generate employment of India’s textile industry. It added that the industry had a vital role in the employment of women.

R.K. Dalmia, Texprocil chairman, emphasised the importance of finalising FTAs with the EU, Australia and Canada as well as negotiating a concessional tariff with China to ensure Indian supplier are not at a disadvantage to their competitors.