A Free Trade Agreement (FTA) between India and the EU (European Union) will yield better results for Indian apparel sector, claimsCII-BCG report. The EU accounts for 49 per cent of India’s total apparel exports and is also the largest trading partner of the country. According to the report, development of infrastructure by State Governments in India with plug and play facilities will be crucial.
“Duties and taxes must be rationalised to avoid inefficiencies and high energy and overall costs. A power subsidy, inclusion of power charges under GST, and similar rates for both cotton and synthetic products are recommended,” the report stated.
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The report firmly calls for a FTA between India and EU. Negotiations on the India-EU FTA was initiated in June 2007 and since then several rounds of talks have taken place at the level of chief negotiators. The negotiators are yet to reach on a conclusion on the FTA as they are seeking solutions to address the EU’s key demands.