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In a major bilateral trade move in which access to the huge Indian textile market is opened to our garment exporters, India has decided to throw allow its textile sector to Sri Lanka in a considerable way.
“Favourably considering your official request made to Minister Anand Sharma’s during his successful visit to Colombo recently, Minister Sharma has now decided to increase the current five million piece quota given to Sri Lanka to eight million without any sourcing requirements imposed by us” announced Mrs. Kiran Dhingra (Secretary, Ministry of Textiles) on 19 September at the Ministry of Industry and Commerce, Colombo. Visiting Secretary Mrs. Dhingra, who is leading the biggest ever textile industry delegation from India to Sri Lanka, was addressing Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka during a special courtesy call on Minister Bathiudeen on 19 September in Colombo.
According to independent international trade estimates, the current share of the highly promising Indian textile and apparel sector in world trade (4.5% in March 2012) is expected to boom to a huge $ 80 Bn by 2020 (8%).
• Unprecedented Indian push to liberalize its own markets and revive Lankan textile sector
• “We warmly welcome the liberalization initiative” says Rishad
• Increases Lanka’s current 5M export quota allowance to 8M
• Joint Working Group formed to implement textile cooperation measures
• Indian Cluster Zone Model to revive Lankan textiles
• Excited Indian apparel makers scouting for JVs here
jpg Rishad Bathiudeen, Minister of Industry and Commerce (far right) discusses with the visiting high level Indian textile delegation led by Mrs. Kiran Dhingra (Secretary, Ministry of Textiles-next to Minister Bathiudeen), and V. Srinivas (Joint Secretary to Government of India, Ministry of Textiles-third from left) on 19 September in Colombo.
Minister Bathiudeen, addressing the delegation, said: “On behalf of His Excellency Mahinda Rajapaksa, our President, we warmly welcome you here in the aftermath of Minister Anand Sharma’s well known recent visit to Colombo to boost bilateral cooperation. Your visit is an important event for mutual engagement in our textile and apparel sector.”
Minister Bathiudeen added: “We request you to further liberalise your textile market for Sri Lankan exporters and allow duty free access to our HS Code 61 and 62 apparel export items. These two are important exports originating from here to your markets and also further liberalise both garment and textile under the Indo - Sri Lanka Free Trade Agreement (ISFTA) (HS Code 61 are articles of apparel and clothing accessories, knitted or crocheted and HS Code 62 are articles of apparel and clothing accessories, not knitted or crocheted). We also request you to finalise administrative procedures for implementation of these additional apparel quotas with no restrictions on fabric sourcing which would be of great assistance to our exporters. And we also welcome your support to revive some of the textile and garment mills in Sri Lanka with Indian private or public sector investment, even on the textile clustering investments model. We also look for support to strengthen textile supply chain such as raw material, yarn, for example.
Though our apparel sector technology is strong, our textile sector is weak in this regard and we believe that India know-how can support technology transfer in this regard. More importantly we invite Indian investors to Sri Lanka for Joint Ventures and Strategic alliances.” Minister Bathiudeen stressed.
Secretary Mrs. Dhingra apprised Minister Bathiudeen: “We see complementarities for both countries and potential for mutual engagement in textiles rather than competing with each other. In this regard, and considering your official request made during Minister Sharma’s recent visit to Colombo, Minister Sharma has now decided to increase the current five million piece quota given to Sri Lanka’s garment exporters to eight million pieces without any sourcing requirements imposed by Indian us. Indian Textile Ministry has already started work in this regard and the Indian Cabinet approval process is now on. We are also pleased to inform you that from 6 September, India has removed duty for HS Codes 61 and 62 garment and textile imports from Sri Lanka making them zero duty thereby benefitting Sri Lanka garment exporters even more.”
Mrs. Dhingraadded: “We are also ready to set up a textile manufacturing park based on our Integrated Textiles Parks (SITP) model, which could be called “India-Sri Lanka Concept Integrated Textile Cluster” in which greenfield infrastructure for textiles industry is established. This India-Sri Lanka Concept Integrated Textile Cluster is aimed at kick-starting Lanka’s textile industry revival. We believe that a 500 acre zone with $ 350 Mn initial investment can be a steady supply source to Lankan manufacturers and while reviving Sri Lanka’s textiles, eventually bringing in more than $225 Mn of new textile exports from Sri Lanka. The proposed Zone has the potential to generate 25000 new employment opportunities. What is more, this could be implemented on the public private partnership model.”
In 2011, Sri Lanka exported $ 50 Mn of garments, woven fabrics and other textiles to India. Lanka’s “garment exports” to India alone was $ 25.56 Mn in 2011 and garments were Sri Lanka’s fifth export item to India. India therefore is ranked at 14th as for the international marketwise distribution destination for our 2011 garment exports, which totalled $ 3986 Mn last year across 40 countries.
Visiting Secretary Mrs. Dhingra continued: “During the next two days, we expect to set up a Joint Working Group (JWG) between the two countries to revive Sri Lanka’s textile sector and take these initiatives forward. The JWG will be constituted with reps from both countries by a Memorandum of Understanding.” She added: “Our expectation is that Lankan textile industry is revived and back on track.”
Some Indian textile titans present at the 19 September courtesy call voiced their excitement on the latest developments. “I am excited. Sri Lanka textile sector is highly promising to us” said Lalit Gulati, whose Modelama Exports Ltd, is one of India’s leading manufacturer & exporter of readymade garments. “Sri Lanka garments are of very high quality and appeal for us. My company is very keen for imports from Sri Lanka and I am looking for joint ventures here. Today’s meeting is one of the best meetings we ever had between the two countries. Now Sri Lankan exporters have duty free access to our garments market which also gives us to jointly explore the promising Asian markets.”
The delegation led by Mrs. Kiran Dhingra (Secretary, Ministry of Textiles), comprised of V. Srinivas (Joint Secretary to Government of India, Ministry of Textiles), Mrs. Sunaina Tomar (Joint Secretary to Government of India, Ministry of Textiles) and J.P. Dutt (Under Secretary to Government of India, Ministry of Textiles), Lalit Gulati (Modelama Exports Ltd, India’s leading manufacturer & exporter of Readymade garments), Sudhir Sekri (Chairman, Export Promotion- AEPC and the diversified group Trendsetters Ltd) , apparel exporter and founder of Yo!China Ltd), and Virendra Uppal (Chairman AEPC and $ 84 Mn turnover Richa Group).
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Enjoy Sri Lankan quality products!
“Favourably considering your official request made to Minister Anand Sharma’s during his successful visit to Colombo recently, Minister Sharma has now decided to increase the current five million piece quota given to Sri Lanka to eight million without any sourcing requirements imposed by us” announced Mrs. Kiran Dhingra (Secretary, Ministry of Textiles) on 19 September at the Ministry of Industry and Commerce, Colombo. Visiting Secretary Mrs. Dhingra, who is leading the biggest ever textile industry delegation from India to Sri Lanka, was addressing Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka during a special courtesy call on Minister Bathiudeen on 19 September in Colombo.
According to independent international trade estimates, the current share of the highly promising Indian textile and apparel sector in world trade (4.5% in March 2012) is expected to boom to a huge $ 80 Bn by 2020 (8%).
• Unprecedented Indian push to liberalize its own markets and revive Lankan textile sector
• “We warmly welcome the liberalization initiative” says Rishad
• Increases Lanka’s current 5M export quota allowance to 8M
• Joint Working Group formed to implement textile cooperation measures
• Indian Cluster Zone Model to revive Lankan textiles
• Excited Indian apparel makers scouting for JVs here
jpg Rishad Bathiudeen, Minister of Industry and Commerce (far right) discusses with the visiting high level Indian textile delegation led by Mrs. Kiran Dhingra (Secretary, Ministry of Textiles-next to Minister Bathiudeen), and V. Srinivas (Joint Secretary to Government of India, Ministry of Textiles-third from left) on 19 September in Colombo.
Minister Bathiudeen, addressing the delegation, said: “On behalf of His Excellency Mahinda Rajapaksa, our President, we warmly welcome you here in the aftermath of Minister Anand Sharma’s well known recent visit to Colombo to boost bilateral cooperation. Your visit is an important event for mutual engagement in our textile and apparel sector.”
Minister Bathiudeen added: “We request you to further liberalise your textile market for Sri Lankan exporters and allow duty free access to our HS Code 61 and 62 apparel export items. These two are important exports originating from here to your markets and also further liberalise both garment and textile under the Indo - Sri Lanka Free Trade Agreement (ISFTA) (HS Code 61 are articles of apparel and clothing accessories, knitted or crocheted and HS Code 62 are articles of apparel and clothing accessories, not knitted or crocheted). We also request you to finalise administrative procedures for implementation of these additional apparel quotas with no restrictions on fabric sourcing which would be of great assistance to our exporters. And we also welcome your support to revive some of the textile and garment mills in Sri Lanka with Indian private or public sector investment, even on the textile clustering investments model. We also look for support to strengthen textile supply chain such as raw material, yarn, for example.
Though our apparel sector technology is strong, our textile sector is weak in this regard and we believe that India know-how can support technology transfer in this regard. More importantly we invite Indian investors to Sri Lanka for Joint Ventures and Strategic alliances.” Minister Bathiudeen stressed.
Secretary Mrs. Dhingra apprised Minister Bathiudeen: “We see complementarities for both countries and potential for mutual engagement in textiles rather than competing with each other. In this regard, and considering your official request made during Minister Sharma’s recent visit to Colombo, Minister Sharma has now decided to increase the current five million piece quota given to Sri Lanka’s garment exporters to eight million pieces without any sourcing requirements imposed by Indian us. Indian Textile Ministry has already started work in this regard and the Indian Cabinet approval process is now on. We are also pleased to inform you that from 6 September, India has removed duty for HS Codes 61 and 62 garment and textile imports from Sri Lanka making them zero duty thereby benefitting Sri Lanka garment exporters even more.”
Mrs. Dhingraadded: “We are also ready to set up a textile manufacturing park based on our Integrated Textiles Parks (SITP) model, which could be called “India-Sri Lanka Concept Integrated Textile Cluster” in which greenfield infrastructure for textiles industry is established. This India-Sri Lanka Concept Integrated Textile Cluster is aimed at kick-starting Lanka’s textile industry revival. We believe that a 500 acre zone with $ 350 Mn initial investment can be a steady supply source to Lankan manufacturers and while reviving Sri Lanka’s textiles, eventually bringing in more than $225 Mn of new textile exports from Sri Lanka. The proposed Zone has the potential to generate 25000 new employment opportunities. What is more, this could be implemented on the public private partnership model.”
In 2011, Sri Lanka exported $ 50 Mn of garments, woven fabrics and other textiles to India. Lanka’s “garment exports” to India alone was $ 25.56 Mn in 2011 and garments were Sri Lanka’s fifth export item to India. India therefore is ranked at 14th as for the international marketwise distribution destination for our 2011 garment exports, which totalled $ 3986 Mn last year across 40 countries.
Visiting Secretary Mrs. Dhingra continued: “During the next two days, we expect to set up a Joint Working Group (JWG) between the two countries to revive Sri Lanka’s textile sector and take these initiatives forward. The JWG will be constituted with reps from both countries by a Memorandum of Understanding.” She added: “Our expectation is that Lankan textile industry is revived and back on track.”
Some Indian textile titans present at the 19 September courtesy call voiced their excitement on the latest developments. “I am excited. Sri Lanka textile sector is highly promising to us” said Lalit Gulati, whose Modelama Exports Ltd, is one of India’s leading manufacturer & exporter of readymade garments. “Sri Lanka garments are of very high quality and appeal for us. My company is very keen for imports from Sri Lanka and I am looking for joint ventures here. Today’s meeting is one of the best meetings we ever had between the two countries. Now Sri Lankan exporters have duty free access to our garments market which also gives us to jointly explore the promising Asian markets.”
The delegation led by Mrs. Kiran Dhingra (Secretary, Ministry of Textiles), comprised of V. Srinivas (Joint Secretary to Government of India, Ministry of Textiles), Mrs. Sunaina Tomar (Joint Secretary to Government of India, Ministry of Textiles) and J.P. Dutt (Under Secretary to Government of India, Ministry of Textiles), Lalit Gulati (Modelama Exports Ltd, India’s leading manufacturer & exporter of Readymade garments), Sudhir Sekri (Chairman, Export Promotion- AEPC and the diversified group Trendsetters Ltd) , apparel exporter and founder of Yo!China Ltd), and Virendra Uppal (Chairman AEPC and $ 84 Mn turnover Richa Group).
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Enjoy Sri Lankan quality products!
