Except the cotton yarn/fabrics/made-ups/handloom products category, all the other categories under the textile segment reported a decline in exports in February. Man-made yarn/fab/made-ups category has reported a decline of 2 per cent in the month to $388 mn, compared with $398 mn in the year-ago period.
Similarly, jute manufacturing (including floor covering) reported a decline of 10 per cent to $23 mn as compared to $26 mn in February 2018. The carpet and handicraft categories reported a decline of 3 per cent each to $111 mn ($114 mn) and $151 mn ($156 mn), respectively, in exports during the month.
Exports of the apparel segment, however, grew 7 per cent during the month to $1.544 bn, compared with $1.44 bn in February 2018. Following this, textiles and apparel exports in February saw a growth of 3 per cent to $3.094 bn, against $2.992 bn in February 2018. Cumulatively (April-February 2019), except the jute category, all the other categories under textile segment grew marginally. Meanwhile, the Union Cabinet’s decision to provide rebate over the State and Central embedded tax to the textile sector is being hailed by the exporters. This decision will lead to garment exporters ending up getting an additional incentive of 3.5 to 4 per cent on exports which will lead to revival of garment and textile exports from India, which had suffered a huge hit from past sometime.
The industry welcomed this step, but this is not enough to boost the garment and textile-manufacturing sector. Government should have at least introduced special interest subvention scheme for garment sector, which would have definitely given a big push to the sector.
Besides, the spinning industry has also thanked the Union Textiles Minister Smriti Irani for considering the long pending demand of the spinning sector and reducing the hank yarn obligation from 40 per cent to 30 per cent with effect from January 1, 2019. This will help the spinners bring down the cost and improve their competitiveness, thereby enabling Ease of Doing Business for the entire cotton textile industry.