Representatives of the Tirupur Exporters’ Association (TEA) recently met Indian textiles minister Smriti Irani in New Delhi and requested her for increasing the rates of duty drawback, rebate of State levies (ROSL) and interest equalization scheme to bail the knitwear exporting units out of crisis. A letter signed by TEA President Raja M Shanmugham was delivered to her.
TEA explained the need for India to sign as quickly as possible free trade agreements with the European Union (EU), the United States and the United Kingdom, a comprehensive economic partnership agreement (CEPA) with Australia and a comprehensive economic cooperation agreement (CECA) with Canada to have a level playing field in the global market to counter increasing Chinese investment in India’s neighbouring countries.
China is silently entering India using the advantages made available to Bangladesh, Vietnam, Cambodia, Sri Lanka and Myanmar by the EU and the United States, TEA alleged in the letter. The association requested research and development support to the Tiruppur cluster, primarily for product diversification and also strengthen the design capabilities.