There is a positive trend in the entire textile value chain as a result of pragmatic approach shown by the Union ministers of finance, commerce and industry, and textiles, on the issues of textile and clothing industry, the Confederation of Indian Textile Industry (CITI) has said. However, the rising imports of textile products remains one key area of worry.
As per RBI Financial Stability Report – December 2018, the stressed advance ratio of the textile sub-sector has been improving continuously. From 23.70 per cent in September 2017, the stressed advance ratio of the textile sector has come down to 18.70 per cent in September 2018, CITI chairman Sanjay Jain said in a press release.
Secondly, the exports of textiles and apparel stood at `18,965 crore during November 2018 as compared to `16,707 crore during November 2017, showing an impressive growth of 14 per cent. It is noteworthy that over the same period apparel exports have grown at a remarkable rate of 21 per cent, according to Quick Estimates data for the month of November 2018, released by DGCI&S, under the ministry of commerce and industry.
Further, the Index of Industrial Production (IIP) for textiles and clothing witnessed robust year-on-year growth during October 2018 as compared to October 2017. Textiles and apparel registered a growth of 6.2 per cent and 28 per cent respectively during October 2018. “I am delighted to see the positive IIP data,” said Jain.
He, however, pointed out that one key area of worry for the textiles and clothing industry today is the continuously rising imports of textile products, where the industry needs immediate attention and support of the government.
All the categories across the textile value chain (except fibre) have seen a drastic rise (between 15 per cent and 58 per cent) in imports during January-October 2018 vis-à-vis same period last year.
In the given scenario, the “biggest game changer that can transform the Indian textile and clothing industry and put it at par with its competitors, such as Vietnam and Bangladesh, are Free Trade Agreements (FTAs) with the EU, Australia, Canada and Britain for made-ups and garments, and reduction of import duty on Indian cotton yarn and fabrics by China,” Jain said.
“Another major issue which can enhance the export competitiveness of the Indian textile products is refund of all duties and taxes on exports across the value chain, as in principle, a country should not be exporting any types of taxes or duties,” he added.
He said that he is very much hopeful that the government would intervene in the matter and continue to support the textile industry, so that it can fulfil its $300 billion industry target and employment potential by 2025.