India’s textile and clothing exports in the 10 month period of April 2014 to January 2015 witnessed growth of almost four per cent to 34 billion US Dollar as per the textiles ministry data. This means 41 billion US Dollar for the year, growth of only 3.8 per cent as against the rise of 12.4 per cent to 39.3 billion US Dollar in 2013-14.
Sluggish global demand and declining competitiveness is likely to see less of export in 2014-15 for the textile and clothing sector. According to industry sources, it should be five per cent.
On a stand-alone basis, though, apparel export is expected to show 10 to 13 per cent growth. However, this would be the lowest in recent years.
Textiles minister, Santosh Kumar Gangwar had said earlier that the textile and clothing sector exports in 2014-15 were expected to grow 25 per cent to 50 bn US Dollar.
There are several reasons for the subdued growth, also likely in 2015-16 if the current situation persists, according to experts. Garment exports will continue to grow at a little over 10 per cent, perhaps 10 to 13 per cent, AEPC sources feel.
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 now 110-120 mn kg only.
