Comments
The textile sector in the country is expected to witness an improvement as export demand has begun to pick up, according to Dun & Bradstreet India.
“The recent pick-up in export demand is expected to improve the fortunes of the textile sector in the coming year,” according to the Textile Sector Outlook 2014 by Dun & Bradstreet India Senior Economist Arun Singh.
Revival of demand from the US market along with the continued weakness of the rupee against the US dollar is expected to aid in higher export realisation in rupee terms, the report said.
In dollar terms the total value of textile products exported from India touched $33 billion in FY’13, a decline of 3 per cent compared to previous fiscal.
Lower demand from key markets of the US and EU, which were reeling under recessionary conditions, was the major reason for the dip in exports during FY13.
However, growth in textile exports have picked up since April this year compared to the same period in the last fiscal year.
During April-September 2013, textile exports from India reached $16 billion, which is 8 per cent higher than the exports during the same period last year.
Pick-up in demand from the US market is the prime reason for this reversal.
“With the economic scenario in the US showing signs of a revival, demand for textiles from US consumers is expected to go up. This would help in the growth of textile exports from the country,” the report said.
Developed markets of the US and select countries in the EU region account for the bulk of textile exports from India.
Economic recession in these markets since 2008 had impacted textile exports from India.
To reduce the dependence on these markets the Government has incorporated several measures in the Focus Market Scheme.
Under the new measures, textile exporters would be able to avail of duty credit scrip on export to 26 additional countries apart from existing destinations.
Continued Government schemes in the form of policies such as the Focus Market Scheme would encourage exporters to explore markets outside the traditional destinations of the US and the EU.
These developments are expected to widen export markets for textile exporters and gradually limit over-dependence on select markets.
However, the report further said with domestic economic growth expected to remain subdued during the first half of 2014, an improvement in domestic consumption of textile products is still some distance away.
For the most part of 2012 and 2013 the textile sector was besieged by the twin impacts of slowing domestic consumption and a slowdown in export demand.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.