Govt aims $14-bn garment exports

The government has set up a target of $14 billion for garments exports in the 2011-12 fiscal as demand is on the rise in the western markets, Textiles Secretary Rita Menon today said.

"We expect these exports to touch $14 billion as there is a good demand not only from traditional markets but also from new markets," she said after inaugurating the India International Garment Fair.

The three-day exhibition is being organised by the Apparel Export Promotion Council.

During 2010-11, the country's apparel exports increased by 4.2% to $11.1 billion as against $10.7 billion in the previous fiscal.

The US and EU account for about 80% of the country's total apparel exports.

The government pays high-emphasis on initiatives for promotion of apparel exports. Also, a number of new schemes including government support for the common compliance code and knitwear technology mission are proposed for the current year, Menon said.

In the first two months of the current fical, garments exports jumped 30% to $2.3 billion year-on-year.

"We are happy with 30% growth [in May and June] year-on-year. The Technology Upgradation Fund Scheme [TUFS] will be a main driver of the exports growth," Menon said.

In April this year, the government had restored TUFS by increasing 11th Plan allocation to Rs 15,432 crore from Rs 8,000 crore.

Earlier, the government had earmarked Rs 8,000 crore for this purpose, which was exhausted by June 2010. Subsequently, it had asked banks to suspend new sanctions under the scheme till allocation of additional funds.

Under the scheme, the government subsidises 5% of interest payments on loans sanctioned under it.