Exports to fall short of targeted $25 bn

The Textiles Ministry today said that exports are likely to fall short of the targeted about $25 billion for 2010-11, as it has reached only $11 billion till September, 2010.

"We had set a textiles exports target of $25 billion for the current fiscal. But now, we are expecting textiles exports in the range of $22-23 billion in the current fiscal," Textiles Secretary Rita Menon said.

During 2009-10, the country's textiles exports stood at $22.4 billion.

The US and EU together contributes 70 per cent to the country's total textiles shipments.

The sector was hit-hard due to global economic slowdown in the western markets which led to less number of orders for the Indian exporters.

The economic recovery is still fragile in the West and the demand is still to pick up, Menon said.

She said, "We are doing well in some sectors such as synthetics and carpets, not doing well in some and having a zig zag. It is a mixed bag and we are struggling to keep to the target set by the Textiles Ministry."

Asked if the Ministry will ask for a stimulus support for the sector, Menon said, "We expect to fall short (of the target) like many other sectors across the industrial value chain in other ministries. But, we will see about the stimulus later."

However, during the first six months of the current fiscal, the textiles shipments have increased by 11.3 per cent to $11.2 billion.

Textiles exports constituted nearly 13 per cent of India's total shipments in 2009-10.

The textiles sector, which employs about 35 million people, is the second largest employment generator after agriculture.