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Govt. Expects Acceleration In Textile Exports

• By  Textile Excellence
• January 31, 2018

With palpable signs of the global economy all set to pick up in the months to come, the boost provided by government incentives to the textile shipments is expected to shoot up increase in exports from the current 16% that has already been registered.

In addition, the centre’s GST Council has indicated that it will perform a review in order to eliminate embedded export taxes like the ones on electricity, petroleum and so on. This is expected to further enhance India’s textile manufacturing exports.

Despite these positive signs, there is no single major player in exports that has shot ahead. Unlike in other countries, where top companies contribute to the bulk of the exports, the top 1% of the Indian firms account for just 38% of exports. This was stated in an economic survey report that was tabled in parliament recently.

According to the survey report, 75% of India’s textile exports emanated from six states, namely Maharashtra, Gujarat, Karnataka, Tamil Nadu, Telangana and Haryana. The survey further stated that there seems to be a strong correlation between export performance and states’ standard of living.

At the macro-level, government’s structural reforms like GST, Insolvency and Bankruptcy Code and other such measures that enhance the ease of doing business, have been augmented by further initiatives. The current government initiative has been to take up sector-specific reforms in steel, apparel, leather and power sectors. These are expected to redress specific challenges that turn up in these sectors

Textile Excellence