Rising output costs hits textile export

Weak global demand and rising rupee were a problem, despite govt's booster package

Textile export contracted in calendar year 2016 for a consecutive year, due to weak global demand and India's losing competitiveness.

Data from the ministry of textiles shows a five per cent fall to $34.9 billion (Rs 2.3 lakh crore) for calendar 2016, from $36.7 bn in 2015.

In September 2016, the central government announced a Rs 6,000-crore package to boost textile export. This was on recommendations from the industry, and a commitment from it to raise annual export to $50 bn and create 100,000 new jobs.

"Textile demand remained sluggish, following uncertainty in globally economy. And, India has been losing its competitiveness to