Latest news with #RajeshDuraiswamy
Time of India
26-07-2025
- Business
- Time of India
India-UK FTA may create more than 1.3 lakh jobs in Coimbatore: CII
COIMBATORE: The India-UK Free Trade Agreement (FTA) is set to be a game-changer for Coimbatore's export landscape, said Rajesh Duraiswamy, chairman of the Confederation of Indian Industry (CII), Coimbatore. In a release, Duraiswamy said the landmark pact eliminates steep tariffs -- ranging from 8% to 16%, and up to 70% for processed foods -- granting immediate duty-free access to the UK, one of the world's most lucrative markets. The FTA is expected to unlock major gains for Coimbatore's core sectors such as textiles, engineering, pumps, agro-products and IT services. The removal of the 12% import duty on textiles and apparel is likely to boost the region's knitwear and garment exports by 20%, unlocking an incremental opportunity of over Rs 1,600 crore annually, he said. Engineering and auto component exports, previously subject to duties of up to 18%, are projected to nearly double -- from US$260 million to US$585 million -- by 2030. Coimbatore's identity as the pump capital of Asia would also get a boost, with pump and machinery exports expected to grow from Rs 80 crore to Rs 300 crore in three years due to zero-duty access, he said. Agro and food processing sectors, including coconut and coir products, will benefit from the removal of tariffs as high as 70%, opening new avenues for local producers. The IT and services sector is also set to gain, with savings of around Rs 309 crore annually through social security waivers and improved professional mobility, he added. In addition to tariff benefits, streamlined customs procedures, digital documentation, and simplified compliance would help more than 40,000 MSMEs access the UK market more easily, he said. 'Collectively, these measures are expected to catalyse the creation of more than 1.3 lakh direct and indirect jobs in and around Coimbatore, reinforcing Tamil Nadu's leadership in manufacturing and exports,' he added
The Hindu
25-07-2025
- Business
- The Hindu
UK- India CETA to bring more export orders to Coimbatore industries
The engineering, food, textile, and garment industries in Coimbatore and nearby areas will see huge export potential because of the Comprehensive Economic and Trade Agreement (CETA) between India and the UK, according to industry associations. Rajesh Duraiswamy, chairman of CII Coimbatore, said the India-UK comprehensive trade agreement is a transformative opportunity for Indian exporters, especially for the vibrant industrial eco system of Coimbatore. 'This agreement eliminates steep tariffs, ranging from 8% to 16% and up to 70% for processed foods, granting immediate duty-free access to the UK, one of the world's most lucrative markets. For Coimbatore's core sectors such as textiles, engineering goods, pumps and machinery, agro-products and IT services, the benefits are both immediate and far-reaching,' he said. The agro and food processing sector stands to benefit enormously, as products such as coconut and coir, previously facing duties as high as 70%, will now enter the UK at zero tariffs, opening new avenues for local producers. According to S.K. Sundararaman, chairman of the Southern India Mills' Association, India is lagging in garment exports mainly because of tariff barriers. Indian textile goods attract 4% to 36% duties in different markets, while several competing countries, including, Bangladesh, Vietnam, Sri Lanka, Pakistan have duty free access. The CETA with the UK will bring tremendous opportunities to Tirupur and Karur that are exporting clusters. Orders for cotton knitted garments and kitchen linen are on an upward trend, strengthened by long-term business commitments, following the announcement of the conclusion of India-UK FTA negotiations in May, he said. The Openend Spinning Mills Association has said that products made from openend mill yarn will see a surge in demand in the UK market, thus giving more orders to the mills here. Chairman of the Confederation of Indian Textile Industry (CITI) Rakesh Mehra said Indian exporters will enjoy a more level-playing field vis-à-vis their peers from other countries when it comes to the UK market. This will enable the exporters to improve their market share not only in the top 20 product categories but across the broader textile and apparel segment. India is the fourth largest supplier of textile and apparel products to the UK with almost 6.6% share in the UK's total textile and apparel imports. In 2024, the UK imported textile and apparel products worth about $27 billion, with apparel and made-up constituting 83% of the total, he said. Better market access for Indian exporters will start a new innings across the entire textile value chain, said R.K. Vij, president of the Polyester Textile Apparel Industry Association.
