Cotton textile exports passes quota test with flying colours
18 Sep '06
2 min read
Giving rest to speculations about adverse effects after quota implementation, textile exports surpassed target for year 2005-06. Exports registered noticeable growth at 28.5 percent in dollar terms compared to previous year reaching US $4.87 billion and in the process overtaking the $4.2 billion target set by Textile Ministry.
Chairman of Texprocil, B K Patodia informed reporters that looking at the export figures, fear of Indian textile industry loosing after the quota abolition has totally vanished.
Each segment of cotton textile registered good performance with home textile and cotton yarn growing by 39 and 27 percent, respectively. Even the export of cotton fabrics which was lethargic early on has gone up by nine percent.
Cotton yarn enjoys 30 percent share in total exports and during 2005-06 and it reached exceptional growth of 33.42 percent in quantity terms with the exports to the tune of 546 million kg.
Cotton Yarn exports to US shot up four times from Rs21.65 crore to Rs109.12 crore. Exports to China rose by 65 percent even as Korea, Bangladesh and Italy are still bigger export destinations for cotton yarn.
Patodia emphasized that actual challenge was to carry on the export growth over a long period and then attain higher value per unit of exports. He sounded confident that the target of achieving $50 billion worth in exports by 2010 will become reality.
CRISIL Infrastructure Advisory (CIA) had earlier projected that Indian exports will reach about $40 billion by 2011. Quota free trade in the last one year has seen India becoming the third biggest exporter of textile and clothing to the US.
In the EU-25 market, behind Turkey, India has been able to hold on to its third position.CRISIL had said that to get a globally competitive cost structure for operations, factors like multi-fibre base, value chain integration and low labour cost are important.
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