Overview of the cotton & textile industry

12 Jun '08

4 min read

Overall exports recorded a growth of 10.2 percent during the first ten months (July- April) of the current fiscal year against a growth of 3.6 percent in the same period last year.

In absolute terms, exports have increased from $ 13.8 billion to $ 15.3 billion. Broad categories of exports suggest that with the exception of textile manufactures, all other categories of exports registered stellar growth.

Textile manufacturing, accounting for almost 57 percent of total exports, performed poorly as it registered a decline of 2.5 percent. The government has provided financial support to the textile sector through R & D during the current fiscal year.

Even this financial support could not help improve the performance of textile exports. It is therefore, clear that the problems are structural in nature and cannot be resolved through financial support of the government.

Export of textile manufacturers, accounting for 57 percent of total exports, not only registered a negative growth of 2.5 percent but also was a drag on the overall performance of exports.

With the exception of raw cotton and other textile materials, all other major components of textile manufactures registered negative growth in the current fiscal year. It is important to note that the unit value of all the major components of textile manufactures were up substantially but exports in quantum terms registered a sharp decline across the board with the exception of raw cotton.

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