For 2014-15 India's exports of textile and clothing may dip by five per cent. The reasons for this are: sluggish global demand and declining competitiveness. On a standalone basis, though, apparel export is expected to show 10 to 13 per cent growth. This would be the lowest in recent years.

The 10-month period of April 2014 to January 2015 saw textile and clothing export grow almost four per cent. There are several export-related incentives the industry has been demanding from the government. It faces reduced competitiveness as compared to peers. For next year to be better, the government will have to take steps to incentivise textile and garment exports further.

Almost the entire value chain, barring garments, is witnessing lower export growth trend. Exports of cotton yarn are 110 to 120 million kg while the export capability is 140 to 160 million kg of cotton yarn. In June 2014, estimates were that the sector’s exports in 2014-15 would grow 25 per cent. The apparel and textile industry in India accounts for 14 per cent of total industrial production, contributes to about 30 per cent of total exports and is the second largest employment creator after agriculture.