ABSTRACT
The rationale behind the ASEAN–India Free Trade Agreement (AIFTA) is clearly in favour of India’s entry into the formidable South Asian regional trade block which has greater significance in political manoeuvering than trade. The moot point is that the Indian share in the ASEAN textiles and clothing imports still remains much lower than the ASEAN share in the Indian imports. India could be a major source of textiles imports for ASEAN as imports of textiles in ASEAN amount to US$21.76 billion during 2008, but currently India is supplying less than US$400 million worth of textiles. Many of the imported items are basic raw materials for the production of technical and non-woven textiles. The product groups are silk including yarns and woven fabric thereof; wool and animal hair including yarn; cotton including yarns and woven fabric thereof; and other vegetable textiles fibre, paper yarn and woven fabrics of paper yarn respectively.
