Early turnaround possible if Govt addresses issues – Mr Nair, CITI
June 15, 2009 - India
If industry experts are to be believed, Indian textile and apparel exports are in for a turnaround and may pick pace in the next few months. The exporters are venturing in to new markets as well as there are expectations of a turnaround in the traditional markets of the US and EU.
Figures released by Apparel Export Promotion Council indicate that shipments of apparels fell to US $908 million, $933 million and $800 million in, February, March and April 2009 respectively from $951 million, $963 million and $886 million in the same months of 2008. It was only in the month of January that, shipments of clothing recorded positive growth in growing from $923 million in January 2008 to $972 million in 2009.
spoke exclusively to Mr DK Nair, Secretary General of the Confederation of Indian Textile Industry who said, “During 2008-09, there was no growth in the textiles and clothing industry and as can be seen from the IIP data, production had fallen significantly during the second half of the year, offsetting some growth recorded during the first half”.
He continued, “In the case of exports also, the year would have ended flat, or with a marginal decline since March data has not been released yet, but quick estimates of DGCI&S, reported in the media show that there was a decline of 45 percent in cotton textiles compared to March 2008. This shows that the total for the year would be negative, compared to the previous year”.
“Profitability of the industry as evident from BSE results show that most of the units and the sector as a whole have made losses, though there are a handful of individual units, which have made profits and during 2009-10, there will surely be negative growth in the first half in production, exports and profitability.
He concluded by saying, “However, there can be a recovery during the second half, if government addresses some of the major issues meanwhile. The Central Budget and the National Foreign Trade policy would provide the opportunity to the government to do so”.