Indian textile exports will remain flat during next two quarters (Indian)

Textile exports growth may not be positive during the next two quarters on account of the downturn in the major key export markets, said Textile Secretary Kiran Dhingra on Thursday.

"It is expected that the next five months or the next two quarters may not be that positive but growth would pick up thereafter," Dhingra said on the sidelines of a CII event in New Delhi.

When asked whether the country can achieve the textile export target set up recently at USD 40.5 billion, she added, "We have set a target of USD 38 billion before the announcement of the Annual Supplement of the Foreign Trade Policy (FTP). After that the steps that were associated with it, the target was changed by them (Ministry of Commerce) with their concurrence and with their acceptance."

"And on the basis of the new target they have given us what they expect as the quarterly targets. It is not that we have done it unilaterally. Therefore, what we see is that they do not think that the current two months downturn is a long term trend. And, it has not depressed them thinking that nothing will happen," the textile secretary added.

Further opining on the Eurozone debt crisis she said, "I think it is an opportunity to widen the markets for our exports because the concentration has been on the US and Europe."

At the moment, the textile industry is also looking for alternative markets both in the east and the west. At the end of it, if Europe rises up again Indian textile industry will end up having much wider markets than it has now, she also said.

Dhingra added that there has been decline in placement of orders after December last year, which is translating into lower exports of readymade garments (RMG) presently. But it is expected to change because the Europe's market condition is changing currently.