PHOTO
Employees work inside a sari, a traditional clothing worn by women, manufacturing factory in Surat, India, March 8, 2019. Amit Dave, Reuters Image used for illustrative purpose.
New Delhi - Apart from the uncertainty prevailing at present on account of the war in Ukraine, Indian exports have been affected because the European Union has withdrawn preferential tariffs applicable to several Indian goods, including textiles and apparel, chemicals, leather works, gems and jewellery products, and railway equipment.
The EU has withdrawn the preferential duty access for Indian goods as there has been an improvement in the income levels and competitiveness in India.
Textiles will now attract import duties in the EU at the rate of 12 per cent. Currently, the most favoured nation import duty is 9.6 per cent. However, all textile products are not covered by the withdrawal of preferred tariff. There is optimism on the trade front because India and the EU are currently negotiating a bilateral trade agreement.
The Indian Government has decided to negotiate free trade agreements which would give a tariff advantage to European goods which are imported into India. After having signed the free trade agreements with Australia and the UAE, such agreements have been pursued vigorously with the United Kingdom and the European Union.
It is therefore expected that Indian exports to these countries will increase in the near future.
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