Value of textile exports should be increased to $100 bn from $33 bn: Goyal

Goyal says PLI and mega textile parks scheme to be approved soon

Textiles Minister Piyush Goyal on Friday said the value of textile exports should be increased to $100 billion from $33 billion currently.

The government and industry should collectively resolve to reach the target of $44 billion of exports by the end of the current fiscal year for textiles and apparel, including handicrafts, Goyal, who is also minister for commerce and industry, told reporters.

“I have settled for $44 billion this year... I am sure nothing less than $100 billion will satisfy any of you, and certainly will not satisfy the government led by Prime Minister Narendra Modi," he said at a meeting with textile exporters.

The textile ministry is working closely with finance ministry to resolve the issue of pending dues on incentives for exporters, Goyal said. Even as the government is always open to considering all industry requirements, industries that don’t depend on subsidies and incentives from the government thrive much more.

He assured the industry that the production-linked incentive (PLI) scheme for textiles and mega investment textile parks is at an advanced stage of approval.

The minister also said that the government will not be able to force freight rates as it is a double-edged sword. The government will also take up the issue of container shortages and high freight rates with shipping lines.

Currently, the Department of Commerce, along with the shipping ministry and Indian Railways, are working towards finding a solution to the problem of container shortage hitting Indian exporters. Cabinet Secretary Rajiv Gauba had also chaired a meeting regarding this on Thursday. Container prices have jumped between 300 per cent and 500 per cent year on year (YoY).

Goyal also said that the problem is not unique to India. “If it’s a problem for you then it’s a problem for other countries as well. In a way, things are levelised,” he added.

The minister further said that the finance ministry is likely to set up a review committee to study the inputs given by the export boosting scheme Remission of Duties and Taxes on Exported Products (RoDTEP).

“If any of you feel that your product has not rightly received what is due... it will be examined by the independent committee,” he said, while reiterating that the scheme is not incentive-based, but only remission of unremitted levies.