- Created on Wednesday, 27 March 2013 14:26
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Apparel and Proessed meat sector to benefit
The Government of India has approved the Sri Lankan request for removal of the fabric sourcing condition, bringing to 8 million pieces the number of garments that can be exported from Sri Lanka to India duty-free, under the terms of the bilateral Free Trade Agreement.
During the visit of Anand Sharma, Minister of Commerce, Industry & Textiles of the Government of India to Sri Lanka from 3-5 August, 2012 the Government of Sri Lanka had made a request to remove the condition of sourcing of fabric from India for 5 million pieces under the India-Sri Lanka Free Trade Agreement so that the total quota for duty free apparel exports from Sri Lanka to India becomes 8 million pieces, without any condition on fabric sourcing.
As committed by Anand Sharma, the Indian Govenment has approed the Sri Lankan request and the relevant notification in this regard was formally handed over to the Director General, Department of Commerce of the Government of Sri Lanka, Tuesday (26 March) by the High Commission of India.
Further, under the revised SAFTA duty regime notified by India for non-LDC countries on 6 September 2012, Sri Lankan textiles exports would attract a duty of 5%, as against the earlier 11%. This is another step that will facilitate greater Sri Lankan exports of ready made garments to the Indian market.
The High Commission of India on 27th February 2013 had informed the Sri Lanka Ministry of Commerce and Industry regarding the decision of the Government of India to extend the validity period of Sanitary Import Permits (SIPs) for export of meat products to India. The extension was accorded in response to a request made by the Sri Lankan Industry and the Department of Commerce of Sri Lanka. As per the new notification by the Indian Government's Department of Animal Husbandry, Dairying and Fisheries, the permits will now be issued for imports of processed livestock products into India for a period of one year. The validity period earlier was six months.
During the 8th India-Sri Lanka Joint Commission meeting held on 22 January 2013 at New Delhi, both countries had agreed to cooperate closely to forge closer economic and trade linkages and take steps to double the bilateral trade to reach US $ 10 billion in next three years. The two sides also agreed to consider working towards increasing Sri Lanka’s export capacity. By providing greater market access to Sri Lankan ready made garments and implementing trade facilitation measures such as extending the validity of sanitary import permits, the Government of India’s commitment to facilitating Sri Lankan exports and enhancing bilateral trade is clear.
Sri Lanka’s export to India has increased substantially since the coming into force of the India-Sri Lanka FTA, reaching USD 720.89 million in the year 2011-12, according to statistics compiled by the Department of Commerce, Government of India. For the period April-December 2012, Sri Lanka’s export to India were USD 528.76 million.