Mumbai, Mar 9: Cotton textile exports are expected to grow by 9 per cent at USD 9.56 billion in the current fiscal as against USD 8.42 billion in the previous year despite adverse market conditions in key markets of the US and European Union, an industry body said today.
“Cotton textiles are amongst the select few items in the textile and clothing basket that have shown positive growth in exports during the current fiscal (2012-13).
“Current trends in exports indicate it will surpass the target of USD 9 billion set for the sector and reach USD 9.56 billion,” Manikam Ramaswami, Chairman of Cotton Textiles Export Promotion Council (Texprocil), told reporters here.
The yarn export is estimated to grow at 8 per cent, fabrics 9 per cent and home textiles 10 per cent in FY 13.
The council has set up higher cotton textile exports target of 20 per cent in FY14, he said, adding the industry needs to maintain momentum by ensuring raw materials are available at international prices to Indian manufacturers.
The textile industry seems to have fully recovered from the losses it incurred in the previous years when there was a severe volatility in the national and international markets. The Budget for 2013-14 has given a push for modernisation and expansion of the industry, he said.
The industry is looking at expanding exports to Japan and South Korea, who offer zero import duty, and Australia, with which India is expected to sign a Free Trade Agreement, Ramaswami said.
Texprocil has asked the Centre to request Cotton Corporation of India (CCI) and NAFED to start selling their large inventory to remove the artificial shortage and restore international price parity which is important to help maintain export momentum, he said.
The Government should ensure that Indian cotton is made available at international prices or lower. Importing cotton at higher international prices would only exacerbate the current account deficits (CAD) at a time when the country needs to increase exports and reduce trade gap, he said.
Domestic cotton prices are ruling at 3-5 per cent higher than international rates in spite of India having surplus cotton overall.
