Textile production, exports decline

The country produced 54,198 million square meters of textiles in 2008-09, of which it exported goods worth $18.52 billion (April-February) as against production of 55,257 sq metres and exports worth $22.13 billion in 2007-08 and production of 52,665 sq metres and exports worth $19.15 billion in 2006-07.

The quantum and value of textiles produced are compiled on the basis of production of the mills sector, handloom sector, decentralised powerloom sector, de-centralised hosiery sector as well as khadi, wool and silk, a government press release said.

The government launched a Focus Market Scheme (FMS) April 2006 as part of the Foreign Trade Policy-2004-09, under which 83 foreign markets were notified as focus markets. However, it has not so far allocated any funds for promotion of textiles exports, per-se, the release said.

The government has made all exports of textile products to these markets eligible for duty credit at 2.5 per cent of FOB value of exports.  Similarly, under the FPS, silk yarn is being given incentive at 1.25 per cent of exports since 1 April 2008. 

Hand-made carpets and other textiles floor coverings have also been included under this scheme with incentive of 5 per cent on exports since 23 February 2009. 

Under the Market Linked Focus Product Scheme, introduced on 1 April 2008, exports of garments to Australia, Japan and Brazil are given incentive of 2.5 per cent on exports with effect from 1 January 2009. In addition, garments exported to EU-27 and the US are eligible for incentive of 2 per cent of exports on FOB value from 1 April 2009 to 30 September 2009.