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Related Keywords: American dollar, cotton exports, Global textile market, Indian cotton, Indian textile exports, rupee depreciation, yuan devaluation

The rupee fell by 36 paise (0.5 per cent) to close at a two-year low of 66.82 against the American dollar on Monday on firm dollar demand from banks and importers and volatile domestic equities. The Indian currency has depreciated about 7 percent since April.

The depreciation of the rupee would have ambiguous impact on Indian textile industry. Fall in rupee will possibly benefit the Indian textile exporters as China could further devalue its currency to increase competition.

Related Keywords: among TPP member countries, apparel and denim sector, barriers to goods and services, economic growth and development, enchance trade and investment, hit by TTP agreement, India plans setting up capacities in Vietnam, Indian textile exports, promote innovation, provide comprehensive market access

Indian textile exports, especially apparels and denim, may be hit with the signing of largest free trade agreements, the Trans Pacific Partnership (TPP) agreement which the United States is in advanced stage of signing with 11 countires, including Japan, Australia, Vietnam, Singapore and Cananda to enhance trade and investment among the TPP-member countries, promote innovation, economic growth and development, and support the creation and retention of jobs, apart from providing comprehensive market access by eliminating tariffs and other barriers to goods and services.

Related Keywords: bring out strategy paper, Commerce Ministry, competitiveness on downward trend, cotton exports, incentive for textile sector, Indian textile exports, National Textiles Policy, process of rolling out, Textile Ministry, to enhance textile export

India’s textiles exports competitiveness is on downward trend even countries like Sri Lanka and Turkey are more competitive in the sector. The Commerce Ministry is considering bringing out its own strategy paper for the sector to enhance competitiveness of textile exports.

Textiles Ministry, too, is in the process of rolling out a National Textiles Policy, which aims to achieve USD 300 billion exports by 2024-25 and envisages creation of additional 35 million jobs.