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India cuts textile and garment exports target to $45 billion

The government has trimmed the textile and clothing export target to $45 billion for the current fiscal. The total shipments in the last fiscal missed the initial target of $48.5 billion by a huge margin. The target for 2017-18 will nevertheless represent a 17 per cent rise from the actual level of $38.6 billion in 2016-17. While garments exports witnessed a marginal rise from the year before, textiles exports dropped in the last fiscal. According to provisional official estimates in 2015-16, the overall textile and garment exports were to the tune of $40 billion.

The exports were way off the target in the last fiscal, as demand from China especially for cotton and yarn was warmish and recovery in the developed markets like the US and the EU still remained fragile. Demonetisation, too, hit the labour-intensive sector, albeit temporarily, as many workers are paid in cash daily or weekly.

Official sources says that 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 more than a third of the country’s garment exports.

Talking about the Knitwear sector textile minister Smriti Irani commented that they will announce a big package for the knitwear industry which is facing several challenges in the next one month Irani, however, didn’t offer much details on the package.

The minister further added that roadshows were held in six countries the UK, the US, China, Russia, South Korea and UAE. To attract potential investors for the three-day Textiles India 2017 event, which will be inaugurated by Prime Minister Narendra Modi in Gandhi Nagar on June 30.

The government has provided Rs1,900 crore so far for a new duty drawback scheme that was announced as part of a special package for the garments industry in June last year For the current fiscal, the government has budgeted Rs1,555 crore for the remission of state levies (RoSL) to the garments industry under the duty drawback scheme.

 
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