Dull performance on textile export front since quota phaseout
02 Jan '06
2 min read
The Directorate General of Commercial Intelligence and Statistics (DGCIS) has reported a decline in overall textile exports by 24 percent in the current year compared to last year.
But the officials stated that the exports in reality have climbed up by 24 percent compared to US and EU countries. They said DGCIS figures show a loss in terms of value of exports. This year there was decline in global prices of textile products.
The Textiles Ministry headed by Union Textile Minister Shankersinh Vaghela has set an ambitious cumulative annual growth rate (CAGR) of over 20 percent to be achieved by the year 2010. This will be achieved through aggressive exports of textile from $50 billion to $13 billion.
After the quota system was phased out, China was able to increase its share in world textile market to a whopping 700 percent, as observed by the recently out Assocham report. This was because China was able to for see the market trend and increased its manufacturing capacities on time.
India failed to capitalize and faced a 46 percent loss in market share of world textiles as the industries are in the process of boosting capacity and are unable to fulfill the demands placed by international customers, reasoned analysts.
India's energy and capital costs are on a higher side. It has complex taxation and considering the inputs involved, the output is low rendering the textile sector a weak competitor in the international market, said Premal Udani, President, Clothing Manufacturers Association of India.
He sought speedy infrastructure and power sector reforms for the industry to compete effectively in the world market.
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