India’s textile export could touch $60 billion due to the exemption of customs duty on cotton in FY23: HEWA

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Biz News Desk235 Comments on India’s textile export could touch $60 billion due to the exemption of customs duty on cotton in FY23: HEWA

New Delhi (India), April 19: The Home textile Exporters Welfare Association (HEWA) claimed in a statement that India’s annual textile export in the fiscal year 2023 is anticipated to reach $60 billion, with the government fully exempting imports of cotton from customs duties till September 30, 2022.

HEWA, an apex body of the home textile exporters and manufacturers said the exemption would benefit the entire textile value chain—yarn, fabric, garments, and made-ups—and provide relief to the consumers. The move will also ease the pressure on demand, and stability in raw cotton prices, and end the volatile situation persisting for the last six months, thereby helping the textile exporters achieve splendid growth in FY23.

India witnessed a significant rise in textile export to the tune of $43 billion in 2021-22 compared to $33 billion in 2020-21 following various policy initiatives such as the extension of RoSCTL, the introduction of the RoDTEP scheme, Technical Textile Mission, PLI Scheme, PM-MITRA, releasing of due and arrears by the government and the geo-economic shift post-pandemic, stated HEWA.

The textile exports in 2022 could have been much higher had there not been a sharp rise in the cotton prices from October 2021. The price of the Shanker 6 variety increased from Rs 59,000 per cotton candy of 365 kg to Rs 95,000 per candy till April-2022.

HEWA has urged the government to stop the uncontrolled exports of raw materials to nations such as China and Bangladesh, which disrupt the supply-demand cycle of raw materials in India. The government must remove raw material incentives to boost exports of value-added commodities and maintain employment equilibrium in the textile industry. Value addition and finished goods can generate ten times the number of job possibilities and more than twice the amount of revenue in exports.

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