The Indian ready-made garment sector continues to enjoy 20 per cent tariff preference for the next three years from 2017-19. With China being removed from the list of beneficiaries; the Indian Products with duty preference will definitively have an edge in the European market. The exports to EU from India is 36 per cent of the total exports of RMG.
The European Union recently announced its scheme of generalized tariff preferences for the next three years from 2017-19. Indian ready-made garments sector continues to enjoy its position of being a beneficiary under the current scheme which has affected the textile sector through removal of this tariff preference. Section 11 (b) of the EU GSP provides for trade preferences for the ready-made garments sector.
As of now, the trade preferences which India enjoys with the EU, under the Generalized Scheme of Preferences, has been extended for a period of three years from 2017-19. Under this extension India’s RMG sector will continue to get 20 per cent tariff preference on exports to EU for three consecutive years. RMG sector will be highly benefited from this extension of trade preferences.
AEPC, the apex body of apparel exporters, expressed happiness at the continuation of the 20 per cent tariff preference to Indian imports. China has been removed from the list of beneficiaries.
AEPC chairman, Ashok G Rajani said, “Our endeavor now is signing of FTA with EU as early as possible.”
