India’s textile exports are likely to miss the target of $25 billion for the current financial year by about USD 7 billion due to the adverse impact of the rising rupee, an apex textile body said. Faced with declining growth in exports and pruning of jobs due to the rupee impact, the Confederation of Indian Textile Industry (CITI) has asked the government to reimburse not only the central taxes, but also the state levies.
“Under the difficult circumstances, we cannot be expected to export levies and taxes. While we get reimbursement of central taxes, the state levies add up to a tidy six per cent, which is quite a burden on the rupee-hit exporters,” said CITI Chairman PD Patodia.
India’s textile exports amounted to $19 billion last year and the target for this fiscal was set at US$25 billion. Exports declined by 18.25 per cent in April this year. He said over 35,000 workers have already been rendered jobless because of increasing lack of competitiveness by the Indian industry. “This figure could go up to five lakh during the current fiscal if immediate steps are not taken,” he warned.
Patodia said the pre- and post-shipment credit should be made available for the industry at six per cent, and the post-shipment credit should be extended from the present three months to one year.
– Bangalore Bureau