India-Australia ECTA to provide larger opportunity to Indian apparel, home textile exporters
News: As per media reports, India and Australia have signed an economic cooperation and trade agreement (ECTA) to ensure barrier free trade in several commodities between the two countries
View: The Australian market has good potential for exports of home textiles like bed & bath linen, toilet & kitchen linen, curtains, pillow covers, quilts & comforters, Readymade Garments; Carpets & Floorings etc. At present, Indian exports of around 70% textile products and 90% apparel products attract 5% duty in Australia. As a result, Indian exports face disadvantage compared to exports from other countries having FTA with Australia. The signing of the India Australia ECTA will eliminate the duty disadvantage for Indian companies exporting textile products to Australia. The Government is targeting a multifold increase in India’s exports of textiles and apparels to Australia which is expected to go up from US$ 392 million to US$ 1100 million in the next 3 years. Among our coverage universe , it would provide enhanced opportunities for readymade apparel exporters like KPR Mills and Gokaldas Exports. Also , in the home textile space, it would provide be beneficial for large companies like Indo Count Industries which have a strong product portfolio across the home textile segment.