The Indian textile industry can draw much comfort from the Dun & Bradstreet study finding that, based on the estimated increase of 12.27 per cent in textile exports from the country in 2013-14, exports are sure to spurt by over 15 per cent to touch the targeted $65 billion by the end of the 12th Plan as envisaged by the Planning Commission’s special working group. The encouraging export performance is due mainly to the sustained investment flow into the sector to expand capacity in the entire value chain and abundant availability of raw materials such as cotton, wool and silk, as also skilled workforce. The sector got a further boost with the Planners’ approval of an allocation of Rs. 120 billion for the restructured TUFS during the 12th Plan. An additional allocation of funds for the scheme is likely, to ensure speedy revival of slow-moving segments like weaving. Also to benefit in the process is the technical textiles sector relying mainly on functional fabrics with applications across various industries.
Echoing a similar sentiment, Texprocil’s latest study has revealed that exports of Indian cotton yarn, known the world over for its quality and acceptability, are meeting the targets set, barring the seasonal fluctuations witnessed in April every year. Cotton exports in the first 10 months of 2013-14 totalled 1,082 million kg valued at $3.7 billion. The figure is expected to move up to 1,350 million kg worth $4.7 billion for the whole year. The rise is purely attributable to the Chinese preference for Indian cotton yarn whose prices, after payment of duty and taxes in China, are much lower than the domestic yarn rates in that country. Texprocil has repeatedly stressed the need for tactical policy changes to successfully tap this single largest market for Indian cotton and cotton yarn.
Given its excellent performance, particularly on the export front, industry circles are quite euphoric about the improved prospects for the textile sector which has proved the second largest employment provider, the second largest producer of cotton and is also ranked second in world silk production. Further, the sector contributes around 14 per cent to the Indian manufacturing output, four per cent to the GDP and 11 per cent to the overall merchandise exports. Corporate India strongly feels that the immediate task of the new Government at the Centre under Mr. Narendra Modi, after restoring public confidence, is to prioritise further development of such major exchange earning sectors as textiles.