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Sluggish global demand and declining competitiveness is expected to mean less of export in 2014-15 for the textile and clothing (T&C) sector. The dip, say industry sources, should be five per cent.
On a stand-alone basis, though, apparel export is expected to show 10-13 per cent growth. However, this would be the lowest in recent years.
From Union textiles ministry data, the Business Standard Research Bureau says the 10-month period of April 2014 to January 2015 saw T&C export grow almost four per cent, to $34 billion. Extrapolated, it would mean $41 bn for the year, growth of 3.8 per cent. In 2013-14, this rise was 12.4 per cent, to $39.3 bn.
In June 2014, Union textiles minister Santosh Gangwar had said sector exports in 2014-15 were expected to grow 25 per cent to $50 bn.
Experts give several reasons for the subdued growth, also likely in 2015-16 if the current situation persists.
“There are several export-related incentives the industry has been demanding from the government. It faces reduced competitiveness as compared to peers. For next year to be better, the government will have to take steps to incentivise textile and garment exports further,” said D K Nair, secretary general of the Confederation of Indian Textile Industry.
However, garment exports will continue to grow at a little over 10 per cent, perhaps 10-13 per cent, said a senior official of the Apparel Export Promotion Council.
