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ReturnIndia:Strong Rupee Halts Textiles Export Growth
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admin
PublishDate：
2007-07-06 15:03:00
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Exports of textiles may register negative growth during the second quarter (July-Sepember) of current financial year 2007-08 in case rupee continues to appreciate against US dollar. "Export growth of textiles during the first quarter of current FY 2007-08 is unlikely to be affected as most exporters booked their orders in advance.
In fact, textiles export may witness a marginal growth in the first quarter of the current fiscal," Mr Rahul Mehta, president of The Clothing Manufacturers Association of India (CMAI) told FE.Total exports of textiles registered at $17 billion in the FY 2006-07. "But for the first time in the textile history, export growth has halted. Once we loose the export it will be difficult to re-gain the export share in the world market. Our government should initiate some dialogue with the US and the EU governments on bilateral basis as we place huge import orders of principal products for example Aeroplane and against this; we should get some export preferences," Premal Udani, chairman CMAI said.
The industry expects the government to give export concessions to textiles exporters. The government should increase DEPB rates, he mentioned. "Our main competitors such as Sri Lanka and Bangladesh are enjoying major tax benefits from the US, Canada and the EU. Sri Lanka is enjoying zero duty benefits from Europe and Bangladesh from US and Canada; we are not getting any such advantages," Udani said.
The eleven top textiles producing nations have formed a federation called Asian Apparel Federation. The member countries should come together and create a trade block like Nafta as these countries account 75% of the world population said Mehta, who is also vice-president of the federation.
Source: Industry Website
In fact, textiles export may witness a marginal growth in the first quarter of the current fiscal," Mr Rahul Mehta, president of The Clothing Manufacturers Association of India (CMAI) told FE.Total exports of textiles registered at $17 billion in the FY 2006-07. "But for the first time in the textile history, export growth has halted. Once we loose the export it will be difficult to re-gain the export share in the world market. Our government should initiate some dialogue with the US and the EU governments on bilateral basis as we place huge import orders of principal products for example Aeroplane and against this; we should get some export preferences," Premal Udani, chairman CMAI said.
The industry expects the government to give export concessions to textiles exporters. The government should increase DEPB rates, he mentioned. "Our main competitors such as Sri Lanka and Bangladesh are enjoying major tax benefits from the US, Canada and the EU. Sri Lanka is enjoying zero duty benefits from Europe and Bangladesh from US and Canada; we are not getting any such advantages," Udani said.
The eleven top textiles producing nations have formed a federation called Asian Apparel Federation. The member countries should come together and create a trade block like Nafta as these countries account 75% of the world population said Mehta, who is also vice-president of the federation.
Source: Industry Website
