Rupee appreciation to affect textile exports

According to current estimates, total textile exports may stand at around USD 25 billion as against the projected target of USD 30 billion, Director (Market Research) in the Ministry of Textiles P Nayak said on the sidelines of a seminar organised by FICCI in Mumbai on Tuesday.

India's textile and apparel exports in FY 07 stood at USD 21 billion.

"The around 15 percent appreciation in the currency (rupee) value has badly affected textile exporters," Nayak said.

Presently, around 75 percent of the country's exports are to the US and European Union, he said.

Besides, the Non-Tariff Barriers (NTB) in major export destinations such as the US, EU and Japan, which were put in place in the post-quota period, has also posed challenges to domestic textile exporters, he said.

NTBs are import-restricting measures, other than tariffs, adopted by export-destination countries to curb imports.

These include anti-dumping and countervailing duties, quota restrictions, packaging and labelling requirements, testing, quarantine and other certifications, Nayak said.

"Proper listing of NTBs are essential in order to protect the interests of our textile exporters, who have already been affected by the surge in rupee value," he said.

Presently, nearly 44 percent of the country's exports to the US attract some form of NTBs, he said. - DDNEWS