With the Trans-Pacific Partnership put in place, Vietnam will get duty-free access to US market while the Indian textile exporters will have to pay a duty of around 14-32 per cent, which will make it uncompetitive, according to a report on ‘Make in India’ made jointly by the Confederation of Indian Industry (CII) and Wazir Advisors. At present, India exports yarn and fabric to Vietnam which then exports the finished products to countries like the US, but with the yarn forward provision in the TPP, Vietnam will either source from other free partner country or produce domestically, affecting India’s exports adversely.
The report suggested the Indian Government to aggressively enter into as many Free Trade Agreements (FTAs) as possible with textile markets in Asia and European Union.
