India targets USD 48.5 billion textile and clothing exports
Aiming for an over 21 % rise in outbound shipments from the actual level of 2015-16, the government of India has fixed textile and clothing export target at USD 48.5 billion for the current fiscal, textile Minister Santosh Kumar Gangwar said. The country’s overall textile and garment exports remained almost flat at USD 40 billion in the last fiscal, said a senior textile ministry official. Still, the exports fell short of the official target of USD 45-47.5 billion for 2015-16
With demand from China remaining tepid and recovery in the developed markets like the US and the EU still fragile, the ambitious shipment target for the current fiscal would be hard to achieve, especially in view of stiff competition from countries like Vietnam, Bangladesh and Pakistan.
According to official sources, for its part, the textile ministry has sought a quick resolution of the India-EU free trade agreement, which would pave the way for duty-free access of Indian textile and garment items to the EU, which account for over a third of the country’s garment exports.
Gangwar said the ministry has spent over Rs 6500 crores (around USD 960 million) on various schemes for the promotion and development of the textile sector. Roughly 5 lakh (500000) additional jobs have been created in the past two years in the textiles sector, he added.
The textile sector in India may get access to credit at affordable rates. A national textiles policy will be announced soon. Efforts are also on to increase competitiveness of the Indian textile and apparel sector in global markets. India is looking at taking advantage of rising wage costs in China.
Textile and apparel exports managed a resilient performance in 2016, mainly on account of high growth registered in carpets, handicrafts, jute and even readymade garments. The amended Technology Upgradation Fund Scheme was rolled out in January 2016 with a budget provision of INR 17822 crores (USD 2.65 billion) for the next seven years. It is expected to attract an investment of USD 14.9 billion and generate jobs for 300000 people.
Also, the Integrated Processing Development Scheme was rolled out to provide up to 50 % assistance for common effluent treatment plants with a zero liquid discharge system, subject to a ceiling of INR 75 crores (USD 11.18 million). A 50 % subsidy may be granted to power looms operating on solar energy.
The aim is to increase the earning of handloom weavers to INR 500 a day. The total subsidy to be given is INR 3.75 lakh (USD 4842.50) to persons belonging to the general category, INR 5.62 lakh (USD 8 418.50) for the OBC category and INR 6.75 lakh or USD 9 908.5 to SC/ST.
Indian filament yarns export declines 24.1 % in April
In April 2016, all types of filament yarns export from India aggregated 32.2 million kg, declined 21.5 per cent YoY while value was down 24.1 % to USD 53 million. Filament yarns include polyester, nylon, polypropylene and viscose filament yarns and were exported to 80 countries from India during the month
More than 88 % of filament yarns were of polyester, of which, DTYs were the largest at 62.2 %. Brazil and Turkey continued to be the major importers of polyester filament yarns, followed by South Korea. The three together accounted for 47.6 % of polyester filament yarn exports. Brazil was also major importer of polyester DTYs and Bangladesh was major importer of PFYs.
USA was the major importer of nylon filament yarn in April while Sri Lanka and Japan were the other largest markets for nylon filament during the month.
Polypropylene filament yarns were exported to 13 countries in April and Djibouti was the major importer of PP yarns. USA and United Arab Emirates were the other major importers of PP filament yarns in April.
Viscose filament yarns were exported to 23 countries from India in April valued at US$4.1 million. During the month, 166000 kg of VFYs were exported to Japan. It was followed by USA and Germany.