Textile ministry sets exports target of $45 billion for FY15

Exports have remained a core feature of India’s textile industry. Textiles Ministry has set textile export target at $45 billion for the current financial year. In FY14 India exported textiles worth $40 billion. India’s textile industry exports account for around 10 percent of the country’s export earnings.

In order to support the industry’s exports, the government has taken various measures such as Focus Market Scheme, Market Linked, Focus Product Scheme and Duty Drawback Scheme. Domestic textile players are also exempted on import duty on the import of capital Goods under EPCG and raw material under Advance Authorisation Scheme. Further, interest subvention was enhanced to 3 percent from 2 percent under Interest Subvention Scheme. With the government various initiatives, India’s global market share in textile exports increased to 5.2 percent in 2013 from 3 percent in 2002.

Textile industry contributes around 4 percent to the gross domestic product (GDP) and nearly 14 percent to industrial production besides providing direct employment to over 45 million people. The present market size of the industry stands at around $90 billion, which is expected to touch $220 billion mark by 2020.