Texprocil voices concern over slow export growth

The Cotton Textiles Export Promotion Council (Texprocil) has voiced its concerns over the slow growth of textiles and clothing exports, and has asked for the government's intervention in the matter.

The council said the county's export growth rate was slower than those of other Asian countries. "Exports from India to the US (the biggest textile importer) grew only 5 per cent in the calender year 2006 compared with 27 per cent for China, 26 per cent for Indonesia, 20 per cent for Bangladesh, and 23 per cent for Cambodia," said Prem Malik, chairman, Texprocil in a statement.

Despite restrictions on China, the country surpassed India in export growth. Attributing the slowdown to the sharp appreciation of Indian rupee vis-à-vis the US dollar, Malik urged urgent steps to rein in the rupee.

He requested the government to intervene in the matter so that domestic textile exporters did not lose their share in the world markets.

The severe pressure on prices, high interest costs, growing cost of inputs and high transaction costs on account of poor infrastructure were making exports from India highly uncompetitive.