As demand for textile exports in Europe and the US market continues to wane, India plans to divert its exports to other countries like Australia and the UAE.
Rachana Shah, Textile Secretary says, the Central Government is exploring new markets for its textiles besides consolidating its current ones. It aims to sign new FTAs with Australia and UAE besides boosting exports to Japan and Korea.
The centre is also negotiating FTAs with the United Kingdom and some other West Asia Countries. These FTAs will help the centre boost exports to $100 billion by 2030-end, adds Shah.
However, factors such as competitiveness, logistical costs and fragmented value chains may affect these exports, rues Shah. She recommends the introduction of more schemes like the PM Mitra and Production Linked Incentives (PLI).
The PM Mitra scheme will enable the government to invest Rs 500 crore towards setting up a textile park and Rs 300 crore to help it achieve the required investment target of Rs 70,000 crore, states Shah.
On the other hand, the PLI scheme for textiles will help attract new investments worth Rs 19,000 crore in the five years. The scheme also aims to achieve a cumulative turnover of Rs 3 lakh crore and create employment opportunities for 7.5 lakh people in the sector, adds Shah.
