Central government will address the concerns of textile sector, says Annamalai

When India goes to a full-fledged trade agreement with the US, it will address all concerns related to textile and garment exports, said K. Annamalai, former State president of the BJP.

Mr. Annamalai told the media that though there are concerns over the agreement between the US and Bangladesh, that has provision for exports to the US with reciprocal duty waived if the product is made of cotton or MMF made in the US. This will not affect the Indian exporters. Bangladesh is hit by high inflation, and electricity charges, he said.

India has an interim agreement framework with the US and has signed an agreement with the European Union.

The US economy size is $ 30 trillion and that of the European Union is $ 23 trillion. The two agreements will enable Tiruppur to double its exports in seven years. It is already recognised as one of the fastest growing cities in the world. The two agreements will generate five lakh new jobs in Tiruppur that already employs about one million people.

America imports textiles worth $ 120 billion and India contributes just $ 9.89 billion of it. By 2030, it will go to $ 14 billion or so. India has 5% share in the textile and apparel exports by the EU countries. This will increase to 10% in four-five years, he added.

The State government should leverage the opportunities that will be created by the two agreements. The Centre never acts with prejudice towards any State, he added.

In the next three years, when five lakh new jobs are created, there is a possibility for more workers from other States. The Centre has released a draft paper to construct hostels for workers. It also gives subsidies for modern machinery, he added.