New Delhi, April 4 (KNN) The Economic Cooperation and Trade Agreement (ECTA) signed between India and Australia will help India explore its export potential of knitted jerseys, pullovers and t-shirts of man-made fibers which is a big chunk of Australian apparel imports, said Narendra Goenka, Chairman, Apparel Export Promotion Council (AEPC).

In Australia, jerseys, pullovers, cardigans, waist-coats and similar articles, knitted/ crocheted, of MMF have been the biggest apparel imports last year and the second position was taken by cotton t-shirts.

Welcoming the India- Australia ECTA, Goenka said, “Australia is the largest apparel importer in the southern hemisphere. Indian apparels currently face an average tariff of 4.8 per cent in Australia as against zero duty for apparels from China and Bangladesh. Duty free access to Indian apparels will bring us at par with global competitors and make our products competitive.”

Despite Australia’s dependency on China for its apparel imports, India has been able to retain its share of around 3 per cent of total apparel imports in Australia even though there was shrinkage in import orders from across the globe including Australia during Covid-19 pandemic, said AEPC chief.

Goenka opined that removal of the tariff differential in relation to China would further help the Indian garment industry to take advantage of the China Plus One strategy being embraced by many countries.

“Australia is a focus area for Indian apparel exports since similar products are manufactured in India at similar price points,” he added.

With Indian apparel manufacturers being best in spring and summer products, Goenka said the zero duty deal with Australia will keep Indian factories fully utilized during its lean period with orders for spring and summer products.

He said that the deal will also help women who constitute around 70 per cent of the 14 million workforce and the industry, which is predominantly in the MSME segment, offering livelihood to a large section of migrant workers and rural youths. (KNN Bureau)