Govt need to take urgent action to boost exports of cotton textile

The export 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, Cotton Textiles Export Promotion Council (Texprocil) chairman RK Dalmia said in a statement.

Exports of cotton textiles in August 2015 registered a negative growth of 7.39 percent as exports touched USD 863.18 million as against USD 932.02 million in August 2014. Texprocil sought government’s support to boost exports

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 biased import duties on Indian textiles in important markets like China and Canada are severely affecting exports.

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 to provide a level playing field. He 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 percent Interest Rate Subvention Scheme and releasing of funds under the TUF scheme.

Dalmia said that by recalibrating the product/country matrix under the newly introduced Merchandise Exports from India Scheme (MEIS) will provide necessary stimulus to the declining exports of cotton textiles in the next 200 days.

India’s exports declined in August 2015 for the ninth straight month by 20.66 percent with overall exports reaching USD 26.80 billion as compared to USD 21.26 billion in August 2014.

Exports of cotton textiles during April-August 2015 declined by 2.16 percent at USD 4.24 billion as compared to same period of the last year.

The global slowdown has also hit the country’s overall exports.

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