European Union’s gain is the US’s loss when it comes to readymade garments exports from India during the first half of 2003-04. While exports to the US have declined for the first time, it is more so because of the stiff competition from China, Nepal, Bangla Desh and Pakistan.

According to available figures, India’s readymade garments exports to the EU have climbed smartly by almost 24.59 per cent in value terms even when exports to the US were down by 10.75 per cent.

However, overall exports of readymade garments to restricted countries during the first half (April to September) of the year 2003-2004 have amounted to 536.5 million pieces valued at $2,160.1 million (Rs 10,032.76 crore). This represents a marginal increase of 4.65 per cent in terms of value, when compared to the same period of the previous year 2002-03, which was at Rs 9,586.96 crore. Industry source said the declining export trend to the US was feared to continue for next couple of months.

According to Amit Goyal, president, Confederation of Indian Apparel Exporters (CIAE), a declining trend in export has been shown for first time in last two years after the terrorist attack on WTC. The situation is alarming and is reason for worry too. “This is primarily due to the cut-throat competition in the US-EU market from Chinese, Nepal, Bangladesh, Pakistan, Sri Lanka and some African countries,” he said.

Mr Goyal said except for T-shirts, men’s shirts and few ladies items are showing an uptrend in export, but marginal. All other Indian categories like pants and other items, mostly in demand, have shrunk in size due to non-competitive in price.

Even leading US/UK importers are switching over to other countries specially to non-qouta countires like Nepal. For example, leading US-based garments importer ‘GAP’ has lowered its imports from India and is seen to be concentrating on countries like Nepal and China due to cost competitiveness.