India Ranks Second In Global Textile Exports

Market News

India Ranks Second In Global Textile Exports

India has improved its ranking as per the recent data released by 'UN Comtrade' in global textiles as well as apparel exports. In global textile exports, India now stands at second position beating its competitors like Italy, Germany and Bangladesh, with China still retaining its top position.

Virender Uppal, Chairman, AEPC, expressed his happiness over this impressive growth and stated that, "Despite having slow recovery in USA and EU, our biggest traditional markets as well as prevailing global slowdown coupled with sustained cost of inflationary inputs, we made the best possible efforts to reach here. The government policy of diversification of market and product base has helped us and we ventured into newer markets, which paid huge dividends.

We also leveraged our raw material strengths and followed sustained better compliance practices which attracted the buyers and international brands across the globe to source from India."

India's share in global textiles has increased by 17.5% in the year 2013 compared to the previous year. Currently India's textile exports are to the tune of US$ 40.2 billion. This growth is phenomenal as the global textiles growth rate is only 4.7% compared to India as it has registered the growth of 23% beating China and Bangladesh which registered growth of 11.4% and 15.4%, respectively. Total global textile exports are to the tune of US$ 772 billion with India commanding 5.2% of the share. This growth in the increase in share of textiles exports from India is largely attributed to the growth in apparel and clothing sector exports, as it accounts for almost 43% of the share alone.

Apparel exports ranking has also improved from 8th position in 2012 to 6th position in 2013. India's apparel exports were to the tune of US$ 15.7 billion in 2013, as against US$ 12.9 billion in 2012. Among the top five global clothing suppliers except for Vietnam, India's apparel exports growth was highest registering 21.8% growth during the year 2013. Apparel exports from India accounts for 3.7% of share in the global readymade garment exports. Uppal, while lauding the efforts of apparel exporters, conveyed his concerns. "The availability of specialty fabric is a big bottleneck for which AEPC has been aggressively demanding 5% duty scrip for imports of fabrics.

“It must be considered favourably by the new government to boost India's apparel exports. Garment exporters may be permitted to import it with 5% duty scrip on the input, so as to increase exports and optimally use to the fullest extent our potential.

“The rising interest rate is another issue which hampers growth for which AEPC once again has put in its request to the government for a separate chapter for pre- and post-shipment export credit at fixed rate of 7% interest, as was done.

“As the government is contemplating new Union Budget and Foreign Trade policy, I earnestly request government to concede these two demands of RMG sector of utmost priority," Uppal stated.