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Chinese textile exports to India surged 597.26% in past five years

2006-1-10

China emerged as the leading source of India's textiles imports in last five years as its textile exports to India rose by 597.26% from US$78.71 million in 2000-01 to US$548.81 million in 2004-05, according to a study conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Post ATC Competitiveness & Protectionism.

The study highlights that out of India's total global textile imports which stood at US$597.74 million in 2000-01, Chinese share was US$78.71 million; however, it shot up to US$548.81 million in 2004-05 against India's total global textiles imports of US$1,502.50 million. This works out to be an increase of 597.26% in value terms.

In percentage terms, however, India's textile imports from China in the year 2000-01 was 13.17% against its total global textile imports which almost trippled to 36.53% in 2004-05 against India's total global textile imports, according to the study.

ASSOCHAM President Anil K. Agarwal said the surge of Chinese textile exports to India was due to their decreasing prices international in the period, which ushered cut-throat competition among all leading economies of textile products and China happened to survive it so well because of its higher production of textile products with lower prices.

The study also says that in the first nine months of the quota-free regime, India's textile exports dipped by 10.1% to US$4.7 billion, while exports of readymade garments fell by 1.8% to US$5 billion. Exports of textiles and readymade garments to the EU, accounting for 35.3% of India's textile exports, went up by a meager 3.7% to US$3.4 billion during January to September 2005. During January to June 2005, India's textiles and apparel exports to the USA increased by about 24.2%.

However, the study points out that the textile sector fared well in the first half of 2005-06 as the weighted production index went up by 10.3%, compared to a 6.5% rise in the corresponding period of the previous year. Investments in the Indian textile industry (excluding synthetic textiles) saw buoyant growth in the current fiscal till October 2005, scaled up by a hefty 109.3% to Rs14,186 crore, compared to Rs6,779 crore as of October 2004.

Textile.2456.com

 
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