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Garment exporters want quotas to go by 2002

India should push for phasing out garment export quotas by the year 2002 at the forthcoming World Trade Organisation round of ministerial talks, the Garment Exporters' Association said today.

''The Indian industry is prepared for quota-free regime,'' said GEA's newly-reelected president Rakesh Vaid. ''The ten-year quota phase-out schedule should be preponed by three years from 2005 to 2002.''

He said the growth rates in quotas on all categories should be increased from 2000 onwards so as to eliminate all quotas by January 2002.

The GEA is an apex body of top 650 garment exporters in the country. The WTO round of talks are scheduled to be held at Seattle, the United States, from November 30 to December 3.

Vaid said India exported readymade garments worth $ 5.26 billion (Rs 228.81 billion) in 1998-99, marking an increase of 7.31 per cent over last year's performance. This was despite the national economy passing through a critical phase of transition and restructuring.

At a time when major economies of the world are reeling under the impact of recession and the Indian economy is suffering from low business confidence and slowdown in exports, Vaid said the performance of garments sector has been satisfactory.

However, there is a need for careful assessment of trends in global markets and identification of the areas of actual and potential Indian competitiveness.

''To achieve a high rate of export growth, it is necessary to reorganise the economic set-up, remodel the development strategy and improve the infrastructure,'' Vaid said.

''It is essential that an export climate is created where the policies and procedures are made pragmatic and the exporters are able to produce and export quality goods of international standards with the least of procedures and policy regulations,'' he said.

UNI

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