Textile exports fail to meet expectations this year

11 Nov '06

1 min read

Failure of textile industry to cope with upcoming design trends has led to less than expected export growth in this financial year.

H K L Magu, Senior Vice Chairman, Apparel Export Promotion Council (AEPC), informed that exports increased 35 percent to $8 billion in 2005-06 but it has not met expectations this year. He said AEPC anticipates exports to reach $9.5 billion this year as 14 percent growth rate was achieved till July.

He added that Indian styles are becoming outdated due to fashion trends changing randomly in global markets, which is discouraging buyers. Local goods are still lying with exporters as placing of orders is being delayed by buyers.

Country's exporters have been expecting growth in business and foray into new markets since January 2005, when quotas were cancelled.

Magu informed that extension of TUFS is required, which will expire in 2007 and this is worrying exporters. He said they will appeal to Government for its extension within 2010 to avoid machine imports becoming more expensive.

AEPC is making efforts to negotiate the labour issues with Government, which is another problem faced by exporters.

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