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India’s share in cotton yarn and RMG market declines

Jul 23, 2021
India’s share in cotton yarn and RMG market declines

Mumbai

According to a report by Crisil Research, India’s share in global exports of cotton has reduced to 23% while on the other hand RMG share has stagnated at 3% to 4%. The report also stated that the global market shares in both RMG and cotton yarns have contracted because of the lack of FTAs and significant improvement in peer competitiveness.

Textiles hold a share of 11% in the total merchandise exports and the sector is also significant because it helps in the generation of employment in the country. The sector has also seen a slew of measures from the government which include the textile parks announced in Union Budget 2021-22. The government had also announced the inclusion of the sector for allocations under the production-linked incentive scheme.

According to the report, in 2020 when the government reduced export incentives according to the guidelines of the World Trade Organization, Indian textiles players were pushed to the brink. The report also said that the government has announced additional structural reforms so as to revive the textile value. It is also expected that the potential of man-made fibre will be improved with the announcement of the PLI scheme for man-made fibres and technical textiles.

It also stated that with the integrated textile parks scheme, it is expected that the sector will enhance its export share to long-term if the execution is done in a good manner. It was also stated that with continuous and concerted efforts, India can earn a favourable position as China is facing political backlash.

Source – Outlook

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