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EU to allow hike in Indian textile imports

India will be granted an additional 3,500 tonnes of textile imports to the European Union, EU trade commissioner Pascal Lamy said on Thursday in Brussels.

"This extra export facility is in recognition of the fact that India is taking concrete action to reduce its tariffs in the WTO as agreed with the EU," Lamy said in a statement.

"I am confident that this will now pave the way for full implementation of our memorandum of understanding, or MoU," he said.

The agreement follows a request by India for additional export facilities under terms of the MoU -- a maximum of 8,000 tons a year.

Following a visit by Lamy to India in February, the European Commission proposed that part of the request, 3,500 tons, be granted in recognition of India's notification to the WTO of the binding of maximum duties for 220 textile and clothing products, which India carried out last December.