By Sourav Shekhar
New Delhi, Feb 4 (.) Dr A Sakthivel, Chairman, Apparel Export Promotion Council (AEPC), said the India-US trade deal is timely for the Indian apparel industry, which has been under considerable pressure due to the US tariff rate of 50 pc.
On Monday late night, the United States slashed the steep tariff rates of 50pc which were imposed in August last year, to 18 per cent clearing the roadblock in settling the India-US trade deal.
Sakthivel said the United States is India’s single largest apparel export market, and improved trade terms will significantly enhance the competitiveness of Indian apparel products in the US market.
He noted that this positive development is expected to provide a strong impetus to apparel exports, attract fresh investments across the entire value chain, and further strengthen India’s position as a reliable and preferred global sourcing hub.
“Most importantly, the apparel sector, being one of the largest employment generators in the country, will benefit immensely. This move will help safeguard existing jobs and create substantial new employment opportunities, particularly for women workers in labour-intensive segments,” added Sakthivel.
To tackle the sharp increase in labour requirements, he urged state and central governments to consider providing a 50 per cent capital subsidy for the construction of hostels, particularly for women workers, along with a 5 per cent interest subsidy on the loan amount availed for the purpose.
Dr Sakthivel further emphasized that exporters should proactively prepare to enhance production capacities, improve operational efficiencies, and modernize their enterprises to effectively leverage the upcoming India-EU Free Trade Agreement and India-US Bilateral Trade Agreement (BTA).
Shedding light on the challenges ahead for the industry, he pointed out that the sector is currently facing a serious issue with regard to labour availability.
He urged exporters to proactively plan and make necessary arrangements to ensure the availability of an adequate and skilled workforce.
In this regard, active collaboration with the Skill Council and other relevant Government agencies is crucial to develop and maintain a steady pool of trained manpower to meet the anticipated growth in the near future.
Collectively, AEPC believes that a strengthened India-US trade relationship will open new avenues for sustainable growth and long-term partnership, delivering mutual benefits to both economies.
. SAS PRS