The Indian Texpreneurs Federation (ITF), an apex body of textile manufacturers, is now putting pressure on the Government of India to study the impact of the Transpacific Trade Partnership (TTP), especially on the textile and clothing sector in India. The ITF is worried that the TTP will put India’s garment exports to US at a disadvantageous position.

In a letter to the Union Minister for Commerce and Industry, Nirmala Seetaraman, the ITF secretary Prabhu Damodharan said that preferential access to the US market will be given to the exporters from TPP member countries. He also added that the US imports about USD82 billion of apparel from India, which amounts to 21.5 percent of India’s total exports. This is down from 23 percent in 2014.

On Yarn Forward Rule (YFR) Prabhu said that that TPP made it compulsory for the exporters to countries like the US to source the yarn used for manufacturing the apparel from TPP partner countries, even if the supply is irregular.

This is very likely, according to the ITF secretary, to drastically reduce India’s exports, direct as well as indirect via Vietnam, to TPP member countries like the US.