Home / Knowledge / News / Textiles / India's Economic Survey projects 7-7.5% growth in 2018-19
India's Economic Survey projects 7-7.5% growth in 2018-19
Jan '18
The relief from embedded state taxes (ROSL) announced in 2016 boosted garment exports by about 16 percent. Courtesy: Economic Survey
The relief from embedded state taxes (ROSL) announced in 2016 boosted garment exports by about 16 percent. Courtesy: Economic Survey
Reforms will allow real gross domestic product growth in India to reach 6.75 per cent this fiscal and will rise to 7-7.5 per cent in 2018-19, says the Economic Survey presented by finance minister Arun Jaitley in Parliament today. The gross value added at constant basic prices is expected to grow at 6.1 per cent in 2017-18 compared to 6.6 per cent in 2016-17.

Agriculture, industry and services sectors are expected to grow at the rate of 2.1 per cent, 4.4 per cent and 8.3 per cent respectively in 2017-18, a finance ministry press release said citing the annual survey. However, due to higher expected increase in imports, net exports of goods and services are slated to decline in 2017-18.

The Rebate of State Levies has increased exports of readymade garments from man-made fibres by about 16 per cent in India.

An unusual feature of India’s exports is that the largest firms account for a much smaller share than in other comparable nations. Top one percent of Indian firms account only for 38 per cent of exports unlike in other countries where they account for substantially greater share.

Stabilizing the goods and services tax (GST), completing the twin balance sheet actions of companies, privatizing Air India, and staving off threats to macro-economic stability are some of the key government agendas in the next fiscal, the survey highlights.

Three areas of policy focus stand out over the medium term: finding good jobs for the young and burgeoning workforce, especially for women; creating an educated and healthy labour force; and raising farm productivity while strengthening agricultural resilience, the survey adds.

Commenting on the Economic Survey 2017-18, Apparel Export Promotion Council (AEPC) chairman HKL Magu said, “The survey suggests an improvement in demand and investment, which should augur well for the economy as a whole, and the apparel sector specifically. The survey has rightfully pointed out that the Rs 6000 crore package announced in June 2016 has addressed the constraints faced by apparel firms to a large extent and the Rebate of State Levies (ROSL) has increased exports of ready-made garments (man-made fibres) by about 16 per cent. However, due to the delays in refund of state levies (RoSL) and IGST, the full benefit of the package has yet been realised. If the GST and RoSL refunds issues are smoothened, the industry can aim at achieving double digit growth.”

The Tiruppur Exporters’ Association (TEA) has hailed the survey which called for an expeditious elimination of embedded export taxes. “The survey said that exports will be biggest source of upside potential for the economy and has also specifically noted that textiles and apparel sector has tremendous potential for growth in exports and employment, particularly, women employment,” said TEA president Raja M Shanmugham in a press release.

He said that TEA has been requesting for expeditious elimination of embedded export taxes and has been appealing to the government to enhance the Rebate of State Levies (ROSL) mainly to compensate the embedded tax.

Noting that garment exports declined in the months of October, November and December 2017 by 42 per cent, 13 per cent and 13 per cent respectively compared to corresponding months 2016, he hoped that the government would announce some positive export measures to revive exports and sustain in the global market.

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Pyrates Smart Fabrics

Textiles | On 16th Jul 2018

Spain's Pyrates Smart Fabrics targets Asia, S America

Spain-based Pyrates Smart Fabrics, whose major markets are northern...

Bangladesh to modernise 3 jute factories to boost sector

Textiles | On 16th Jul 2018

Bangladesh to modernise 3 jute factories to boost sector

The executive committee of Bangladesh’s National Economic Council...

Courtesy: Asda

Apparel/Garments | On 16th Jul 2018

J Sainsbury agrees to £3.5 bn financing for Asda merger

J Sainsbury plc has agreed for a financing package of £3.5 billion in ...

Interviews View All

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Manuj Terapanthi

Transparent supply chain and fair trade will boost sustainable market

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Amiben Shroff

From its modest beginning in the late 1960s, Shrujan has grown into a...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search