Readymade garments, cotton textiles help India’s textile exports surpass target in FY2013-14
The Dollar Business Bureau | @TheDollarBiz India’s overall textile exports have recovered to around $39.3 billion in FY2013-14, up about 12.6% from around $34.9 billion in the previous year and up about 15.6% from the $34 billion target fixed by the government for FY2013-14. Readymade garments and cotton textile exports accounted for a bulk of the total growth in textile exports in FY2013-14. Indian textile exports grew sluggishly in FY2012-13 due to slowdown in global trade and domestic demand also remained low. However, things changed in FY2013-14 and beyond. Santosh Kumar Gangwar, Minister of State in the Ministry of Textiles, informed the Parliament today, “It has not come to the notice of the government that textile workers are facing problems due to global and domestic recession now.”
Higher FDI inflows into the textile sector have also helped revive exports. According to Santosh Kumar Gangwar, FDI in textiles plunged from $164.19 million in FY2011-12 to $103.89 million in FY2012-13, but recovered strongly to $198.86 million in FY2013-14. The minister added that the government is implementing various schemes to ensure the maximum utilisation of FDI in textile sector including Technology Upgradation Fund Scheme (TUFS), Scheme for Integrated Textile Parks (SITP), Integrated Skill Development Scheme (ISDS), Scheme for development of Technical Textiles, and schemes for the development of the Powerloom Sector. India’s share among top global exporters (China, India, EU and USA) remains at around 9%, almost unchanged from 2011, while the share of USA and EU has declined from 8% to 6.8% and from 15.2% to 14.2% respectively in the same period. China remains the world’s largest textile exporter with around $274 billion worth of textile exports in 2013, accounting for a share of 70% in 2013, which is up from a share of 67.5% in 2011.
The Indian government has set an export target of $45 billion for FY2014-15 and is hoping that surging readymade garment exports will help meet the target. In the Union Budget 2014-15, the government has increased the duty free entitlement for import of trimmings, embellishments and other specified items from 3% to 5% of the value of exports to encourage exports of readymade garments.
However, jute, handloom and silk exports in India’s overall textile exports declined in FY2013-14 compared to the previous year. This article was published on August 14, 2014.