India’s Cotton Export Drops As Pakistan and China sign Free Trade Agreement
As per a report, India exported 422 million kg of cotton yarn between April and September.
India has experienced a big decrease in the exports of cotton yarn in the first half of the current fiscal year, as exports of cotton yarn from India dropped to 38.8%.
As per a report, India exported 422 million kg of cotton yarn between April and September, the worth of this stood at $1.27 billion. During the same period last year, 654 million kg of cotton yarn was exported by India, whose value stood at $2.08 billion.
The trade agreement or the China-Pakistan Free Trade Agreement (FTA) has played a big role in the decrease of India’s export of cotton yarn.
The free trade agreement was signed in April of 2019. Pakistani goods worth $64 billion got duty free access to the Chinese market under the agreement. A big segment of the goods belonged to the textile sector.
K V Srinivasan, Chairman of Cotton Textiles Export Promotion Council, said that India’s cotton yarn exports began to decline since the start of China-Pakistan FTA’s second phase.
Big markets like South Korea, Turkey, China, and European Union EU charge 3.5% to 5% on import duties of cotton yarn, which is imported from India. There is duty-free access into these markets for Pakistan, which is another factor contributing to the decrease of India’s cotton yarn export.
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