Bilateral agreements with Australia, Africa to boost textile export

The Union textiles ministry through bilateral agreements with Australia, the Commonwealth of Independent States and Africa is trying chase target set to double textile exports in 10 years. The ministry is also working on a new textiles policy to promote value addition as free trade agreements (FTAs) with the European Union and the US are delayed.

Textile exports are unlikely to reach their 2015-16 target of $47.5 billion (Rs 3.17 lakh crore) because the figure was $32 billion (Rs 2.14 lakh crore) till December.

Last year, India’s textile exports were $42 billion (Rs 2.81 lakh crore), which was in large part cotton and yarn.

Indian textile sector might be a little short of target as the sector was at a big disadvantage compared to Bangladesh and Vietnam, as these countries exports textiles to the West at zero duty. Since India did not have FTAs with the US and the EU, Indian exporters face duties of 10-14 percent. But by and large the textile sector will achieve it, said Textile Secretary Rashmi Verma. ,

Verma said that the simplified textile policy is also ready and they are in the process of sending it to Cabinet. They should be able to bring it out in two months’ time. The policy focuses on increasing the contribution of value-added products from the current 25 percent.

Guidelines for a revised Textile Upgradation Fund Scheme have been finalized and these would be placed before the Cabinet soon.

Verma said that they are trying to balance the value chain so that value addition can take place within the country. The share of raw material will come down when the overall exports grow.