The quick estimates of Index of Industrial Production (IIP) for August has showed an encouraging trend for the textile and clothing sector. The monthly index for textiles has increased from 116 during August 2017 to 125.1 during August 2018, showing an increase of 7.8 per cent. However, the cumulative index has increased from 116.3 during April-August 2017 to 119.7 during April- August 2018, showing an increase of 2.9 per cent.
Similarly, the monthly index for wearing apparel has increased from 121.4 during August 2017 to 144.3 during August 2018, showing a robust increase of 18.9 per cent. However, the cumulative index has increased from 142.6 during April- August 2017 to 144.2 during April-August 2018 showing a marginal increase of 1.1 per cent.
The general index for August 2018 is 4.3 per cent higher as compared to the level in August 2017. The cumulative growth for the period April-August 2018 over the corresponding period of the previous year stands at 5.2 per cent. Overall, exports in September at $28 bn is the minimum needed to reach the $350-bn mark milestone in 2018-19. Several items, including petroleum products, chemicals, drugs and pharmaceuticals, cotton yarn and fabric, handloom products and plastic, posted an increase despite the fall in exports.
In the first six months of the current fiscal, exports posted a growth of 12.5 per cent in dollar terms. Imports grew 16.1 per cent, according to some reports. October will witness good growth in dollar terms and will match the current trend. Textile Ministry had last month roughly estimated export growth for 2018- 19 to be about 16 per cent, which was the average growth figure for the April- August 2018-19 period. Exports grew 9.8 per cent in 2017-18 to $302.84 bn.
This positive development is just the beginning of revival, especially after industry faced two big economic reforms ‘Demonetisation’ and ‘GST’ implementation, it will motivate the players to make fresh investments in the industry.