Narendra Modi assures TEA for free trade agreement with EU
PM Narendra Modi assured that government of India will take action on FTA’s ( Free Trade agreement ) with the European Union on pre-meeting held with Dr A Sakthivel, President, Tirupur Exporters Association (TEA) along with Mr B Shanmugasundaram, General Secretary and Mr P. Balasubramaniam, EC Member. In the brief meeting, Member of TEA thanked the prime minister for extending MEIS to additional 138 countries & amending 3% Interest equalisation TUF Scheme for merchandise exports over 5 years.
The intention of a request over the free trade agreement with the European Union is to counter the main competition of India’s garment exports “Bangladesh” which exported goods worth of $15 Billion to the European Union in 2014-2015 with the help of duty-free market status of Bangladesh. Bangladesh garment exports stood at $26 Billion in 2014-2015 against India’s $16.85 Billion.
FTA with EU is the major demand for exporters in Tirupur to double the garment exports target in next three years. IF FTA with EU, CECA with Australia & CEPA with Canada is sealed by India, Garment Exports from India would bump from 2015-2016’s 1.12 Lakh Crore to 2.28 Lakh crore in end of the three years in 2019-2020. Ready Made Garment valuing over $8.56 Billion has been exported to the European union in the first half of 2015.
TEA Members and exporters in Tirupur stressed that Bangladesh number can be achieved once we achieve free trade agreement with the European Union. TEA Memorandum to the prime minister Narendra Modi also stressed CECA ( Comprehensive Economic Cooperation Agreement ) with Australia and CEPA (Comprehensive Economic Partnership Agreement) with Canada agreements with respective countries to boost the growth of garment exporters in Tirupur.