In a bid to curb the widening Current Account Deficit (CAD), recently inducted Union Minister of Textiles K S Rao said on Wednesday that the government had fixed the textiles export target of $50 billion for the financial year, 2013-14.
“CAD is affecting the nation s economy and textiles sector is one sector where we can increase the exports substantially. I am given to understand that our textiles exports is about $34 billion today, which I wish to make at least $50 billion by end of the current fiscal. This will help in containing CAD,” the 69-year-old MP from Andhra Pradesh, said after assuming charge as the new textiles minister.
The huge trade deficit has been one of the biggest problems plaguing the Indian economy. CAD touched a record high of 6.7 per cent of GDP in the December 2012 quarter and expected to be around 5 per cent in 2012-13.
Due to poor demand in the US and European markets which consumes almost 65 per cent of India’s textile supply, exporters are trying to tap emerging economies such as Africa, Japan and Latin America.
Rao urged for better skill development in order to boost the sector’s growth.
“When people are skilled, the production will go up, cost of production will come down, the sector will grow which in turn will help it to compete in the international market,” Rao said.
He added that he would discuss with textile players the reasons that are negatively impacting the sector’s growth.
The textiles industry employs about 4.5 crore people.