High growth expected in textile exports in FY18

The industry is likely to post a growth of more than 18 percent reaching an export of USD 20 billion in FY18 with a USD 7 billion in FY17.

The textile sector, which contributes about 11 percent of the total exports, is expected to show a high growth in exports during FY18.

The US has already exited the Trans-Pacific Partnership (TPP) which is expected to realign the textile trade and would move the global markets towards Indian subcontinent. Earlier the trade was diverted to Thailand and Vietnam.

The synthetic textile is expected to grow more post a fibre-neutral tariff policy. The surge in high polyester products which has a 15 per cent share in global is likely to grow in the context of India.

The Indian exports industry already enjoys significant advantages because of government's support to exports and declining interest rates. The cascading taxes and a fragmented industry structure are the downturns that the industry currently faces, before the implementation GST.

Small players such as Bangladesh and Vietnam who seems to enjoy the benefits imposed on India by US and European markets are likely to witness a lag in exports. China’s focus shift on technology sector was another reason that led to a decline in its share in global trade and increase in trade volumes of smaller countries.