The garment sector applauds the India-UAE CEPA, claiming that it will enhance apparel exports and jobs

21 February 2022, Mumbai:

The Indian garment sector has praised the Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates, believing it will enhance apparel exports and create jobs. The signing of the CEPA, according to Narendra Goenka, Chairman of the Apparel Export Promotion Council (AEPC), would further cement India's dominance in the UAE.

"With $1,515 million in garment exports to the UAE compared to $3,517 million in total imports, Indian apparel exports account for 43% of overall imports. The trade agreement will result in a 5% reduction in the import tariff on Indian clothing.

"This would further reinforce Indian apparel's leading position in the UAE," he added. The chairman emphasized that the government has taken a number of steps to enhance exports and create jobs in the country.

Also read: CEPA to unleash India, UAE’s textile potential

The CEPA is expected to increase demand for a variety of Indian clothing goods. T-shirts, shirts, baby clothes, trousers, and briefs will all see an increase in exports in the knitted garment area. Women's dresses, tracksuits, baby clothes, pants, shorts, shawls, scarves, and veils will profit the most from the woven garment category.

However, in order to assess the real benefit that the CEPA may provide to India, a number of considerations must be taken into account.

"Not all of the things that are in strong demand in the UAE are India's main export capabilities." "The import demand of certain RMG items in the UAE, manufacturing strength/export capability of Indian businesses in these products, and acceptance of Indian products into the UAE are the important criteria that will decide the level of gain from CEPA," he added.

"When we trace the export chain, we discover that our garment exports to the UAE also serve Saudi Arabia, Kuwait, Bahrain, Oman, and the United Kingdom."

"The UAE has a vast retail market with participants from all across the value chain, including significant western fashion chains and wholesale buyers from North Africa and the Middle East," he explained.

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*Figures mentioned in the above article have been sourced from Apparel Resources article.