Industry & Economy
-
Textiles
Synthetic, rayon textile exports may fall short of target
Anna Peter
Mumbai
,
Jan. 10
SYNTHETIC and rayon textile exports will perhaps not achieve this fiscal's target of $2,200 million.
One of the most promising segments of the textile industry, the synthetic textiles segment was affected by a number of factors such as the 45 per cent cut in DEPB in September and severe congestion at seaport JNPT which affected delivery schedules by months.
The sector had achieved 20 per cent growth during 2003-04 with total exports exceeding $1,900 million. The growth was considered exceptional considering that exports in 2002-03 were $1,750 million.
According to an industry source, the Synthetic and Rayon Textiles Export Promotion Council expects this year's performance to exceed last year's performance, but may fall short of the $2,200 million mark.
Part of the shortfall will perhaps be made up by the fact that the sector will now access the US market freely. Though this segment was not affected by the quota regime globally, the US had placed quotas to restrain imports. With the quotas now gone the US is likely to account for a substantial increase in business, since it is the world's largest importer of synthetic textile products. Although the cut in DEPB was effected in September, rumours of Government's intentions surfaced almost two months prior to the announcement further unsettling exporters, an industry representative said.
The Income Tax Department has also been reopening cases under Section 80 HHC, claiming that exporters had been unduly benefited by the DEPB. Exporters are being asked to pay up immediately or have their bank accounts frozen. This, said the expert, had affected business sentiment.
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
