In financial year ’18, India’s share in the global textile and apparel trade could see an increase. This may happen given US’ exit from TPP and the likelihood of tax rationalisation under GST. Other helpful factors are strengthing of cotton production, cost and quality competitiveness due to increasing integrated fiber to apparel capabilities, the stimulus to exports, declining interest rates and a stable currency regime.
Meanwhile India’s exports of cotton yarn, both in terms of volume and value, dipped 11.6 per cent and 15.5 per cent during January to December 2016 compared to the corresponding period of the previous year. While December 2016 cotton yarn export volume grew 50.2 per cent, in value terms growth was only 20.1 per cent.
The drastic drop in the off take of cotton yarn by China has hurt Indian spinning industry. Inventory has been piling up and production in the powerloom, handloom and made-up sectors has come to a near halt.
The industry wants schemes like Merchandise Exports from India and Integrated Environmental Solutions to be extended for the benefit of cotton yarn as well. All other products in the textile value chain have been included in the list. It is felt that such extension to far-off destinations would help offset the high cost of transportation.