The FTA is expected to boost exports from the current Rs 33,000 crore (US$330bn) annually to Rs 50,000 crore ($500bn) by 2025, according to A Shaktivel, president of India Knit Fair Association.
About 20% of knitwear and garments made in factories of Tirupur, Tamil Nadu, go to the UK out of a total Rs 33,000 crore ($330bn) annual exports with a growth rate of 20% year on year, Shaktivel told reporters in Tirupur.
Prime Minister Narendra Modi held a telephone conversation with UK Prime Minister Liz Truss earlier in September and exchanged views on further strengthening the India-UK comprehensive strategic partnership in all sectors. Both countries launched negotiations in January this year for the trade pact that aims to double bilateral trade to $100 billion by 2030.
The partnership between the two governments is expected to boost exports, as the majority of consumers and dealers prefer Indian goods for its quality, Shaktivel said. From Rs 33,000 crore ($330bn) worth exports this financial year, it is expected to increase to Rs 38,000 crore (US$380bn) by the next fiscal and reach Rs 50,000 crore ($500bn) by 2025, added KN Subramanian, the president of Tirupur Exporters’ Association.
In August this year, Euratex expressed support for an FTA, stating, “The FTA is an opportunity to establish a more sustainable and fair trading system, based on rules, global environmental and social standards, which are effectively respected by all.”
The Tirupur Exporters’ Association is organising the 48th Indian International Knit Fair in Tirupur from 12-14 October.