India will achieve $40.5 bn textile export target: Govt

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SME Times News Bureau | 10 Jul, 2012
The government is hopeful of achieving the upgraded textile export target of USD 40.5 billion for 2012-13 despite slowdown in demand from major western markets such as the US and Europe, reports media.

"We are hopeful of achieving the textile export target of USD 40.5 billion in current fiscal as compared to USD 33 billion in FY 12," Textiles Secretary Kiran Dhingra told reporters after inaugurating 55th National Garment Fair in Mumbai.

Dhingra said the Textile Ministry is concerned over the demand slowdown in major western markets like the US and Europe, but new markets like Latin America, Africa and Middle East have good potential.

"After sops were announced in the Foreign Trade Policy (FTP), exporters have responded positively and based on it we have revised this year's textiles exports target upwards from USD 38 billion to USD 40.5 billion," she said.

Segments, including apparel, handicrafts and carpets are upbeat about exports performance this year, she added.

During April-May this fiscal, the country's handicrafts and carpets shipments grew at an average rate of over 10 per cent year-on-year. However, apparel exports growth remained flat during this period.

"The textiles exports trend in the first two months have declined by 10 per cent compared to the last year, yet the industry is pinning hopes on the recent announcements in the FTP, rupee depreciation and new markets," Dhingra said.

During 2011-12, India's textiles exports touched USD 33 billion compared to USD 26 billion in the previous year.

To help the cash-starved industry, the government has announced the restructuring of debt worth Rs 35,000 crore to bail out the textile mills.

A meeting of a Group of Officers will be held on July 13 in New Delhi to formulate debt restructuring proposals on a case-by-case basis for the textile industry, Dhingra said.