India and Iran to become Partners in RMG Trade

India And Iran To Become Partners In RMG Trade

A delegation of Apparel Export Promotion Council (AEPC) led by its chairman Ashok G Rajani recently visited Iran to understand the market there after removal of sanctions.

Sharing the experience of the visit Rajani said, “The warmth and positive attitude towards India among the members of the trade associations and government representatives augurs well for trade promotion between the two countries. Although the economy and trade is still recovering from the impact of the sanctions, there is market for simple but stylish apparel products, which AEPC plans to tap.”

India’s share in Iran’s RMG import was 2.5 per cent in 2015, thus there is an impeccable possibility for India to capture the growing Iranian market. Iran’s RMG import from around the world has shown a growth of 43.3 per cent in 2015 which has increased to 825.9 million US Dollar in 2015 from 576.2 million US Dollar in 2014. “Although it is small market at present, there is scope for growth in the immediate future and we want India to be an important partner in this growth,” Rajani said. The council has drawn its export promotion programme for the year 2016-17 with a view to achieving an export performance of 18750 million US Dollar in the year 2016-17.

Meetings with Iran Textile Export Association, Tehran Chamber of Commerce and Tehran Textile Union discussed on how to reduce tariffs and facilitate market access.  Incidentally, Iran has seen a progressive reduction in tariffs from 300per cent during sanctions to the present 55per cent. The high tariffs had resulted in “unofficial” imports being over 10 times the volume of “official” imports. Hence the Trade associations have been working with the government for reduction in import duties to international levels.

This visit reaped high hopes for the Indian RMG exports, Mrs. Nasrollahi, general director of textile & clothing, ministry of industries, of the Islamic Republic of Iran has said. “India has a lot to offer and could complete the apparel value chain in Iran.” Chairman, AEPC extended an invitation to Nasrollahi and other senior dignitaries to be present in the July edition of India International Garment Fair, hosted by AEPC twice a year.