In January, Indian cotton textiles exports fell by 16 per cent year-on-year. Apparel exports fell 14 per cent year-on-year. Manmade textiles fell seven per cent year-on-year.
Between April and January of last financial year and for the same period this fiscal, apparel exports dropped by five per cent. Usually orders are good between January and March. However, this year, exporters are cutting back orders because of the financial crunch. While the country’s exports are growing, decline in apparel and textile exports will bring down the share of the sector in the export basket. Annual textile and clothing exports this year might be the same as last year. However, yarn and garments are going to be lower.
Cotton yarn exports have declined by more than 26 per cent from 2013-14 to 2016-17 despite adding over three million spindles and 62,000 rotors of spinning capacity during this period.
There has also been a continuous rise in imports of textile products post GST. Imports of textile yarn, fabric and made-ups increased by 15 per cent from April 2016 to January 2017. Almost 55 per cent of garment exporters have not received the Rebate of State Levies since last July.