Bangalore, June 1 Competition from Bangladesh, China and Vietnam is threatening the Indian textile industry and the country could find itself lagging in exports if it does not react suitably, say experts in the textiles sector.
Addressing a press conference to announce the sixth annual Fabrics and Accessories Trade Show in Bangalore From June 5 to 7, Mr Atul Ujagar, Country Director, Nike India, Sri Lanka and Pakistan, said textiles and clothing exports for 2007-08 were worth $22 billion. Readymade garments’ exports were around $9.5 billion. Compare this with China, whose apparel exports alone were $120 billion. For 2007-08 (July-June), Bangladesh’s readymade exports were $10.7 billion. Even Vietnam is catching up with apparel exports worth $9.05 billion. It is projected to reach $11.5 billion this year.
Indian textile and clothing exports during April-December were $15.27 billion against $15.25 billion in the previous period — a mere 0.12 per cent increase.
Losing US market
The US’ imports of textile and clothing in calendar 2008 declined of 3.34 per cent from around the world. Imports from India dipped 0.55 per cent. But even in these tough times, Bangladesh, China and Vietnam managed some growth in the US markets, said Mr Ujagar, adding that India must work on aspects such as improving efficiencies, increasing scale of operations, labour reforms and tax structures.
The impediments to the country’s growth, according to Mr Sukesh Kumar, Managing Director, South-East Asia, Kufner Textiles India, were lack of infrastructure, Government red tape and lack of adequate awareness about concepts such as Special Economic Zones.
Mr Dilip Gianchandani, Regional Director, Intertek Testing Services, said the slowdown offers opportunities to restructure and re-strategise. While one needs to focus on the domestic market, as the US market is down, at the same time one cannot completely ignore exports as they bring in the volumes.
Source : Business Line