The exports of garments, made using man-made fibre (MMF), from India are expected to move up in 2021 with government support and efforts of industry experts. It is expected to surge to $430.66 mn in June 2021 with a CAGR of 8.00 per cent from the $271.39 mn in December 2020, according to market analysis tool TexPro.
Likewise, the average monthly exports of MMF garments from India are expected to grow to $358.36 mn in the first half of 2021 with a rise of 39.88 percent from the monthly average of 2020.
The MMF garments exports of India have been recovering with considerable growth rates after the ease in impact of Covid-19. The Government of India (GoI) has been working on the strategies to boost the exports of the country which can sustain the country’s economy in this difficult time of pandemic. The GoI and industry stakeholders have targeted to achieve approximately 10.00 per cent market share in the global market of MMF garments.
The MMF garments exports of the country significantly dropped in 2020 with the impacts of the COVID-19 pandemic and slower pace of global economy. The monthly average MMF garments export of India has declined to $256.18 mn in 2020. The sudden plunge has been observed in April 2020 to $32.22 mn from the $277.16 mn in March 2020 with a significant fall of 88.38 per cent. With the combined effort of GoI and the industry personnel, an export level has been achieved in July 2020 with value of $258.40 mn, a seven-folded growth in just three months. It has shown the consistent rise till December 2020 except for the fluctuation between September 2020 and November 2020.
In February 2021, GoI has planned to extend the benefit of the Scheme for RoDTEP (Remission of Duties and Taxes on Exported Products) to all export goods. It has taken effect retrospectively from January 1, 2021.
The GoI has also given approval to Production-Linked Incentive (PLI) scheme which is applicable to the segments such as MMF and technical textiles and has allotted ₹10,683.00 crore over the period of five years. Under PLI scheme, seven mega textiles parks would be created in the country which can increase the MMF garment production and export. The Indian textiles ministry has focused on 40 HS lines of MMF garments under the PLI.
According to the garment exporters, the major constraints in the exports of the MMF garments are long lead times and availability of quality MMF fabrics. After the prolonged meetings and discussions, the fabric producers have assured the supply of quality fabrics as they claimed that they are ready with adequate and quality machinery and technology of international standards.
The PLI scheme would help raw material producers to compete with the producers from neighbouring countries with lesser tariff barriers. GoI has focused on infrastructure highways, railways and ports, which will improve logistics and will cut the cost of doing business.
The reduction of custom duty on nylon also can revamp the MMF garments exports. According to industry experts, the anti-dumping duty on MMF raw materials must be removed. The prominent budget provision has been made for MSME (Micro, Small and Medium Enterprises) sector with Rs.15,700.00 cr in the coming fiscal. GoI has allocated a budget of Rs.1,624.00 cr to the shipping lines to boost the trade. The subsidy support will be given to Indian shipping companies in global tenders floated by various ministries and CPSEs (Central Public Sector Enterprises) which will bring down the shipping costs.
