India’s falling exports has triggered major concern in The Cotton Textiles Export Promotion Council (Texprocil). India’s exports declined in August 2015 for the ninth straight month by 20.66 per cent with overall exports reaching $26.80 billion as compared to $21.26 billion in August 2014, according to government data released this week. Exports of Cotton textiles in August 2015 also registered a negative growth of 7.39 per cent as exports touched $863.18 as against $932.02 in August 2014. “This continuing decline in exports of cotton textiles is a matter of deep disappointment and concern requiring urgent action from the Government,” said R K Dalmia, Chairman of Texprocil. He pointed out that even though Indian cotton textiles products were competitive in the world markets, preferential access being given to some of our competing nations like, Bangladesh, Cambodia, Pakistan, South Korea, Turkey and Vietnam by major importing countries like the EU besides discriminatory import duties on Indian textiles in important markets like China and Canada are severely affecting export To provide a level playing field, Dalmia urged the Government to expedite the conclusion of FTAs with EU, Australia and Canada to remove trade barriers and gain market access to these leading countries. The Texprocil chief also urged the government to initiate dialogue with China and Turkey for reduction in the import duties imposed by these countries on Indian textiles. Besides, the government should consider the Industry’s demands to include cotton textiles under the 3 per cent Interest Rate Subvention Scheme, release of funds under the TUF Scheme, and recalibrating the product/country matrix under the newly introduced Merchandise Exports from India Scheme ( MEIS) scheme which have a direct bearing in improving India’s competitiveness in the short to medium term. This will provide the necessary stimulus to stop the fall of exports of cotton textiles in the next 200 days, Dalmia said.
