US slump set to hit textile exports target, says Rana

Bangalore, Dec 3: Economic slowdown in the US and the September 11 episode are set to drag down Indian textile exports target in the current fiscal, when it is expected to decline by six to seven per cent, textiles minister Kashiram Rana said on Monday.

Mr Rana said here in the first two quarters (April-September), textile exports declined by nearly 17 per cent in dollar terms but added that in the last two months (October and November), it has picked up and the figure has come down to 13 per cent.

“I am hopeful that by the fiscal end, the decline is expected to be six to seven per cent...Not more than that,” he told reporters after inaugurating the 23rd Congress of France-headquartered international silk association.

The minister said textile exports were of Rs 45,000 crore in 1999-2000, Rs 55,000 crore in 2000-01 and the target for the current financial year was Rs 64,000 crore.

Referring to the European Union extending some concessions to Pakistan by way of increasing textile exports from that country and benefit of zero duty, Mr Rana said India has taken up the matter with EU seeking a similar treatment and a high-level European Union team is expected to arrive in India in about one to two weeks.

He pointed out that Pakistan has also drastically reduced its import tariff for the benefit of EU.

India’s import tariff for textiles was “very high”, he said, adding after discussions with the industry and its various sectors, it has been decided to reduce import tariff by five to ten per cent category-wise.
“EU has indicated that if India reduced import tariff, it is ready to increase India’s textile export quota, like it did for Pakistan,” Mr Rana said.

According to the minister, India has also sought benefits under the generalised special preferences (GSP) from EU since it has been doing more to combat menace like drug and narcotics. These and other issues would be discussed during the coming visit of the high-level EU team. “We are preparing our case,” he said.

— PTI