India-Asean export framework needed

ASEAN industry has been urged to leverage India’s strengths in textile value chain by setting up manufacturing and export businesses in the country.

The call was made by Textiles Minister Smriti Zubin Irani who underlined India’s strengths in all textile products.

She offered to the ASEAN countries a one-stop sourcing destination for a diverse range of products.

“ASEAN industry could take advantage of this by setting up manufacturing bases in India to cater to the domestic market and exports,” said the Minister.

Irani said that partnership between India and ASEAN was crucial for improving the standard of textile manufacturing and providing wage opportunities in both regions.

The Minister was addressiing the ‘India-ASEAN: Weaving Textile Relations’ which was organized in New Delhi by the Federation of Indian Chambers of Commerce and Industry (FICCI) on 23 Jan 2018.

India was strong and competitive across the entire value chain starting from raw materials to finished products, added Anant Kumar Singh, Secretary of Textiles Ministry.

The scope for investment in India was immense in the entire value chain of synthetics, value added and speciality fabrics, fabric processing and technical textiles, he stressed.

With a strong multi-fibre base with an abundant supply of raw materials like cotton, wool, silk, jute and man-made fibres, India enjoyed a distinct advantage of backward integration which many countries do not possess, he pointed out.

“Though India has the 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.

“This makes it evident that we have not been able to explore and leverage the strengths of our textiles industry to the fullest,” he pointed out.

He stressed the need for a robust framework for export of textiles and apparels between the two sides to give a fillip to trade.

Singh said that ASEAN countries have a unique position in the regional value chains and offer a gateway for market access to China, North East Asia and the EU for India through their various trade agreements.

Furthermore, there exists an opportunity for ASEAN textile manufacturers to invest in manufacturing in India to cater to both the domestic market and exports, he said. fii-news.com