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Govt sets textile exports target of $50 billion for FY14

20 Jun 2013 Evaluate

In a move to restrain the widening Current Account Deficit (CAD), the government has set an ambitious textiles exports target of $50 billion for this fiscal. Recently inducted Union Minister of Textiles K S Rao said ‘CAD is affecting the nation's economy and textiles sector is one sector where we can increase the exports substantially.

As per the textile minister, to boost the textile export, there is a need to encourage skill development as adequate skill development will boost the production and turn down the cost of production, leading the sector to grow which in turn will help it to compete in the international market. By adding further, Rao said that industry issues will be addressed soon affecting their growth. He also emphasized for reducing the role of middlemen in the entire value-chain to enhance the benefits for cotton farmers.

Currently, India’s textiles export is around $34 billion and employs about 4.5 crore people. However, faced with weak demand in global markets like Europe and the US, which account for 65% of the country's textiles exports, Indian textiles exporters are making continuous efforts to increase their presence in emerging markets like Latin America, Africa and Japan.

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