India:Textile exports to EU reach Euro 2.21bln in Jan-May 2005

 significant trend of Indian textiles exports on the rise to the European Markets has been registered as per the figure released in the EU import data.

Post textile quota phase growth has been impressive to the extent of surprising doubting Thomases of the industry who we skeptic at the rate the Indian exports have been growing.

EU import data released recently shows January and May exports rise 11 percent to Euro 2.21 billion up over last.

In the corresponding period, Indian textiles exports to US registered US $987.81 million, up from $788.48 million in 2004.

Rate of growth in textile exports to the US and the EU 9major world markets) was second only to that of China’s.

The forecast of textile exports for fiscal 2005-2006 is expected to reach $15 billion, up from $13.6 billion last year.

A more optimistic forecast from Export Import Bank of India in April this year, forecasts textile exports to touch $70 billion by 2014, up from $13.6 billion in 2004.

Government officials have stated that both China and Indian have advantage over other producing countries due to their ample resources, cheap labour, apart from raw material being indigenously manufactured.

As per World Trade Organization figures, India is set to increase its market share four-fold in the approximately $400 billion global market from current four percent to 15 percent in the post Multi Fibre Agreement (MFA) era.

Indian textile industry insiders are today talking of joining hands with their Chinese counterparts so as to gain big league entry at the global level which comes as no suprise just when a seven months back, they were fighting tooth and nail to gain access to quotas from other Least Developed Countries (LDC) countries for re-exports to the US and the EU markets.

Now with the revaluation of Chinese currency renminbi or Yuan, the Indian textile companies will be at a certain advantage over thier Chinese counterparts.