Indian textile exports are expected to grow by 18 per cent in financial year ’18. The US has already exited the Trans-Pacific Partnership, which is expected to realign the textile trade and move the global market towards the Indian subcontinent. Earlier the trade was diverted to Thailand and Vietnam.

Synthetic textile is expected to grow more following a fiber-neutral tariff policy. High polyester products which have a 15 per cent share in global trade are likely to grow in the context of India. Small players such as Bangladesh and Vietnam who enjoy the benefits imposed on India by US and European markets are likely to lag in exports. China’s focus on a shift to the technology sector was another reason that led to a decline in its share in global trade and an increase in the trade volumes of smaller countries.

The Indian export industry already enjoys significant advantages because of the government’s support to exports and declining interest rates. However, cascading taxes and a fragmented industry structure are the bugbears the industry currently faces before the implementation of GST. India’s textile sector contributes about 11 per cent to the country’s total exports.