India is unable to complete its textile and apparel export target of US$100 million
The Confederation of Indian Textile Industry (CITI) said that Indian textile and apparel exporters may not be able to achieve the US$45 billion target in 2017-2018 due to the introduction of the Goods and Services Tax (GST) and competitors such as Vietnam and Bangladesh. suffered losses under the influence of the tariff preferences enjoyed.
Sanjay Jain, president of the Confederation of Indian Textile Industry, told a news agency that $40 billion is the closest to reality amid “disappointing” financial aspects. In 2017, the country’s textile and clothing exports were worth US$37.25 billion.
In the past three financial years, textile and clothing shipments have failed to meet the annual targets set by the government. According to data from the Directorate General of Commercial Intelligence and Statistics (DGCIS) of the Ministry of Commerce of India, the export value of all textiles and garments from April 2017 to February 2018 was 979.8399 billion rupees, a year-on-year decrease of 6.25%. In February alone, exports fell sharply by 13.86%.
Sanjay Jain said that due to the cancellation of countervailing duties and consumption taxes, India’s textile and apparel industries are facing a huge threat from increased imports. A sharp rise in imports will only worsen the situation, with Chinese textiles entering India via Bangladesh. After the implementation of GST, the industry’s effective tax rebates also declined, thus affecting export profits.
The association hopes the government will at least partially compensate the industry during the transition period.
Since China imposed an import tariff of approximately 3.5% on Indian yarn under the Asia-Pacific Trade Agreement (APTA) and provided duty-free imports to Vietnam, India’s cotton yarn exports to China decreased by 49% in 2013-2014, while Vietnam’s exports fell by 49% during the same period. Exports to China increased by 88% during the same period. (Title: India cannot meet US$45 billion textile and apparel export target)
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