Indian cotton yarn exports declined by a massive 38.8 percent because of Free Trade Agreement (FTA) between Pakistan and China.
Deccan Herald reports that during the first six months of the current fiscal year that ended in September 2019 cotton yarn exports were recorded at 422 million kgs, valued at $1.27 billion as compared to 654 million kgs valued at $2.08 billion recorded in the same period last year.
It’s been reported that Free Trade Agreement between Pakistan and China has been the major reason of decreased Indian Cotton yarn exports specially after the second phase of Free Trade Agreement between the friendly countries, China and Pakistan, that was signed in April on goods worth $64 billion which included a major portion of Textile related goods.
Chairman of the Cotton Textiles Export Promotion Council, K V Srinivasan, said that there is an import duty ranging from 3.5pc to 5pc on cotton yarns imported from India into major markets like China, EU, Turkey and South Korea as against imports from competing countries like Pakistan that enjoys zero percent import duty in these markets.
With the New Free Trade Agreement (FTA) Pakistani goods have special access to about 90 percent market of China.