Mumbai: On the background of the declaration made by the Indian Government in the last month regarding the new policy for the textile industry, ICRA Ltd. has estimated that textile exports would increase by 6% in the financial year 2016-17 reaching US $40 billion. The increasing demand for the cloth and the price hike of the thread will lead to increase in exports, estimates the credit rating agency. Even after the financial volatility at the global level there will be a rise in exports of the country, expects ICRA.
The decreasing cost of cotton and fibre has lead to decrease in the growth of textile sector. It is estimated that there will be a decrease in the exports of raw cotton in the year 2016-17. However, there is an expected rise in the textile exports at the same time.
In order to face the increasing competition in the textile exports, the co-operation extended by the government would lead in the increase of textile exports, said Anil Gupta, Vice Chairman of the corporate sector rating, ICRA. He further said that along with the textile exports there would be an increase in the export of the cloth used for household decorations. He expects that the price hike of fibre in the current year as compared to that of the previous year will prove beneficial to this sector.
In the current financial year, there has been a fall in the textile exports by 6% in the first two months bringing the exports at $5.7 billion. But, the scenario would change in the coming few months as estimated by the experts.
There has not been much difference in the past three years in the overall textile exports of India. In the year 2014-15 the exports were $41.4 billion, whereas in the year 2013-14 the figure was $39.31 billion. However it is believed that the co-operation from the government will help in increase of exports.