India pitches for greater systematic trade in textiles with Asean

India on Tuesday pitched for greater systematic trade in textiles with the Association of Southeast Asian Nations (Asean).

“India can be a one-stop sourcing destination for textile materials from Asean,” Textile Minister Smriti Irani told a large contingent of business leaders at an event organised by industry body Ficci. 

The minister also touched upon the spectre of cheaper Chinese materials as well as finished products flooding the Asean markets. “They cannot compete with the rich legacy of our handlooms,” she said.

To this end, a unique fashion show was organised here on Tuesday by Ficci, whereby traditional fabrics from both India and Asean members were showcased by young designers from both sides.

In the last financial year, India’s textiles exports to the region stood at $1.20 billion, while imports totalled $546 million.

“With a strong multi-fibre base, and an abundant supply of raw materials like cotton, wool, silk, jute and man-made fibres, India enjoyed a distinct advantage of backward integration that many countries do not possess,” Textiles Secretary Anant Kumar Singh said. 

He said despite the operation of the free trade agreement (FTA) in goods with Asean, India’s exports of textiles and apparels to the region have virtually been constant in the past few years and had not shown much traction. 

Though India has a unique advantage of having the presence of the entire textile value chain, its most exported items to Asean consisting of cotton fibre, cotton yarn and fabrics have not grown to the desired extent, he added. The government has admitted that Indian exporters have not been able to explore and leverage the terms of trade deal to its fullest.

It is also looking for ways to create a robust framework to export textiles and apparel to the Asean markets, and further to China, Northeast Asia and the European Union (EU) through their various trade agreements.

Investors have the opportunity of entering the entire value chain of synthetics, value-added and specialty fabrics, fabric processing and technical textiles.

A day back, trade and economy ministers from seven nations in the 10-country bloc alluded to speedy conclusion of the Regional Comprehensive Economic Partnership (RCEP) pact as a necessity. However, the Indian government said the sensitivities of all nations — services trade in its case — needed to be first taken into account.

RCEP is a proposed FTA among the 10 countries of Asean and six others with which it has trade agreements — Australia, China, India, Japan, South Korea and New Zealand. The deal had earlier been held up due to disagreement over eliminating tariffs on goods trade, a subject on which India has come under increasing opposition from other nations. Now, led by Asean, these countries want that tariffs on almost 92 per cent of all traded goods be reduced or eliminated.