The export scenario is really grim, with overall exports from the country registering the sharpest fall of 14.8 per cent in the last three years at $22.4 billion in July, rendering it extremely difficult to achieve the $350 billion export target fixed for the current year. There has been a distinct fall in overseas demand for Indian products in general, particularly US and European enquiries for traditional textile products. The situation will deteriorate further in view of the uncertainties gripping the individual economies across the world, faced as they are with the worst-ever industrial slowdown. This has caused widespread concern among industry circles. However, Mr. Anand Sharma, Minister for Commerce & Industry and Textiles, remains unfazed and has rightly predicted a turnaround in India’s exports, especially textiles, after September-October. This optimism is based on the fact that textile exports for 2011-12 at $34 billion easily exceeded the target of $33 billion originally fixed.
This line of thinking must have influenced the Ministry to revise the export target for textile products for 2012-13 at $40.50 billion against $38.37 billion fixed earlier. As part of its export drive, the Government has also announced special incentives for the textile & garment sector, including those for exports to focus markets and exports of focus products. The comprehensive package covers financial assistance to textile exporters under the Market Development Assistance Scheme and the Market Access Initiative Scheme for enhancing the share in the existing markets as well as those unexplored so far.
Of far greater significance are the ongoing rescheduling of bank loans to the textile sector worth Rs. 35,000 crores and the recommended allocation of Rs. 15,886 crores for the Textile Upgradation Funds Scheme (TUFS) in the 12th Plan. While the recast of loans, the biggest-ever so far, will provide the much-needed relief for the crisis-ridden textile mills, the funds for technology upgradation will help the industry keep pace with the modernisation trends worldwide. The ultimate objective, as has been repeatedly emphasised by Mr. Sharma, is to restore the ailing textile industry to health as speedily as possible.