New Delhi: Customs duty advantage under India-Australia FTA will help India skin exporters have greater market access in that country than their competitors, AEPC said on Tuesday. The Agreement entered into force on December 29.
Garment Export Promotion Council (AEPC) Vice President Sudhir Sekhri said Australia is the largest apparel importer in the Southern Hemisphere.
While China’s share of apparel imports into Australia is more than 70%, India’s share is just under 5%.
“With the India-Australia ECTA (Economic and Trade Cooperation Agreement) going live, India will have a slight tax advantage over it,” he said. Vietnam and Indonesia for imports in the Australian market”.
India’s ready-to-wear exports to Australia have grown by an average of 11.84% over the past five years, “purely due to China Plus One Strategy accepted by most countries,” he added.
Following this growth trend and with the agreement coming into effect, AEPC believes that exports to Australia will triple by 2025, the Vice President said.
An outreach program to garment exporters was organized on Tuesday by Department of Commerce affiliated with AEPC and Okhla Textile Cluster (OGTC).
OGTC PMS President Uppal said most major Australian companies have deep roots in China and they would only see India as an option if “we offer them attractive and reasonable offers”. due to turn to India for sourcing for their requirements”.
The government has assured the AEPC that it will consider the challenges and respond positively.