MUMBAI: India's textile exports are expected to bounce back this year following depreciation of the rupee and the appreciating Chinese currency, which will make Indian goods competitive, a top industry official said.
“The Indian textile export market is expected to remain good this year. Indian textile exporters are finding it easy to compete with China due to depreciation of the Rupee as compared to the US dollar and strengthening of the Chinese currency,” Alok Indu stries Managing Director, Mr Dilip Jiwarajka told visiting reporters at its Silvassa unit.
The rupee has depreciated by 20 per cent, while the Chinese Yuan has appreciated by 7-8 per cent vis-a-vis the dollar.
“Garment exporters buying fabrics from China are now turning to India. These exporters are finding it lucrative to buy from India due to price competitiveness,” Mr Jiwarajka said.
Global trade in textiles and clothing increased to $580-billion in 2008 from $480-billion in 2005. Global trade is expected to grow to $650-billion by 2010 at a CAGR of 5.8 per cent.
India's textile trade is estimated at $61-billion, of which $23-billion is exports and $38-billion domestic in 2008.
India exported $10-billion worth clothing, $2.30-billion of home textiles and $10.70 billion of other textile products in 2008.
Source : Business Line