The Hindu Business Line : `Value-added textile exports to surge in post-quota era'

Mr. Lalit P. Desai (right), Chairman, The Cotton Textiles Export Promotion Council (Texprocil), and Mr Prem Malik, Vice-Chairman, at a press conference in Mumbai on Monday. - Shashi Ashiwal

Mumbai , Sept. 20

THE Cotton Textiles Export Promotions Council (Texprocil), which is undergoing a re-orientation to transform itself from more of a regulatory body to a promotional body, sees Indian exports of value-added products, especially cotton made-ups, surging in the post-quota regime.

"The export targets for cotton textiles set by the Government for the current fiscal is $4.2 billion. With the removal of quotas at the end of 2004, export of items like cotton yarn and made-ups, which are under quota restrictions to the US and the European Union (EU), are likely to increase sharply," according to Mr Lalit Desai, Chairman of Texprocil.

He told press persons here on Monday that the expected removal of quotas has led to an increase in investments in the weaving and processing sectors with a large number of companies consolidating their holdings.

"Reports of leading manufacturers, who had invested overseas with a view to taking advantage of the quota regime in the neighbouring countries, are now bringing back their investments into India, as the process of vertical specialisation would lead to substantial cost savings in the manufacture of value-added products," he said.

Export of cotton textiles during the period of April to January 2003-04 increased to $3.18 billion (Rs 14,770 crore) compared to $3.03 billion (Rs 14,276 crore) in the same period of the previous fiscal, marking an increase of 5.6 per cent in dollar terms and 3.46 per cent in rupee terms. Out of this, cotton made-ups have emerged as the "engine of growth" for textile exports with a share of 44.5 per cent.

"This trend reflects the shift in favour of value-added exports like made-ups from commodity-based exports like yarn and fabrics," Mr Desai pointed out.

On Texprocil's changing role, he said the council was preparing itself to become more of a promotion body in the post-quota regime through renewed thrust on marketing , creating a knowledge centre for providing information and training to exporters and seeking ISO-9000 certification for quality services.

"We will be identifying new markets, like those in North America, West Asia , Far East and Africa. We will also be taking delegations to the new markets as part of our promotional activities," he said.

Mr Desai pointed out that Texprocil was in the process of bringing out 10 country-specific reports and providing detailed market analysis of those markets, to help the exporters.

Three of these reports were released on the occasion of the Export Award and Golden Jubilee Commemoration function of Texprocil, organised later in the day by the council.

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