Textile machinery group likely to see an increase in exports this fiscal

This fiscal year, exports of textile machinery, equipment for spinning, spinning accessories, weaving preparatory and of other accessories likely to see an increase in the range of about 15 to 20 percent, after a year of marginal growth due to tepid international demand in 2016-2017.

S. Chakraborty, secretary for the Textile Machinery Manufacturer’s Association, said that the international market did not see much growth last year. Further, for exports to grow in a particular market, the manufacturers needed to have local facilities to provide after sales and service support.

China had been a big supplier of looms as they were available at very low prices. Accessories and spares from China were also coming into India in large quantities, Chakraborty said.

He added that demonetisation and GST had hampered domestic investments. However, this was expected to correct in five to six months and investments would pick up.

Textile industry sources said that the Centre should promote local manufacturing of machinery through foreign direct investment or joint ventures. While spinning and processing machinery were mostly available in the country, machinery for weaving and garment sectors were largely imported.

According to data available with the Textile Machinery Manufacturers’ Association, machinery exports in 2016-2017 were worth Rs. 2,438 crore compared with Rs. 2,351 crore the previous year.

Total production of textile machinery in the country was to the tune of Rs. 6,650 crore, including spares and accessories. The association data also showed that only about 32% of domestic demand was met indigenously. Imports amounted to Rs. 10,098 crore in the last fiscal year.