Ravi Kapoor, Textile Secretary expounds on the current scenario of Indian textile exports and reforms needed to boost them.
If India aims to be five trillion dollar economy, it needs to drive its exports first. “However, our exports are not very competitive on a global level, said Ravi Kapoor, Textile Secretary at Texcon 2019. “Our fears stem from the fact that we cannot sustain the onslaught of the most competitive country of a particular product in the domain,” he added.
Petroleum, gems and jewelry, engineering and textile constitute the chunk of India’s exports. “Out of this, we import petroleum, do a 6-7 per cent value addition on it and export the same to other countries,” added Kapoor. Similarly in case of gems and jewellery, we buy the gems, stones and diamonds from outside, do the cutting and polishing, add 5-7 per cent valuation to it and export the same. “It is only in the textile industry that we start from the fiber, do the entire processing, make the apparel and then export it to other countries, “he stated.
Being an integrated industry in India, textile has the potential to be explored. Around 70 per cent of countries across the world now use manmade fibers. However, India is still stuck with cotton. Studies show that in the next 15 years, the world usage of cotton is likely to decline to just 20 per cent. “Therefore, we need to explore the manmade fiber sector. Besides, we need to rationalise our tax structure and neutralise the inverted duty structures. The issues of refunds, blocking of working capitals, unnecessary wasting of time, money etc. also need to be sorted out,” noted Capoor.
Out of the total 45 -46 billion dollar global exports, there are just 10 companies who export goods worth more than 1,000 crores in India. In Vietnam, there is a park called Randon across 4,500 acre whose export turnover is 3 billion dollars. If we compare this to export turnover of the entire country, it is significant. So it is important that we focus on growing our exports.