In a latest statement, Minister of State for Textiles, Ajay Tamta said Indian textile businesses face higher trade barriers in Europe and the US when compared to other markets.
The Minister reportedly stated that the country’s average tariff for exported textiles is 5.9 percent in the EU and 6.2 percent in the US.
Notably, the US is one of India’s key textile export destination with 17 percent market share. The EU is India’s second largest textile export market followed by Bangladesh, China, Pakistan, the UAE, Vietnam, Sri Lanka, Brazil, and South Korea.
Tamta told the Rajya Sabha (or Council of States is the upper house of the Parliament of India) that Pakistan enjoys a 0 percent average tariff in the EU and 5.3 percent in the US.
Moreover, Bangladesh enjoys a 0 percent average tariff in the EU and 3.9 percent in the US.
Vietnam on the other hand has a higher EU tariff than India at 6.1 percent but lower in the US at 5.5 percent.
India is working to increase textile and garment exports; however, the higher tariff could be a blockade to growth in the international market.
