The Government of India has revised its textiles export target for the current fiscal 2012-13 to $ 40.5 billion, from the earlier set target of $ 38 billion, according to a fibre2fashion report. The textiles and apparel sector in India is upbeat over exports after announcement of sops in the Annual Supplement of Foreign Trade Policy (FTP) and hence, the Government has revised the textiles export target upwards for the current fiscal, Textiles Secretary Kiran Dhingra said.
Despite the ongoing slowdown in India’s traditional markets like the US and Europe, textile segments such as garments, carpets and handicrafts are expected to perform well this year, she added. In order to boost exports, the Government has extended the interest subsidy scheme for one more year till the end of the current financial year. This will benefit carpet, handloom, handicrafts and SME sectors. In addition, the Government has also included the apparel sector in the scheme, noted the report.
For clothing exports to the EU and US, the Government has extended the market-linked focus product scheme till March 31, 2013.
The Export Promotion Capital Goods (EPCG) Scheme for technology upgradation has also been extended till the end of the current fiscal. The scheme allows capital goods import at zero percent customs duty with an obligation to export goods worth at least six times of duty saved in six years. During the first two months of the current fiscal, India’s carpet and handicrafts exports rose at ten percent year-on-year, while garment exports growth remained flat, the report pointed out.
The Textiles Secretary said the exports trend during April-May period was slow compared to the corresponding period of the previous fiscal, but the textiles industry expects the export growth to be much better in the remaining months due to new markets, depreciation of Indian currency, and the recent announcements in the FTP. To reduce their dependence on traditional markets like the EU and the US, Indian textile and garment exporters are exploring new markets such as Russia, Japan and some Latin American and African countries. Last fiscal, India’s textiles exports, including apparel exports, grossed $ 34 billion, much higher than the $ 26 billion worth of exports registered in 2010-11 added the report.