According to a research made by ICRA on the Indian Textile Industry, revealed that following a 2% decline in the textile exports in the fiscal year 2015-2016, the exports are expected to rise by 6% (USD 40 billion) in the FY17. This advance of Indian textile exports from india is lead by the hike in the apparel segment and the higher fiber costs.
In the financial year 2016, there is a fall in the textile export value, was due to the lower fibre prices (both cotton and polyester) apart from of the growth in volume in most of the segments. In the Fiscal Year 2017, while the raw-cotton export is anticipated to decline and other parts such as apparels, shall see a positive volume development. Anil Gupta who is the Vice President of Corporate Sector Ratings, ICRA Ltd, said that this development will be forced by the improved export competitiveness backed up by the support of the recent financial package for the textile industry.
The growth in the export volume is expected in other segments like home furnishings and textile made-ups, apart from the apparel segment only, according to the estimate made by ICRA. In the fiscal year 2017, the average prices for fibre are also expected to stay higher, as compared to the previous year’s fibre prices. This will in turn to bear out the development in the textile exports’ value.
While the overall increase in volume tends to be confident in all sections apart from raw cotton, the yarn export volume may also come under pressure owing to the spurt in the domestic prices of cotton, said by Mr Gupta. By this sudden surge, the benefits of the recent package for the textile industry can be partly offset.