Ludhiana is looking forward to the India-Australia Economic Cooperation and Trade Agreement (ECTA).

The textile and garment industry of Ludhiana which is passing through a turbulent phase due to a severe recession feels the micro and small industry especially can grab new export opportunities from ECTA and that this agreement between India and Australia will have a significant positive impact on the extremely labour-intensive textile and apparel industry.

The cotton textiles’ value chain in the country, which has begun to experience a shortage of high-quality cotton as a result of the increased demand, is expected to benefit from allowing the import of duty-free cotton. The agreement with Australia will give various Indian textile products, particularly ready-to-wear clothing and home textiles, zero-duty market access.

The removal of the ten per cent tariff barrier for exporting to Australia as well as the eleven per cent import charge on cotton is expected to increase India’s textile and apparel industry’s competitiveness in the world market.

Ludhiana is known for its hosiery and woolen products worldwide. The products manufactured here are exported and sent to Uttar Pradesh, Jammu and Kashmir, Rajasthan, Madhya Pradesh and Bihar, among others. Ludhiana accounts for over 90 per cent of the total winter wear production in the country. There are around 12,000 units, a majority of them in the micro, small and medium category.