Business

Textile Ministry Set To Fix Stagnation in Textile Sector Exports

The union government has expressed a desire to change the status quo of the country’s textile exports majorly catering to countries that have no free trade or preferential trade agreements. The indication was given by Aditi Das Rout, Trade Advisor, ministry of Textiles. She was speaking at a meeting organized by the Indian Texpreneurs’ Federation.

The advisor pointed out that stagnancy has crept into the textile export segment during the previous five years. India’s textile exports mostly cater to markets in the United States and European Union. The other destination countries that have started accounting for a significant volume of our exports are UAE, Bangladesh and China. Figures indicate that of the total volume of textile exports, nearly 63% reach destination countries that have no free trade agreements with India.

Currently, India enjoys free trade agreement with 10 countries and in addition has access to six preferential trade agreements. Rout stressed the need to examine and reflect on why the existing agreements have failed to boost our performance in the textile export segment. Rout explained that compliance and other issues worked out to be expensive for the SME sector companies dealing with the textile trade and this was the cause of anomaly.

Rout advocated that diversification into new markets and new products could mitigate this situation. For implementing the solution, the textile ministry will help the SMEs with strategic business moves like trend forecasting, display locations, and setting up warehouses in emerging markets that hold promise, she announced.