Economy, Business And Markets

India Hopes to Become Largest Textile Exporter to Iran

India Hopes to Become Largest Textile Exporter to IranIndia Hopes to Become Largest Textile Exporter to Iran

In a significant development for Indian garment exporters, Iran has agreed to slash import duties on Indian textile products by 20-25% in two years.

Iran has signed a memorandum of understanding that would make New Delhi the largest textile exporter to Iran, Indian media outlet focused on textile industry Fibre2Fashion wrote in a report. Below is the full text:

The MoU was signed between Apparel Export Promotion Council and Tehran Garment Union on July 18 at the 57th India International Garment Fair in New Delhi.

TGU is an influential manufacturers and retailers association with legislative power in terms of garment commercial affairs in Iran.

India exported readymade garments worth $21 million to Iran, which constituted a minuscule 2.5% of the $825 million worth of RMG that Iran imported in 2015, according to UN Comtrade data 2016.

It is learnt that the MoU would remain in effect till July 18, 2017, according to a press release of AEPC, which had been in talks with TGU for several months before the inking of the agreement.

It was signed by AEPC Chairman Ashok G Rajani and TGU Vice President Mohammad Javad Sedqamiz on behalf of their respective organizations.

As per the MoU, AEPC and TGU would make efforts to promote bilateral trade and industrial cooperation in the textile and fashion sectors by sharing experiences and knowledge, actively cooperating to provide relevant information for enhancing bilateral trade and facilitating trade relations between AEPC and TGU.

“The MoU is a result of persuasions and convincing that was undertaken by the delegation AEPC had sent to Iran in the month of April. The delegation had invited TGU leaders to visit the IIGF so that they could get a firsthand experience of the quality and diverse range of Indian apparel,” Rajani said.

The three-day Indian fair played host to 416 Indian exporters who had the opportunity to exhibit their products to foreign clients. More than 1,500 international buyers and 1,000 plus buying agents kept the atmosphere pulsating at the fair.

India’s Union Minister of State for Textiles Ajay Tamta, who inaugurated the IIGF, said such events provide domestic exporters with an opportunity to exhibit their products, which meet the international quality and technology standards.

“Events like these give a boost to the Make in India program, as the platform encourages smaller player and debutants to work toward making it a reality,” he said.