February 8: Exports of synthetic and rayon textiles for the month December 1997 have increased by a whopping 22.14 per cent over the previous month from Rs 271.49 crore to Rs 331.61 crore. For the period April to December, exports have increased by 19.18 per cent from Rs 2,290.77 crore in 1996-97 to Rs 2,730.14 crore in 1997-98.In volume terms, exports increased from 16,178.46 tonnes to 19,505.21 tonnes. The growth iSn phenomenal considering the fact that south-east Asian countries have increased their presence in the European and Gulf markets, which happen to be the mainstays for Indian exporters. Exports, industry sources say, are likely to increase further in the last three months of the current fisal as this is the peak period. It was widely believed that exports would come down as the European Union has recently initiated six new anti-dumping cases.
However, industry observers say that the volume of sales of these six products is very small and is unlikely to affect the performance of the industryas a whole. Incidentally, India has more anti-dumping cases against it than China, although its total exports to the European Union are only one-third that of Chinese exports. Further, from January 1, 1998, textile exporters have lost whatever little preferential access they enjoyed under the European Union's generalised system of preferences (GSP). This is because the European Union is completing its withdrawal of GSP benefits from India's textile exports from that date. However, the benefits of the scheme were very small and its withdrawal is unlikely to hamper growth rates. The industry is targeting a figure of Rs 4,000 crore for the current fiscal, and going by the current trend it is likely to hit the target.
Among the star performers in exports was the yarn sector, which recorded a growth rate of 34 per cent between November and December 1997. Polyester filament yarn (PFY) exports have shown a impressive growth rate of 99.06 per cent during the yaer, mainly because of increased installed capacity anda glut in the domestic market. Polyester viscose yarn and polyester staple fibre grew by 16.38 per cent and 20.28 per cent during the year. As far as exports of fabrics is concerned, polyester filament recorded a growth rate of 57 per cent in December, with volume sales increasing to 1,151.30 tonnes from 741.45 tonnes.
Polyester cotton has bucked the trend by recording a negative growth in December, with volumes decreasing from 2,697.53 tonnes to 2,004.30 tonnes. However, for the period April to December as a whole, the sector still has a positive growth rate of 25 per cent.
The UAE has remained the main destination for exporters, accounting for 16.15 per cent of the total textile exports. The UK, with 13.52 per cent, Italy with 9.93 per cent, Belgium with 5.77 per cent, Saudi Arabia with 5 per cent and the USA with 4.62 per cent were the other main export areas.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
