Textile exports may fall 10-15% in FY18 following paring of tax exemptions

Rising rupee, shift of import orders to competing countries to add to sector's woes; readymade worst hit with 41% decline in October

India’s textile exports are likely to decline by 10-12 per cent for the current financial year due to the reduction in tax exemptions granted to exporters, appreciation in the Indian rupee against the dollar and shifting of import orders to competing countries.

In an alarming situation, India’s readymade garments exports, which are part of textiles segment, declined by 41 per cent in October to Rs 5,398 crore ($830 million) compared to Rs 9,111 crore ($1.4 billion) in the corresponding month last year. Exports of manmade yarns, fabrics and made-ups also declined by 8.3 per cent to Rs 2,310 crore for