Apparel and textile exports from the country have hit the danger zone, as growing markets like Vietnam, Bangladesh and Indonesia are posing tough competition and sewing success stories.
MUMBAI: Apparel and textile exports from the country have hit the danger zone, as growing markets like Vietnam, Bangladesh and Indonesia are posing tough competition and sewing success stories.
Textile imports from India went down by 3% in January in value terms and 5.1% in February 2007. The Apparel Export Promotion Council, the apex body of apparel exporters, has scaled down its export target from $12 billion to $10.5 billion.
During last fiscal, Indian apparel exports stood at $9.3 billion, with a 11.5% growth, and there was distant possibility that country would achieve the desired growth of 30% in the current financial year.
But, in fact, compared to rivals like China, Indonesia and Bangladesh, Indian exports to the US market for the whole of 2006 was a flop show. While exports for the calendar year 2006 from China, Bangladesh and Indonesia grew by 27%, 20% and 26% respectively, India’s growth was a mere 5%.
It was learnt that export council is exploring newer markets like Russia and Japan to widen the reach of Indian exports.
Despite the quota restrictions, China exports apparel worth $47 billion with a growth rate of 17%.
Analysts said larger chunk of Indian businesses might shift to China, when the quotas are lifted in 2008. Currently about 75% of the Indian apparel exports is limited to a few countries like the US, Canada, the European Union and West Asia, while China exports to more than 40 countries.
India seems well placed in the global textile and clothing trade in next few years, but to get anywhere close to China in export volumes, the country will require a major relaxation in labour laws.
Labour constraints prevent apparel exporters from exploiting the full potential of the country’s abundant labour supply. Before quotas were removed at end-2004, a number of medium and large Indian exporters of textiles and apparel began implementing strategies to take advantage of the expected sharp increase in the size of export markets for their products.
These companies’ strategies were aimed mainly at enhancing production capacities and sharpening international competitiveness through modernisation and technology upgrades.
At the same time, a number of exporters were apprehensive about the increased intensity of competition following removal of quotas.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}