As per estimates from the Directorate General of Commercial Intelligence and Statistics, the Indian textile exports industry has witnessed a YoY growth of 11% to touch Rs.19,636 crore in July 2018. In comparison, apparel exports grew by 6% YoY to touch Rs.8,757 crore. Exports of fabric, cotton yarn, handloom products, and made-ups increased by a total 23% YoY to Rs.6,284 crore. The favourable growth of the respective industries was accredited to rupee depreciation and supportive government policies.
Mr. Sanjay Jain, the Chairman of the Confederation of Indian Textile Industries, said that the industry has become globally competitive as a result of the devaluation of the rupee by 9% during the past few months.
Officials have also said that the government’s decision to refund the excess input tax credit (ITC) to the fabric and processing industry has lowered the cost of fabric by around 3% to 4% in total. Also, the government offered relief to small and medium enterprise (SME) manufacturers by way of easing the GST returns procedure.
Further, the growth in import duty on around 400 items has also helped the performance of the industry. The overall imports of the clothing products and textile industry grew by 5% YoY to a sum of $1.87 billion during the first quarter of the current financial year.
The textile industry, which employs over 100 million people in the country either directly or indirectly, is the largest provider of industrial employment in India. The sector is also a key area for India’s economic growth.
Sources: The Times of India, Business Standard