Textile Industry Case Study

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Abstract:- Exports have played a significant role in India’s economic growth and in this the textile industry is one of the leading segment in India’s Economy. The textile sector has played a vital role in the contribution to the foreign exchange earnings and it also contributes in the employment rate of the country. This industry accounts for four percent of gross domestic product, twenty percent of industrial output and slightly more than thirty percent of export earnings. This study is to examine the export performance of cotton ( Hs code 52, sub product- cotton yarn). To satisfy the research data has been collected through the secondary sources and it has been collected from International trade centre and Indian trade classification (harmonized…show more content…
However, a conscious reduction in the protectionist attitude is expected to have a positive impact on the cotton textile sector. Policies are designed and implemented in a way to ensure the modernization of weaving machineries. Further, as the sector becomes more competitive and driven by market forces, the overall productivity of the textile industry will be enhanced. More investment in the form of FDI will further support capital-intensive production and thereby boost the efficiency by helping to realize economies of scale. The Indian has provided incentives to manufacturers for establishing export zones or export parks, in the form of exemption from certain labour regulations and through provisions for land purchases, credit and taxes. As in the case of gems and jewellery exports, this sector too is one of the thrust areas for the National Manufacturing Policy given its high employment intensity and implications for growth of the SME…show more content…
Cotton exports which are a traditional export item for India have been declined in importance with a falling contribution to Indian exports as well as to the global cotton market. In general this sector has performed better since trade liberalization was undertaken in 1991. The reduction and subsequent removal of export and import barriers have further supported exports and contributes towards a stronger performance. The export of cotton is equally affected by the appreciation in dollar value, tariff and non tariff barriers. Being a labour intensive, cotton sector has experienced a fall in export growth in the year 2009. But after the fall india’s export value again raised up with the hike in the value. The government initiative is attempt to improve the efficiency and productivity of this sector, the Indian government reduced the reservation of textile products from 1997. The government has made provisions for incentives by reducing the excise duty and the basic custom duty on importing of raw materials. Implication and
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