Textile and garment exporters are seeing 12% higher orders from the UK than last year while orders of leather handbags and shoes are up 20%. Gems and jewellery exporters said consignments worth $6.5 million are ready for shipment, and chemical exporters expect a 30-40% rise in shipment to the UK.
“The order booking is happening for textiles and garments. Around 12% orders have been added as CETA will give a push to apparel and madeups business,” said Sharad Kumar Saraf, chairman of Technocraft Ind, a manufacturer and exporter of cotton yarn, fabrics and garments. “We expect good business.”
Under the agreement, existing tariffs of up to 16% on leather and footwear, up to 12% on textiles and clothing, and up to 8% on chemicals and pharmaceuticals will be eliminated, improving the competitiveness of Indian products in the UK. “Orders have increased 20% year-on-year in segments such as ladies handbags and shoes,” said Ramesh Juneja, promoter of Kolkata-based JC Group, a manufacturer of leather and leather goods.
Shaunak Parikh, vice chairman at Gem and Jewellery Export Promotion Council, said improved market access and a level playing field are expected to push gems and jewellery exports to the UK to around $2.5 billion. Bilateral gem and jewellery trade may touch $7 billion, he added.
Toy exporters, however, said regulatory compliances involved are making decision-making and order conversion time-consuming processes even as there’s a spike in queries from the UK.
Meanwhile, the commerce and industry ministry has told exporter bodies to provide details of export consignments that are likely to be shipped on the date CETA comes into force.