Indian textile sector can easily add another USD 4-5bn to its exports with ease in FPS

Indian textile has a global exports share of just 3.5 percent that leaves huge scope for increasing it and the potential to export an additional USD 4-5 billion as China, which enjoys 35 per cent share, is slowly reducing its exports.

If the government eases tariff burden and raise overall concession under the Focus Product Scheme to 7 percent, the textile industry can easily add another USD 4-5 billion. The country’s textile exports stood at USD 40 billion last year, stated Texprocil Chairman Manikam Ramaswami.

The government should use the Focus Product Scheme as stated in the policy and increase the concession to 7 percent to the entire textile sector from the current 2 percent.

Under the scheme, those sectors which have given maximum employment, gets most net foreign exchange and ships to countries at long distances, can get the 7 percent and the textile sector allies with all 3 parameters, he added.

The textile sector creates one lakh direct jobs in garments and home textile for USD 1 billion turnover.

The textile sector has also requested the government to extent the 3 percent interest rate subvention to the entire textiles sector.

Meanwhile, Minister of State for Textile S K Gangwar, while addressing at the Texprocil Awards function, said that textile under the new government is committed to realizing the sector’s potential in creating millions of jobs and providing solid policy support for which the ministry has been continuously interacting with the captains of the industry and cross-section of other experts for identifying the areas, where major policy push is required to stimulate further growth.