Chinese embargo may push up Indian textile exports
Source: CCPIT TEX Date: 2006-03-20
The embargo on exports of Chinese textile products to the US and the EU until ’08 could substantially push up Indian exports to these two destinations, Union textile minister Shankarsinh Vaghela said here on Sunday at a seminar. This may help India achieve the ambitious target of exporting $50bn worth of textile products by ’10. The minister said that India could witness high growth potential if the opportunity due to Chinese embargo could be combined with the fashion and design expertise in India and reduce losses created as a result of late deliveries.
“The embargo on the Chinese textile industry should have a direct positive impact on Indian textile industry which is the second fastest growing textile industry in the world,” Mr Vaghela said. Already the positive ramifications of the embargo have started showing with exports to the US jumping over 44% in January this year to $560m as compared to the same period last year. In contrast, the growth of Chinese exports slowed down to 11% in January ’06 compared to over 70%, growth in the US and 33% in the EU in ’05.
India’s per unit realisation too grew over 11.4% in the last one year to touch $4.19/sq meter up from $3.77/sq meter. “This means that Indian textile exports is that of higher quality confirming that India is going up the value chain,” JN Singh, textile commissioner said.
