Home / Knowledge / News / Textiles / Govt can help turn crisis into opportunity for exporters
Govt can help turn crisis into opportunity for exporters
Jan '09
In the last few years the Indian exporters have been able to create a niche for themselves in global markets. This comes from delivering products of exceptional quality as well as on time at competitive rates. According to experts, this acceptance can be turned in to an opportunity by these exporters.

For instance, for the last many years, Indian textiles have been well accepted in international markets for their exceptional quality, so even if these products were to be expensive by a small margin, the buyers would still flock to Indian shores, since the domestic exporters have created a good reputation in the international market.

But the current price difference, when compared with those of other countries is very much on the higher side to entice an international buyer. This price difference comes from the high cost of basic raw materials which normally averages around 50-60 percent of a finished product cost. Other than raw material costs, high logistics and capital costs are hampering the growth of the industry.

Indian cotton is priced at least 14-15 percent higher than those prevailing in global markets. Further, in the new cotton season that began a few months ago, the government decided to increase the Minimum Support Price (MSP) of cotton by a whopping 25-40 percent which resulted in increased pressure on the textile exporters.

The other most important raw material, Polyester fibre also attracts a 5 percent customs duty in addition to 4 percent special additional duty (SAD). But here again, the exporter is not able to avail the benefit of using the advance license system and benefit from buying raw material from global markets as, he looses the drawback given in lieu of other duties and taxes paid by him

The other most important cost centre is the cost of transportation. It is cheaper to ship material to nearby foreign countries from the nearest port, than transporting the same volume within the borders of India by road. The other issue confronting the textile exporters is refund of state taxes and duties.

While the central government refunds the duties and taxes it receives from the exporters, it would help the exporters if the states were also to do so. High working capital costs also add to the already lofty overheads the textile industry is incurring. The exporters are in position to deliver exceptional results if they could access dollar loans at affordable rates.

All these factors, if looked in to by the government of the day, could help the exporters ride out the crisis and at the same time grab competitor shares, since the other two major countries like China and Pakistan are facing problems of their own which is nullifying their competitive spirit and thereby could prove to be an prospect for Indian textile exporters, to turn crisis in to an opportunity.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 27th Oct 2016

Teijin Frontier develops Solotex RC lightweight fibre

Teijin Frontier Co. Ltd, fibre products converting company and part...

Tosha Hays addressing the conference. Courtesy: College of Family and Consumer Sciences, UGA

Textiles | On 27th Oct 2016

Industry experts discuss future of fabrics at UGA

Industry experts, researchers and military officials discussed the...

Courtesy: Global Denim Awards

Fashion | On 27th Oct 2016

Anbasja Blanken & Italian mill ITV Denim win GDA

Dutch designer Anbasja Blanken and Italian mill ITV Denim was the...

Interviews View All

Jurgen Gauger

‘Buying crowdsourced or creative designs are much more appealing to the...

Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marcel Alberts

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Mike Hoffman
Gildan Activewear SRL

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search