India's textiles exports up 5% in 2014-15

Textiles and clothing exports were recorded at $41 bn as against $39.31 billion in FY14

Textile and clothing export from India rose a marginal 5.4 per cent in 2014-15, despite unfavourable government policies, complain companies in the sector.

According to The Cotton Textiles Export Promotion Council (Texprocil), textile and clothing export was  $41.4 bn in 2014-15 as against $39.3 bn in 2013-14. “We require a level playing field in terms of interest rates, timely release of incentives and policy support as our competitors enjoy. Through basic manufacturing, we are very much competitive. But, because of these other issues, we become uncompetitive,” said R K Dalmia, chairman, Texprocil.

Export of cotton textiles and raw cotton touched $11,353 mn in 2014-15 as against $13,306 mn in 2013-14, a  fall of 14.7 per cent.

“Exports can do better this year if adequate and timely support is given by the government. They must include cotton textiles under the three per cent interest rate subvention scheme and release funds under the Technology Upgradation Fund . Also, recalibrating the product/country matrix under the newly introduced Merchandise Exports from India Scheme will have a direct bearing in improving India’s competitiveness in the short to medium term.”

In spite of repeated representations, exporters are yet to receive the two per cent additional duty credit scrips under the Market Linked Focus Product Scheme, announced in February 2014.

The government has also curtailed individual benefits under the Incremental Export Incentivisation Scheme (2013-14) to a maximum of Rs 0.2 crore. Withdrawal of the Focus Market Scheme for cotton yarn has caused a steep decline in exports to non-conventional markets like Peru and Morocco. Delay in getting Duty Drawback amounts is another issue.

“On addressing these issues, India would be able to achieve the year's target of $45 bn. Otherwise, this is difficult,” said Dalmia.