Tamil Nadu’s industry optimistic about exports to UAE, Australia

The UAE is the gateway to Africa and the Arab world, and Australia is a continent with a growing market. The industry in Tamil Nadu is optimistic about exports to these two regions.

India signed a free trade agreement (FTA) with the two countries in 2022, and the effects have been visible for months.

Confederation of Indian Industry (CII) Tamil Nadu chairman Satyakam Arya said industries such as textiles, leather and footwear would benefit from the free trade agreement.

“The ‘India-UAE Startup Bridge’ will act as a one-stop platform where entrepreneurs and stakeholders in both countries can easily access information. Tamil Nadu has a strong start-up and entrepreneurial ecosystem and will greatly benefit from it ,”He said.

From April to November last year, Tamil Nadu exported about $253 million worth of ready-made garments to the UAE and Australia. From this amount alone, the UAE accounted for about $159 million.

A Sakthviel, chairman of the Federation of Indian Export Organizations, said garment trade between India, the UAE and Australia is likely to double within three years.

“We believe the two free trade agreements will benefit Tamil Nadu. Australian buyers have shown strong interest in importing garments from the state. There are several businesses in the UAE sourcing garments from India and exporting them to the GCC (GCC) countries. In this context, duty-free access to the UAE will boost garment exports from Tamil Nadu,” he added.

India’s finished leather exports to both countries are expected to boom. Tamil Nadu already accounts for 50-60% of India’s total leather exports. Australia and the UAE’s share of India’s $5 billion worth of leather exports is just $200 million.

According to Yavar Dhala, a member of the executive committee of the Indian Finished Leather Manufacturers and Exporters Association, this amount will increase to $400 million in two to three years.

“The free trade agreement facilitates zero tariffs and paves the way for Indian leather products to become more competitive with those from Italy and Western Europe. Both countries will increase their purchases of leather from India,” he added.