India’s textile exports fell by 24.3 per cent during the first nine months of the current calendar year. Exports of cotton textiles fell by 3.58 per cent. Textile and clothing exports fell by 5.71 per cent and garment exports by 12.02 per cent. However, textile and clothing exports showed a marginal growth of 0.54 per cent during the first half of the current fiscal as compared to the corresponding period of the previous year.

The industry has been passing through a severe recession for almost 18 months and has called for a slew of policy measures. It appealed for the release of adequate funds to clear all pending TUFs subsidies and a three per cent interest subvention for all textile products. It wants the hank yarn obligation to be reduced to 20 per cent from 40 per cent, the cotton trading policy to be industry-friendly, and the five per cent import duty to be scrapped.

The industry also feels there is a need for addressing raw material issues and implementing a direct transfer of cotton subsidy to farmers. World trade has been undergoing certain structural changes and this has had a severe impact on Indian exports.