Government to enhance competitiveness of textile exports

India’s textiles exports competitiveness is on downward trend even countries like Sri Lanka and Turkey are more competitive in the sector. The Commerce Ministry is considering bringing out its own strategy paper for the sector to enhance competitiveness of textile exports.

Textiles Ministry, too, is in the process of rolling out a National Textiles Policy, which aims to achieve USD 300 billion exports by 2024-25 and envisages creation of additional 35 million jobs.

The ministry’s move, to bring out the strategy paper, assumes significance as the country’s exports are in the negative zone since December 2014. Textiles exports account for over 10 percent in the total outbound shipments and the ministry is taking every step to boost the shipments.

Falling for the third straight month, exports declined steeply by over 15 percent to USD 21.54 billion in February.

India’s cotton exports have declined as its biggest market China had changed its policy on cotton imports.

India is the world’s second-biggest producer of cotton is likely to export 7.69 million bales of the fibre in 2014-15 marketing year (August-July), down by 35 percent from last year due to sluggish demand from China, according in reports.

But, textiles exports in February witnessed growth by about 9 percent to USD 1.53 billion.

The government is likely to announce some incentives for the textiles sector in the foreign trade policy, during the second week of next month.