Pact with EU will be a boon to apparel trade, says Sakthivel

The Free Trade Agreement (FTA) expected to be signed between India and European Union countries before 2010-end will be a catalyst for the apparel exporters in Tirupur to increase their trade volume significantly, according to Federation of Indian Export Organisations president A. Sakthivel.

“Zero import duty at European destinations following the pact will increase the competitiveness of the exporters here,” he said. Mr. Sakthivel, who is also the Tirupur Exporters Association president, was addressing the knitwear exporters at the 20th annual general meeting of TEA on Monday.

He reiterated the need to enhance interest subsidy reimbursement under Technology Upgradation Fund (TUF) from 5 per cent to 8 per cent and capital subsidy from 10 per cent to 20 per cent for the growth of knitwear sector.

Similarly, the interest subsidy for machinery used in the processing sector and common effluent treatment plants should also be increased.

Mr. Sakthivel called for stringent fiscal and operational measures to avoid speculation in cotton trade to maintain price stability of the produce in the domestic market. According to him, ‘portfolio money' that comes into the country should be kept within the country for at least a year to avoid abnormal currency fluctuations.

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