India is looking at increasing textile and clothing exports. New markets like Africa are being explored to widen the geographical spread of export market and reduce dependence on the developed world — mainly the US and the EU. India is also likely to renew focus on some segments that are already doing relatively well so that the country’s dominance is further entrenched in those areas.

Diversification to Africa will help India in the long run. The need to tap new markets has arisen more than ever, as China’s economy is set for a prolonged slowdown and the developed world is still struggling with a fragile recovery. To promote textile exports in new markets, India has raised support to outbound shipments of more textile products under the Merchandise Exports from India Scheme (MEIS). Most textile and garment items, which were earlier not eligible for many benefits, are now granted a three per cent duty credit scrip under the MEIS to tap markets such as those in Africa.

Overall textile and garment exports rose 0.6 per cent in the first half of the current fiscal from a year before while the country’s overall exports plunged by 17.6 per cent during the period.