Textile and clothing export from India rose 5.4 percent in 2014-15, despite unfavourable government policies, complain companies in the sector. Textile and clothing export was $41.4 bn in 2014-15 as against $39.3 bn in 2013-14, according to The Cotton Textiles Export Promotion Council (Texprocil). Export of cotton textiles and raw cotton touched $11,353 mn in 2014-15 as against $13,306 mn in 2013-14, a fall of 14.7 percent.
Exports can do better this year if adequate and timely support is given by the government. They must include cotton textiles under the three per cent interest rate subvention scheme and release funds under the Technology Upgradation Fund. Also, recalibrating the product/country matrix under the newly introduced Merchandise Exports from India Scheme will have a direct bearing in improving India’s competitiveness in the short to medium term.
In spite of repeated representations, exporters are yet to receive the 2% additional duty credit scrips under the Market Linked Focus Product Scheme, announced in February 2014. Withdrawal of the Focus Market Scheme for cotton yarn has caused a steep decline in exports of cotton to non-conventional markets like Peru and Morocco. Delay in getting Duty Drawback amounts is another issue.