They said the duty concessions under these trade agreements would not only provide domestic players with preferential access to overseas markets but also encourage capacity expansion and fresh investments in India.
India has implemented FTAs with Mauritius, the UAE, Australia, the EFTA bloc, and Oman. It has signed such pacts with New Zealand and the UK, and announced the conclusion of negotiations with the European Union.
The country is also negotiating similar trade pacts with a number of other countries, including Israel, Canada, Peru, Chile, Gulf Cooperation Council (Bahrain, Kuwait, Qatar and Saudi Arabia), and Eurasian Economic Union (EAEU – Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia).
“These agreements will help us provide huge export opportunities. We have already started our exports,” Gujarat-based Nipponply Industries Managing Director Ketan Thakkar said.
He said that Indian products from the furniture sector meets global standards, and there is a good demand in the international markets.
“We can do a lot of import substitution in this segment. India imports a lot of high-end office and home furnishing products. We can make it all that. Our products are 100 per cent non-toxic,” Thakkar said. Nipponply Industries Project Head Aastha Thakkar said they are getting good enquiries for their dining and office tables and chairs, such as round dining table, conference table, and monolithic buffet table.
“These items come with flame-retardant surface systems and scratch and stain-resistant surfaces,” she said.
Nipponply Industries has launched AURA, a range of premium home and office organisation products designed to help users manage storage and workspace needs, with Director Smit Thakkar saying the products are made from the company’s patented Nipponglint wood veneer technology for enhanced durability and aesthetics.
Indian Institute of Foreign Trade (IIFT) Vice-Chancellor Rakesh Mohan Joshi said FTAs have opned immense export opportunities for the Indian furniture sector.
“Industry should grab this opportunity,” Joshi said.
Sharing similar views, Bharat Cluster Ventures Private Limited (BCVPL) Founder Amiet R Barot said the company is exporting to Europe and the US and exploring opportunities in other markets.
He said that BCVPL is developing Maharashtra Global Furniture City (MAHA-GFC) – an integrated ecosystem for the furniture fraternity focused on manufacturing, trade, exports, and logistics.
Earlier this month, Swedish furniture retailer and home furnishing major IKEA announced setting up a new product development company in India to support the creation of affordable and locally relevant products for domestic and global markets.
As per estimates, the Indian furniture market was valued at over USD 30 billion. India presently ranks 16th in the global market for furniture exports.
According to TPCI (Trade Promotion Council of India), the global furniture industry is expected to reach USD 872.5 billion by 2030. India contributes over one per cent to global furniture exports.
The major export destinations are the United States, Germany, and the United Kingdom.