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01 Mar 2024, Edition - 3153, Friday

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Textile markets firming up, says SIMA

Covai Post Network


Coimbatore: The country’s textiles and clothing industry registered a 5.37 per cent export growth rate during 2017 as against the global growth of 3.94 per cent, despite the challenges of demonetisation and GST.

Exports went up from $35.5 billion in 2016 to $37.4 billion in 2017 and textiles exports (yarns, fabrics and made-ups) by 7.82 per cent and the clothing exports (garments) increased by 2.82
per cent during 2017 when compared to 2016, Southern India Mills Association (SIMA) chairman P Nataraj said today.

India could remain the world’s second largest T&C exporter accounting 4.95 per cent global share, while China, the largest exporter, accounted 34.2 per cent share during 2017 and 36.7 per cent during 2015.

Countries like Germany, Vietnam, Spain and India are capturing the export space vacated by China and increase in exports by Germany was 14.65 per cent, Vietnam, 10.67, Spain 12.1 and India was 5.37 during 2017.

India could sustain as the largest cotton yarn exporting country registering a 25 per cent global market share and yarn export increased by 7.21 per cent compared to 2016, Nataraj said in a statement.

However, Vietnam that had 11.93 per cent global cotton yarn trade during 2015 could increase its share to 18.13 per cent in 2017 and registered 23.93 per cent growth as China has shifted its major volume of yarn imports from India to Vietnam, whose cotton yarn attracts zero duty while India’s was 3.5 per cent.

Vietnam does not produce any cotton and it imports large volume of cotton from India. The Indian spinning sector’s long pending demand of extending the MEIS benefit for cotton yarn export was yet to be considered and enable the Indian spinning segment to have a level playing field.

Recently, the Government extended MEIS (merchandise export from India scheme) benefits for all textiles and clothing exports beyond June 30, 2018, except cotton yarn, he said.

The stability and advantage in the homegrown cotton prices during 2016-17 and 2017-18 cotton seasons had helped the industry to mitigate the challenges.

Nataraj said early refund and clearing of Government dues would strengthen financial position of the exporters and all other textile manufacturing units to revive from the financial crisis and capture the emerging market opportunities.

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