TEHRAN: Garment exporters body Apparel Export Promotion Council (AEPC) believes there is there is market for simple but stylish apparel products to tap in Iran following the removal of economic sanctions against the country.
AEPC Chairman Ashok G Rajani who recently led a delegation of the Council to Iran for an exploratory visit said, “The warmth and positive attitude towards India among the members of the trade associations and government representatives augurs well for trade promotion between the two countries. Although the economy and trade is still recovering from the impact of the sanctions, there is market for simple but stylish apparel products, which AEPC plans to tap.” India’s share in Iran’s RMG import was 2.5 per cent in 2015, which means there is very real possibility for India to capture the growing Iranian market.
Iran’s RMG import from around the world has shown a growth of 43.3 per cent in 2015 which has increased to $825.9 million in 2015 from $ 576.2 million in 2014. “Although it is small market at present, there is scope for growth in the immediate future and we want India to be an important partner in this growth,” said Rajani. The Council has drawn up its export promotion programme for the year 2016-17 with a view to achieve an export performance of $18750 million in the year 2016-17.
The APEC delegation held meetings with the Iran Textile Export Association, Tehran Chamber of Commerce and Tehran Textile Union on how to reduce tariffs and facilitate market access. Iran has seen a progressive reduction in tariffs from 300 per cent during sanctions to the present 55 per cent. The high tariffs had resulted in “unofficial” imports being over 10 times the volume of “official” imports. Hence, the trade associations have been working with the government for reduction in import duties to international levels. This is also necessary as Iran wants to be part of WTO and hence align to WTO’s tariff levels.
AEPC is hoping that the visit will boost Indian RMG exports, particularly after General Director of Textile & Clothing, Ministry of Industries Mrs. Nasrollahi said “India has a lot to offer and could complete the apparel value chain in Iran.” The AEPC delegation also met Indian Ambassador Saurabh Kumar who reiterated the opportunities that can open up in the coming years in Iran.
