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    India Textile Industry Government Subsidies Will Reduce Exports To Earn Foreign Exchange Into A Breakthrough

    2013/7/24 9:42:00 33

    IndiaTextiles And Exports

    India Spin The industry accounts for about 14% of the total industrial production in China. It is an important export industry in India. India once provided subsidies for the development of the textile industry. Recently, according to the WTO agreement on subsidies, India needs to gradually reduce its subsidies, India textile. clothing Due to the impact of the traditional market downturn, the export market will develop new markets and increase textile exports year-on-year.


    India's textile industry accounts for about 14% of the total domestic industrial production and 10% of its total exports, and its subsidy amount is about 310-320 billion US dollars. The industry employs 35 million, second only to agriculture. Because of the sluggish demand from Western markets, India exported $222 billion 250 million worth of textiles in the first 11 months of the past fiscal year, down 4.1% from the same period last year. Panna Lark, India's State Councilor in charge of textiles, said at the opening ceremony of an exhibition in New Delhi that she hoped that the performance of the national textile sector could improve in the current fiscal year, as demand from Western markets began to recover.


    Traditionally, 60% of India's textiles are exported to the European Union and the United States. The inflow of orders from the US market has started to grow, but demand from the European market is still sluggish. In order to promote India's textile exports, India's textile exporters began to open up new markets, such as Russia, Latin America and Africa. In the 2013-14 fiscal year, India's textile exports could increase by 15% over the same period last year, Barca LAK hemi said. The Minister of textiles said he would fully support the support of the textile industry, while the government of India plans to implement some new measures to promote exports.


    As an important export industry in India, the government has taken measures to subsidize textiles. According to the WTO agreement on subsidies, countries are allowed to provide export subsidies to domestic industries, as long as the industry's share of world trade is less than 3.25%. But India's textile exports account for 4% of the world's share and have been increasing in the past 5 years. According to the WTO rules, India needs to cancel its export subsidies to textiles by 2015.


    It is understood that this year, India garment exports fell about 5%, to 12 billion 900 million U.S. dollars, mainly due to the reduction of demand in the United States and the European Union, the two markets accounted for India's clothing. Clothes & Accessories More than 60% of total exports. At the same time, the United States, the European Union, Turkey and Japan are jointly putting pressure on the India government to cancel the "unreasonable" subsidy for textile exports. The India government hopes to gradually reduce export subsidies instead of "immediately" and "completely".


    The United States, the European Union, Turkey and Japan are jointly putting pressure on the India government to cancel the "unreasonable" subsidy for textile exports. However, as a key export industry, the India government hopes to gradually reduce export subsidies instead of "immediate" and "whole territory" cancellation. Senior officials from India's Ministry of Commerce and industry said the government would reduce export subsidies in batches in the next 3 years, but all steps would be extremely cautious. If the federal government immediately implements some of the measures expected to enact, exports may expand further. Of course, India textile and garment manufacturers should focus on improving internal efficiency rather than requiring preferential measures.

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