Indian textile and clothing sector to witness slow growth in export

India’s textile and clothing exports in the 10 month period of April 2014 to January 2015 witnessed growth of almost four percent to $34 billion as per the Union textiles ministry data. This means $41 billion for the year, growth of only 3.8 percent as against the rise of 12.4 percent to $39.3 billion in 2013-14.

Sluggish global demand and declining competitiveness is likely to see less of export in 2014-15 for the textile and clothing (T&C) sector. According to industry sources, it should be five percent.

On a stand-alone basis, though, apparel export is expected to show 10-13 percent growth. However, this would be the lowest in recent years.

In June 2014, Union textiles minister Santosh Gangwar had said that the T&C sector exports in 2014-15 were expected to grow 25 per cent to $50 bn.

According to experts there are several reasons for the subdued growth, also likely in 2015-16 if the current situation persists.
According to the Apparel Export Promotion Council, garment exports will continue to grow at a little over 10 percent, perhaps 10-13 percent.

D K Nair, secretary general of the Confederation of Indian Textile Industry said that there are several export-related incentives the industry has been demanding from the government. For next year to be better, the government will have to take steps to incentivize textile and garment exports further.

K Selvaraju of the South Indian Mills Association is of the view that almost the entire value chain, barring garments are witnessing a lower trend in export growth. For instance, the cotton yarn has an export capability of 140-160 million kg but it is seeing 110-120 mn kg only.