Both India and China witnessed shrink in exports to US market for textile and garments compared to sharp increase in exports of 2005.
Although China is victim of import restriction on certain goods by US under a special WTO dispensation, India is mainly affected by competition from countries like Bangladesh, Vietnam, Pakistan and Indonesia.
Chinese apparel exports to the US recorded extraordinary growth in 2005 but pace of growth reduced considerably in 2006 by registering merely growth of 7.58 percent during January-September, 2006 compared to same period of previous year.
Similar is the pattern of growth of Indian garment exports to US, registering slow growth of 10.75 percent during January-September, 2006.
While Bangladesh recorded 24.7 percent, Cambodia grew 26.28 percent, Vietnam grew 23.8 percent and Indonesia recorded growth of 27.85 percent for the period of January-September, 2006.
China is facing quota restrictions in several categories while India managed to penetrate market.
marketing@alchempro.com
