Mumbai: India's textile exports may cross $40 billion in 2010-11, short of the government's stated target of $50 billion, weighed down by the rise in rupee over the past year, ShankerSinh Vaghela, Union Minister of Textiles said.
The government is targeting textile exports of around $25 billion for 2008-09, Vaghela told in an interview late Wednesday. India missed its 2007/08 target by 18 percent due to the rupee appreciation.
"I understand that our $50 billion target is facing some challenges, but we are still confident of achieving more than $40 billion", Vaghela, who spoke in Hindi, said.
"A strengthening currency is good for any country. However our exports were hurt as exporters did not get the desired returns", he added. However, the worst is behind and exports will benefit now that the rupee has started falling again, he said.
Cotton production is also set to accelerate in the year ending September 2009 mainly due to an increase in productivity in Maharashtra and may cross 35 million bales, he added.
Production in 2007/08 is estimated at 31 million bales. One bale is equivalent to 170 kilogrammes. The Indian rupee rose over 8 per cent against the dollar between April 2007 and March 2008, making it one of Asia's best performing currencies. A stronger rupee hurts exports by making local goods expensive in overseas markets.
It lost 3.9 percent in the financial year that began April 1.