” . The rate of growth of Indian textile exports to the US is outpacing the Chinese growth. In March, Indian exports grew by 6.9% against China’s 1.9% on a y-o-y basis. India’s realisations, too, have grown by 9% on a y-o-y basis to $2.1 per unit. India’s export growth was largely driven by items on which safeguard limits were imposed for Chinese exports .A Morgan Stanley report states that India is likely to be one of the biggest beneficiaries of restrictions imposed on China. ”India gained 41 bps market share in total textile exports to the US and China lost 28 bps (y-o-y) during March due to the levy of quotas,” said the report .Domestic textile experts agree that safeguards on China has helped India’s textile exports but say the Indian textile sector has its own inherent strengths. “We have an edge over China where a higher degree of value addition is required. But China is still a giant in the volumes game,” said Confederation of Indian Textile Industry secretary general DK Nair. For the 12-month period ended March ’06, India’s textile exports to the US stood at $4.8bn against China’s $22bn-plus .Seven categories of textile and clothing items are the major drivers of India’s textile growth in March ’06. These include cotton shirts and blouses, trousers, shorts, slacks, underwear and man-made fibre knit shirts and blouses. Data shows that India’s gains in these segments are not because of the expanding US market but mainly due to the declining share of China and Pakistan .For instance, India reported a 67% growth in women’s cotton-knit shirts and blouses segment, while China’s growth in the same category declined by 52% and Pakistan’s by 12% in March. Similarly, there has been a steep 144% rise in Indian exports of silk and vegetable fibre-based trousers, breeches and shorts in March ’06. Pakistan’s exports in the same category came down by 61%, while China had to reconcile with a modest 12% growth .One area of concern for Indian textile exporters could be that there has been a slowdown in the rate of growth of the US textile import market in February-March ’06. This was largely due to decline in US retail sales. New Delhi is, however, bullish about future prospects. “Country’s total exports in ’05-06 has touched $17bn (Rs 76,500 crore), up from about $13bn (Rs 58,584 crore) in ’04-05. The target is to touch $40bn mark by ’10,” a textile ministry official said .Source: The Economic Times.
Date:5/31/2006
Source: