Textiles and clothing exports from India recorded a marginal 5.43 per cent growth in 2014-15 despite unfavourable government policies which make Indian exports uncompetitive in developed countries.

According to industry body The Cotton Textiles Export Promotion Council (Texprocil), textiles and clothing exports were recorded at $41.4 bn in 2014-15 as against $39.31 billion achieved and $43.19 billion target set for 2013-14.

"We require level playing field in terms of interest rate, timely release of incentive and policy support as our competitors enjoy. Through basic manufacturing, we are very much competitive. But, because of other issues cited above, we become uncompetitive," said R K Dalmia, Chairman, Texprocil.

Exports of cotton textiles (including raw cotton) touched $11,353.15 mn in 2014-15 as against $13,306 mn in 2013-14, registering a steep decline by 14.68 per cent.

"Exports in the current fiscal year can do much better, if adequate and timely support is given by the government. The government must include cotton textiles under the 3 per cent interest rate subvention scheme and release funds under the technology upgradation fund scheme (TUFS).

Also, recalibrating the product/country matrix under the newly introduced Merchandise Exports from India Scheme (MEIS) scheme will have a direct bearing in improving India's competitiveness in the short to medium term," said Dalmia.

In spite of repeated representations exporters are yet to receive 2 per cent additional duty credit scrips under the MLFPS (Market Linked Focus Product Scheme) which was announced in February 2014. The Government has also curtailed the benefits under the Incremental Export Incentivization Scheme (2013-14) to a maximum Rs 0.20 crore which was not there in the original scheme.

The withdrawal of Focus Market Scheme for Cotton yarns has caused steep decline in exports to non-conventional markets like Peru, Morocco etc. The delay in getting Duty Drawback amounts from JNPT Customs has further aggravated the situation for the exporters.

"On addressing these issues, India would be able to achieve the target of $45 billion. Otherwise, achieving this target is difficult," said Dalmia.

Source:business-standard.com