Textile exports decline in Q1FY07 due to rupee gain

New Delhi, July 24 (UNI) The appreciation of rupee has taken a heavy toll on the small and medium exporters in the Indian textile sector witnessing a decline of 41 per cent in exports in the first quarter of 2007-08.

''The competitiveness of the industry had suffered in recent months on account of the steep appreciation of the rupee,'' said Textiles Minister Shankersinh Vaghela while briefing mediapersons on the two-day TEX-SUMMIT to be held in next month-end here.

The Minister pointed out that the export target for the first quarter was fixed at 7.2 billion dollars whereas it could touch only 4.2 billion dollars mark mainly due to the recent appreciation of rupee.

The export target for the whole year 2007-08, fixed at 25.2 billion dollars, seems difficult to be achieved under these circumstances. The new duty drawback rates from three to five per cent announced by the Government are not in tune with the rupee appreciation.

The industry is upset with the new duty drawback rates which they said do not compensate the loss suffered due to the rupee appreciation by 15 per cent.

TEX SUMMIT to be organised by the Textiles Ministry on August 31 -September 1, 2007, will deliberate on issues of productivity, exports and employment generation.

The sector has become a 'sunrise industry' from being a 'sun set industry' during the recent past, he added.

Mr Vaghela also stated that the Technology Upgradation Fund Scheme was being extended with the higher allocation, the details of which are being finalised and will be announced shortly.

The Minister also launched a Website on the Tex Summit, www.texsummit.in which gives details of the conference.

UNI