Knitwear exporters in Tirupur are now seeing a great opportunity coming to them to penetrate the huge Russia apparel market following India’s decision to sign the Free Trade Agreement with Eurasian Economic Union (EEU).
As a prelude to the FTA with the EEU (comprising Russia, Kazakhstan and Belarus), a joint statement had been signed between India and EEU at St. Petersburg in Russia few days back for establishment of a joint study group to work out the formalities including the finalisation of the sectors that would be part of the FTA.
“We have already been representing to the authorities and made them convinced the need to have a FTA with Russia with textiles included in it, considering the immense market potential in that country,” T. R. Ramanathan, an industry consultant, told The Hindu . During 2013-14, Russia has imported apparel items worth $ 7.5 billion and of which, India’s share was only $ 268 million.
“Once the FTA been signed, the exporters from clusters like Tirupur and its hinterland will be enthused to eye Russian market more because of the inherent incentives available in duty front under any free trade pact which makes the Indian products cost-competitive,” said R. Dhanapal, an exporter.
