Indian govt urges textile exporters to expand market reach.

As India’s key textile export markets – the EU and the US – are experiencing slow economic growth, exporters in the country have been urged by the Textile Ministry to expand their reach, particularly to the eastern markets, to decrease their reliance on the two major markets.
 
Discussing the impact of eurozone crisis on India’s textile exports, Textiles Secretary Kiran Dhingra said she views the slump as an opportunity for Indian exporters to expand their market in the East as well as West, as till now they have mainly been focusing on the EU and US markets.
 
Speaking on the sidelines of Texcon 2012 organised by Confederation of Indian Industry (CII) - Northern Region, the official said the exporters are expecting shipments to decelerate over the next two quarters, and to rebound thereafter.
 
Handicraft and carpet exports from India grew at an average year-on-year rate of 10 percent during April-May 2012, while apparel exports remained flat during the period.
 
Meanwhile, banking on the positive response of the textile exporters following announcement of sops in the annual supplement of the Foreign Trade Policy (FTP), the Ministry has hiked the textile export target for the current fiscal, from US$ 38 billion set earlier to US$ 40.5 billion.
 
To boost exports, the Government has extended the interest subsidy scheme for one more year, till end of current fiscal. Also, garment sector has been brought within the ambit of the scheme, which already covered segments like handlooms, carpets, handicrafts and SME sector.
 
The market-linked focus product scheme in respect of apparel exports headed towards the EU and US has also been extended till March 31, 2013.
 
TT Limited Managing Director Sanjay Jain raised the issue of labour crisis and urged the Government to extend support for the sector, as many skilled workers engaged in the sector have shifted their hometowns owing to implementation of Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA).
 
He assured that if the Government extends support, the industry would also undertake to ensure 365 days of employment, even at its own cost.

Source : fibre2fashion.com