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Textiles, clothing exports jump 11% in July on govt policies, falling rupee

The textile sector is the largest industrial employment provider in India, employing more than 100 mn people directly and indirectly

Dilip Kumar Jha  |  Mumbai 

Sewn up: Employees sew clothes at the Estee garment factory in Tirupur, in  Tamil Nadu. Relatively high labour cost is costing the textile town its competitive advantage. Photo: Reuters

After a staggering 17 per cent decline in the April–June quarter, India’s textiles and revived to witness a jump of 11 per cent in July due to favourable government policies and

Data compiled by the DGCIS under the Union Ministry of Commerce showed total textiles and apparel exports at Rs 196.36 billion ($ 2.86 billion) for July 2018 compared to Rs 176.92 billion ($2.74 billion) for the corresponding month last year. Total textiles exports witnessed a jump of 15 per cent to Rs 108.79 billion ($1.58 billion) for July 2018 versus Rs 94.29 billion ($ 1.46 billion) in the comparable month of previous year. Moving in tandem, India’s apparel exports recorded a jump of 6 per cent to Rs 87.57 billion ($1.27 billion) for July 2018 as against Rs 82.63 billion ($1.28 billion) for the same month last year.

Sudden surge in India’s textiles and apparel exports, however, is attributed to supportive government policies which prompted the government to expedite refund on state and Goods and Services Tax (GST) levies on raw materials. Also depreciation in the rupee against the dollar helped Indian exporters to expedite execution of orders and also receivables.

The textiles and clothing sector in India is on the verge of turnaround. Their exports have jumped in 11 per cent after a steep fall between April & July quarter. It seems the worst is over for India’s textiles and clothing industry,said Sanjay Jain, Chairman, Confederation of Indian Textile Industries (CITI).

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Indian textile sector is the largest industrial employment provider, employing more than 100 million people directly and indirectly and a major industry for the economic growth of the country. Overall growth in exports during Apr - July 2018, therefore, stood 3 per cent vis-à-vis same period last year.

Further, the manmade fibre (MMF) segment, which is expected to be the growth driver of the industry in the coming years, has seen increase in production. Growth has been observed in production of man-made fibre, spun yarn and fabric during April-June 2018.


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Refunds of state levies and have started coming in over the last few weeks. Apart from that, the government has given policy support to boost textile and Also, the rupee has depreciated below Rs 70 level against a dollar. All these factors accumulatively acted to support India’s textiles and in July. While, it is early to say that the worst is over for textile and clothing exports, we expected at least 7-8 per cent growth in their exports this year,” said Rahul Mehta, President, Clothing Manufacturers Association of India (CMAI).

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India&’s textile and clothing exports, however, remained flat at $39.2 billion in 2017-18, a marginal growth of $39 billion in the previous year.

The imports growth of textile and clothing has come down significantly. While the imports of textiles and clothing has increased from US$ 1.78 bn in April-June 2017 to US$ 1.87 bn in the same period this year, an increase of 5 per cent, it is significantly lower than the growth of 16 per cent last year. The measures taken by the government to increase the import duty on various textile and apparel items will help in further reducing the imports in coming months.

First Published: Sat, August 25 2018. 23:18 IST
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