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India to set target of $38 billion for textile exports in 2012-13

07 May 2012 Evaluate

Despite a slowdown in demand from the western countries, India has set a target of $38 billion for textile exports this year. The target is 12% higher than that of last year’s $34 billion as India is expecting to tap newer markets of Africa and Latin America.

The US and European markets account for over 50% of India’s exports and are currently facing an economic slowdown. Hence India has resorted to exploring the markets of Africa and Latin America which it believes have tremendous potential.

India's textiles export performance has continued to lag its global competitors in the last few years. It has a meagre 4.3% share of the world market, compared to China's 28.3%. The Indian apparel industry is facing several challenges like labour, safety and health compliances in the global market which are affecting its competitiveness.

Moreover according to estimates, the share of textiles and clothing as a percentage of the country's overall export basket decreased from 15.97 percent in 2004-05 to 8.9 percent in 2010-11. The sector, which is the country's second largest employment generator after agriculture, employing 35 million people, was hit hard by the global economic slowdown.

The Economic Survey 2011-12 too had stated that India needs to diversify its export markets as its trading partners may resort to protectionist measures in the wake of global economic uncertainty.

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