India's overall exports of cotton textiles declined 0.1 per cent last fiscal. However, exports of cotton fabrics and made-ups registered 11 per cent and five per cent growth respectively. A steady growth in export of cotton fabrics and made-ups is expected to help the industry even as cotton textile shipments remain sluggish. Higher exports of value added products in the long run will lead to greater employment and higher level of investments.

The emergence of mega trade agreements by the US and the European Union among themselves and other key trading partners such as Korea, Vietnam and Japan poses fresh challenges for India. It would be in the best interest of the country to take an integrated approach rather than an ad hoc decision while negotiating new free trade agreements or re-negotiating old ones.

Given the country’s infrastructural drawbacks, un-rebated taxes on exports, high cost of inputs and preferential benefits given to competitors, the textile and clothing industry in India wants export concession from the government for a few more years. It wants an ensured supply of raw materials at par or below international prices. It wants the technology upgradation fund (TUF) to be reactivated and cotton yarn to be included in the Merchandise Export from India scheme.