The official target of textile export worth $45 billion seems difficult to achieve as China which usually accounts for over 70 per cent of India’s cotton and 40 per cent of yarn supplies, has cut down purchase. This despite the fact that the country’s overall textile and garment exports including those of jute, coir and handicrafts likely to increase by 4-5 per cent reaching $41 billion this fiscal compared with $39.3 billion a year ago mainly on higher shipments of garments.

As per sources, exports of raw cotton, including waste, and cotton yarn in the April- December period 2014 plunged by 36 per cent and 12 per cent, respectively, from a year before. Exports of textile products increased only 2.2 per cent between April and December from a year earlier. Lack of adequate focus and proper planning on boosting exports have also taken a toll despite the recognition of the textile sector’s role in the ‘Make in India’ concept and jobs creation. The government is yet to come up with the textile vision document even eight months after the report was first submitted to the textile ministry.

Textile and garment exports excluding jute, coir and handicrafts touched $25.72 billion during the April-December period, up 4.7 per cent from a year ago. Handicraft exports hit $3.9 billion in the last fiscal, recording growth of 18 per cent year-on-year. Experts expect the growth to be as much as 5-7 per cent in the outward supplies of these items in the current fiscal. Jute and coir exports, although not so significant in the overall basket, are expected to grow 10-15 per cent.

As per DK Nair, Secretary General of the Confederation of Indian Textile Industry (CITI), speculations are rife that the Chinese government has stipulated that on the purchase of every bale of cotton from overseas, a mill there has to buy four bales from domestic sources, which has dragged down imports. It has also been offloading cotton from its reserves. Moreover, the Chinese economy is also going through a slowdown, affecting demand.

Chairman of the Apparel Export Promotion Council (AEPC), Virender Uppal, points out garment exports witnessed 13.4 per cent growth during April-February 2014-15 to $15.26 billion from a year earlier that means export growth slowed since January after recording a 16 per cent increase until December this fiscal. But as per the index of industrial production data, the textile segment witnessed growth of just 2.1 per cent from April to January this year from a year before.