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Rana expresses concern over drop in textiles exports

Union Textiles Minister Kashiram Rana on Thursday expressed deep concern over the fall in the export of cotton handloom fabrics and made-ups in 1999-2000.

Speaking at a function organised by the HEPC in Chennai, the minister asked exporters to gear themselves up to halt the declining trend and increase the export level.

'The Handloom Export Promotion Council (HEPC) and the exporters should help achieve the target of Rs 24 billion fixed for 2000-2001', he said after giving away export awards to nearly 80 exporters from all over India.

He said the export value, during 1999-2000, of cotton handloom fabrics and made-ups was Rs 18.92 billion. The 1998-99 figure stood at Rs 20.08 billion.

Pointing out that these items were outside the quota restrictions in all countries except USA, Rana urged exporters to concentrate on innovative products keeping in mind the changes in fashion, colour and designs in overseas markets.

This is essential especially in view of the fact that once the Multi Fibre Agreement (MFA) is phased out (by December 2004) there would be 'increased competition' from countries like China and Pakistan, he said.

Rana said as an outcome of a MoU (memorandum of understanding) signed by India recently, the US had agreed to restore Generalised System of Preference (GSP) concessions to several handloom fabrics.

This would go a long way in increasing exports of cotton handloom fabrics to the American market, which imported nearly Rs 6 billion worth of textile products annually.

The Commerce Ministry was working out a 'minimum term export strategy' in consultation with export promotion councils and commodity boards to get a larger share in world trade which was now a meagre 0.6 per cent, he said.

Union Minister of State for Textiles Dhananjay Kumar, said the industry should be able to boost its exports from the present $11 billion to $35 billion by 2005 and to $50 billion by 2010.

In view of the regional blocks being formed, main countries which were importing cotton handloom from India might slow down their imports. The US Trade and Development Act 2000 might also adversely affect the textile industry.

The textile ministry had appointed a committee to study the implications of the US act, Kumar said and asked exporters to recommend suggestions to effectively tackle the issue.

The government would take appropriate action after analysing the implications of the act and devise strategy to counter the threat posed by it.

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