The CII-BCG report also suggested that the state governments should promote infrastructure with plug and play facilities. A free trade agreement with the European Union (EU) besides rationalisation of taxes and duties would help in promoting the growth of India's apparel sector, says a report. The CII-BCG report also suggested that the state governments should promote infrastructure with plug and play facilities. "Duties and taxes must be rationalised to avoid inefficiencies and high energy and overall costs. A power subsidy, inclusion of power charges under GST, and similar rates for both cotton and synthetic products are recommended," the report said. It said industry should engage in driving productivity through extensive training and investments in process improvements and automation. The report "strongly calls for a free trade agreement with the EU. An added provision could be to treat the poor states of India on a similar basis as least developed countries," the report added. India and EU are negotiating a free trade pace since June 2007. The talks were stalled on several issues including IPR. It also said that rebranding is essential, accompanied by focused marketing interventions such as global roadshows. Companies should invest in product development and in cutting edge innovations, it said.