After a nightmare 2022-23 years the Indian textile sector is looking towards the Indian government to bail it out in the 2023-24 budget expected to be announced in February.
The textile sector was hit hard by the Covid-19 pandemic. The hammering was followed by the Russia-Ukraine war that killed the chances of revival in global markets. The Indian textile sector is concerned with a constant decline in demand in the export markets as the global recession shows no sign of easing. At the same time, domestic demand has been hit hard by the economic slowdown in rural areas. To top it all the industry expects cotton shortages – a problem they never faced in the last decade.
Indian textile exports have plummeted in the current fiscal year to only $21.14 billion in the first 10 months of this fiscal year compared with $44.43 billion during the 12 months of the fiscal year 2021-22. The total textiles exports would be less than $30 billion.
Readymade garments exports were $16.01 billion in 2021-22 and in the first 10 months of 2022-23 have just reached $9.16 billion. Cotton textiles exports slumped from $17.16 to $6.57 in the first 10 months of this fiscal. Similarly, manmade fiber exports declined from $6.29 to $3.21 during the period under review. Carpet exports were down to $0.81 billion from $1.79 billion and that of handicrafts reduced from 2.08 billion to $0.81 billion.
To overcome the crisis the industry is demanding an incentive scheme for the textile value chain. It wants stability in cotton prices and desires the government to set up a Stabilization Fund for this purpose. The industry stakeholder also wants the Technology Upgradation Fund Scheme abolished and replaced by the PLI-type scheme. Lastly, they urge the government to release pending refunds of over 40000 ATUFS cases.
