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India:Textile exports grow 40.8% in Nov-Dec
Author:
admin
PublishDate:
2006-03-14 15:54:00
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292

The domestic textile sector has finally started firing in the post-quota era. For the first time in the post-quota era, the domestic textile exports to the US have grown faster than Chinese textile exports.

In the November-December 2005 period, Indian textile exports to the US increased 40.8% over the same period last year while, at the same time, Chinese textile exports grew 27.6% in the November-December 2005 period.

However, that India textile exports to the US still lag way behind China’s in absolute terms, and Chinese textile exports to the US have grown faster in the 2005 period than India’s textile exports.

In the November-December 2005 period alone, Indian textile exports to the US earned an impressive $731 million, up from $519 million earned in the November-December 2005 period.

At a disaggregated level Indian textile exports to the US grew by 45.6% in the month of Nov’05, and 36% in the month of Dec’05. Yarn exports have been the fastest growing textile import item in the Nov-Dec ‘05 period it increased by 400%, over a low base.

Interestingly enough, Indian textile exports seem to even be growing at the aggregate or all country level, data from the Indian ministry of commerce & industry has shown Indian textile exports to the world has increased by 6.7% in the April-October05 period.

Similarly, Chinese textile exports to the US grew by 24.4% in Nov’05 and 31% in Dec’05. However in the entire 2005 period Chinese textile exports to the US grew by 53%, while India recorded a 27% increase in’05.

On an international comparison, South Korea appeared to be one of the biggest losers in the Nov-Dec’05 period recording a negative 22.6% decrease.

Other major losers include Mexico, and Canada, in fact Mexico continued to lose their textiles market share in the US, with India and China the biggest gainers. India’s neighbours Pakistan and Bangladesh continue to be steady gainers in the post quota period.

The improvement in textile exports can also be reflected in the index of industrial production, where most of the textile sectors have seen good increases.

For instance, the textile products sector recorded a 18.6% increase in the April-Dec06 period, while the cotton textiles sector recorded a 10.2% increase, the wool silk in the April-Dec06 period, and man-fibre textiles recorded a 7.1% increase in the Dec06 period, and finally the jute & other vegetable fibre textiles recorded a 2.7% increase, in the April-Dec06 period.

The index of industrial production captures the overall production taking place in the economy, in fact overall production levels cater to both internal demand and external demand.

Global demand is reflected by exports or in this case textile exports, an increase in textile exports would have put an upward pressure the demand for textile products, resulting in an increase in production in the textile sector.
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