New Delhi: Stung by rupee appreciation, India’s textile exports fell short of the targets by $4.5 billion in 2007-08, forcing the Textile Ministry to seek changes in the labour laws for enhancing competitiveness of exporters.
Against the target of $25 billion textile exports amounted to $20.5 billion in 2007-08, showing a growth of 9.4%, official data shows.
“In the long run there is a need for improvement in the infrastructure, labour law reforms and create a new business orientation in line with the global trends,” a textile ministry statement said here on Monday.
The textile exports grew by a mere 1.49% in the first half of the previous fiscal as against the year-ago period, while the situation improved in the second half of 2007-08, it said.
The statement said that as part of the medium term strategy the government has decided to continue with the Technology Upgradation Fund Scheme, Scheme for Integrated Textile Parks and the Technology Mission on Cotton in the XIth five year plan.
About 15% rupee appreciation between October 2006 and April 2008 hit the handicraft exporters in particular. After reaching a peak of Rs 20,963 crore in 2006-07, the handicrafts exports slipped to Rs 17,537 crore in 2007-08.
For giving boost to the sector by improving infrastructure, the government proposes to develop 10 additional textile parks by 2012 under the Scheme for Integrated Textile Parks, besides 30 textile parks are already sanctioned.
About 30 of these parks are likely to attract investments of Rs 16,953 crore and provide employment to 5.75 lakh people, besides producing goods worth Rs 27,386 crore annually, it said. The government has earmarked Rs 450 crore for the scheme during 2008-09.