India Set on the Path of Surge in RMG Exports
- High level trade delegation of AEPC opens possibility of India emerging as one of the biggest partners in Apparel trade with Iran
- Target set to US$ 18750 million in year 2016-17 against the likely performance of US$ 17000 million in the financial year 2015-16
New Delhi, 6th May 2016, Apparel Export Promotion Council (AEPC) embarked on an exploratory visit to Iran to understand the market after removal of sanctions. A delegation under the stewardship of Shri Ashok G Rajani, Chairman-AEPC and four executive committee members of the council visited Tehran (Iran).
Sharing the experience of the visit Mr. Ashok G Rajani, Chairman, AEPC said, “The warmth and positive attitude towards India among the members of the trade associations and government representatives augurs well for trade promotion between the two countries. Although the economy and trade is still recovering from the impact of the sanctions, there is market for simple but stylish apparel products, which AEPC plans to tap.”
India’s share in Iran’s RMG import was 2.5% in 2015; thus there is an impeccable possibility for India to capture the growing Iranian market. Iran’s RMG import from around the world has shown a growth of 43.3% in 2015 which has increased to US$ 825.9 million in 2015 from US$ 576.2 million in 2014. “Although it is small market at present, there is scope for growth in the immediate future and we want India to be an important partner in this growth,” said Mr. Rajani. The council has drawn its export promotion program for the year 2016-17 with a view to achieve an export performance of US$ 18750 million in the year 2016-17.
Meetings with Iran Textile Export Association, Tehran Chamber of Commerce and Tehran Textile Union had discussion on how to reduce tariffs and facilitate market access. Incidentally, Iran has seen a progressive reduction in tariffs from 300% during sanctions to the present 55%. The high tariffs had resulted in “unofficial” imports being over 10 times the volume of “official” imports. Hence the Trade associations have been working with the government for reduction in import duties to international levels. This is also necessary as Iran wants to be part of WTO and hence align to WTO’s tariff levels.
This visit reaped high hopes for the Indian RMG exports, Mrs. Nasrollahi, General Director of Textile & Clothing, Ministry of Industries, of the Islamic Republic of Iran is said that, “India has a lot to offer and could complete the apparel value chain in Iran.”Chairman, AEPC extended an invitation to Mrs. Nasrollahi and other senior dignitaries to be present in the July edition of India International Garment Fair, hosted by AEPC twice a year. The invitation was received with appreciation and keen interest expressed in exploring the Indian products to be displayed at IIGF.
The AEPC delegation also met with Indian Ambassador H.E. Mr. Saurabh Kumar who reiterated the opportunities that can open up in the coming years in Iran.
Statistical overview of Iran’s global RMG Import in recent years:
|Iran’s RMG Import from World and India|
|2011||2012||2013||2014||2015||% Change 2015/2014|
|Iran’s RMG imports from world, (In USD Mn.)||555.4||416.3||299.5||576.2||825.9||43.3|
|Iran’s RMG imports from India, (In USD Mn.)||12.6||16.4||18.3||11.6||21.0||81.1|
|India’s Share in Iran’s RMG imports from world, %||2.3||3.9||6.1||2.0||2.5||26.4|
|Source: UN Comtrade, 2016|