Textile sector urges govt to take initiatives to boost exports

Cotton Textiles Export Promotion Council (Texprocil) today sought government's support to boost exports.
Exports of cotton textiles in August 2015 registered a negative growth of 7.39 per cent as exports touched USD 863.18 million as against USD 932.02 million in August 2014.
"Exports of cotton textiles during April-August 2015 declined by 2.16 per cent at USD 4.24 billion as compared to same period of the last year.
The target for 2015-2016 is USD 13.67 billion. The continuing decline in exports of cotton textiles is a matter of deep disappointment and concern requiring urgent action from the government," Texprocil chairman RK Dalmia said in a statement.

Dalmia pointed out that even though Indian cotton textiles products were competitive in the world markets, preferential access being given to some of competing nations like Bangladesh, Cambodia, Pakistan, South Korea, Turkey and Vietnam by major importing countries like the EU, besides discriminatory import duties on Indian textiles in important markets like China and Canada, are severely affecting exports.
To provide a level playing field, Dalmia urged the government to fast track the conclusion of FTAs with EU, Australia and Canada to remove trade barriers and gain market access to these leading countries.

The chairman also urged the government to initiate dialogue with China and Turkey for reduction in the import duties imposed by these countries on Indian textiles.

Besides, government should consider the industry's demands such as including cotton textiles under the 3 per cent Interest Rate Subvention Scheme and releasing of funds under the TUF scheme.
Recalibrating the product/country matrix under the newly introduced Merchandise Exports from India Scheme (MEIS) will provide necessary stimulus to the falling exports of cotton textiles in the next 200 days, Dalmia said.
The global slowdown has also hit the country's overall exports. India's exports declined in August 2015 for the ninth straight month by 20.66 per cent with overall exports reaching USD 26.80 billion as compared to USD 21.26 billion in August 2014.