Consecutively for fourth month in a row exports have shown a higher double- digit growth of 19.21 per cent, however the rate of growth during the month has shown an upward trend as compared to previous month with an increase of about 5 per cent. Though some of the MSME sectors of exports have come into positive territory including gems & jewellery, leather & leather products, cotton yarn/ fabrics/made-ups and handicrafts.
The exports of textile and clothing grew 18 per cent in August 2018 to stand at Rs. 21,895 cr as compared to Rs. 18,533 cr in August 2017. Similarly, the cumulative figures during April-August 2018 grew by 6 per cent at Rs. 1,01,727cr as compared to Rs. 95,888 cr during April-August 2017. The exports of cotton yarn fabrics, made-ups, handloom products in August 2018 grew by 39 per cent, to Rs. 7,456 cr as compared to Rs. 5,380 cr in August 2017.
Similarly, the exports of man-made yarn fabrics, made-ups grew 24 per cent to 3,196 cr in August 2018. The export of textile yarn fabric, made-ups for August 2018 grew by 32 per cent to Rs. 1,196 cr as compared to Rs. 907 cr and for the five month period of the current fiscal, the growth was 11 per cent, Rs. 5,347 cr as compared to Rs. 4,799 cr in the April-August 2017 period.
Overall, all commodities exports witnessed a stupendous growth of 30 per cent in August 2018 while for cumulative, it witnessed a growth of 22 per cent. The positive trend in exports for the entire textile value chain has been the result of timely policy support and intervention to boost the industry that was reeling under severe stress especially after the implementation of GST.
Some of the small and micro sectors of exports are still reeling under pressure because of the liquidity crunch as banks and financial institutions have continuously been tightening their lending norms and ITC refund for exports still poses a challenge.
At the same time industry is still concern on the rising trade deficit, primarily on account of swelling of crude imports bill due to rising global oil prices and higher gold import, which has further added pressure on the Indian rupee. Though the rupee depreciation has given some edge to the Indian exports as rupee is one of the worst performing currency in Asia in the current fiscal, yet its impact has varied from one sector to the other.