India enhances engagement with Sri Lanka in textile sector

During the visit of Indian Minister of Commerce, Industry and Textiles Anand Sharma to Sri Lanka in August, the Government of Sri Lanka had raised the issue of relaxation in the TRQ condition for fabric sourcing for FIVE million pieces of Ready Made Garments (RMG) export to India and collaboration in Textiles sector for revival of the textiles industry in Sri Lanka.

Sharma had promised to give favourable consideration to both the requests.

Following up on the commitment made by Sharma, a high-level delegation led by Indian Secretary, Ministry of Textiles Kiran Dhingra visited Sri Lanka from 18 to 21 September.

The twelve-member delegation, comprising officials from the Ministry of Textiles, apparel exporters, spinners, fabric exporters and home textiles manufacturers, held further discussions to enhance bilateral cooperation between the two countries in the textiles sector at Government, institutional and business-to-business levels. The official members of the delegation included Joint Secretary, Ministry of Textiles V.Srinivas, Joint Secretary, Ministry of Textiles Sunaina Tomar and Under Secretary, Ministry of Textiles J. P.Dutt. Industry representatives included Textile Export Promotion Council (Texprocil) Chairman Amit Ruparelia, Apparel Export Promotion Council (AEPC) Chairman Sudhir Sekri, Powerloom Development Export Promotion Council (PDEXCIL) Chairman Bharat Chajjer, Texprocil Executive Director Sidharth Rajagopal, AEPC Executive Committee Member Viredra Uppal, AEPC Executive Committee Member Lalit Gulati, Sri Gomathy Mills Pvt. Ltd Managing Director V. S. Velayutham and Mafatlal Denim Ltd. MD Rajiv Dayal.

During the visit of the Indian Textile delegation, wide-ranging discussions were held with Minister of Economic Development Basil Rajapakasa, Minister of Industry and Commerce Rishad Bathiudeen and Secretary, Ministry of Industry and Commerce Anura Siriwardena. The Joint Apparel Association Forum (JAAF) of Sri Lanka organised a half-day interaction with the participation of industry and official representatives. The Indian delegation also had discussion with officials of Board of Investment, Export Development Board and Sri Lanka Institute of Textile and Apparel (SLITA).

The Indian side during discussions with the Sri Lankan authorities, outlined the possible modalities of collaboration envisaged by India in Textiles sector with Sri Lanka. Both sides agreed to constitute a Joint Working Group would be to look into the issues of (a) restructuring/ revival of textiles industry; (b) trade relations; (c) skill development; (d) fashion technologies; (e) cluster development; (f) processing sector technologies. It was agreed that a Memorandum of Understanding could be entered into between both the countries outlining the cooperation envisaged.

Both sides agreed the need to strengthen trade relations and the best way forward is enhanced participation in textiles shows. The Indian side invited the Sri Lankan Apparel exporters to participate in India’s largest Reverse Buyer Seller Meet-Tex Trends India 2013 and also in the next edition of the India Garment Show. It was also decided that India’s leading export promotion councils will organise a fabric sourcing show in Colombo in December 2012. The modalities of such a show will be worked out in the coming months. It is expected that the reduction in Indian import duties would enable creation of effective supply chains between India and Sri Lanka.  

During the industry interaction organised by JAAF, it was highlighted that Sri Lankan and Indian competitiveness in global markets can be enhanced by creation of viable, functional supply chains and green field investments enhancing areas of mutual strength.

It was decided to develop a joint action plan for formulating skill development initiatives in the apparel sector under the framework of the proposed MoU. The two sides also agreed to cooperate in the area of fashion technology through exchange of visits and joint workshops. India made a proposal to set up an India-Sri Lanka textiles cluster in Sri Lanka. Both sides also agreed to work together in the area of environmental challenges posed by textile units.