Free Trade Agreement set to double exports from Karur to UK within two years
The implementation of the India-UK Free Trade Agreement has eliminated import duties on home textile products exported from Karur. This change is expected to significantly boost the competitiveness of Indian exporters and potentially double annual export volumes within two years.
Why it matters
This trade agreement provides a major economic stimulus to the Indian textile manufacturing sector, specifically benefiting regional hubs like Karur.
The first consignment of home textile products from exporters of Karur to England, after implementation of India-UK Free Trade Agreement (FTA), was flagged off on Wednesday.
C. Muthukumaran, Collector, flagged off the consignment in the presence of D. Sridhar, Additional Director General of Foreign Trade, Coimbatore, and members of Karur Textile Manufacturers and Exporters Association (KTMEA).
According to P. Gopalakrishnan, president of KTMEA, the agreement marks a historic milestone for the Indian textile sector and is expected to significantly benefit the Karur Home Textile Cluster, one of India’s leading home textile manufacturing and export hubs. Until now, most home textile products exported from Karur to the United Kingdom attracted import duties ranging from 8% to 12%. The duties increased the landed cost of Indian products, making them less competitive compared to products from countries enjoying preferential trade access.
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