India:Textile exports posts jump of 24.18% in Jan-June 2005

The textile exports to the US rose 24.18 percent in January-June 2005 to 1169.28 million square metres against 941.53 million square metres recorded in the same period last year, according to the recent data released by the Office of Textiles Export of America (OTEXA).

The largest contributor to textile exports, apparel grew 32.31 percent at 413.75 million square metres against 312.70 million square metres comparing the same period of last year. Overall, Indian textile exports growth rate is higher than the world average growth rate of 9.13 percent.

The growth in the initial six months of 2005 was witnessed much higher than the last year. Last year, textile exports to the US increased by 14.94 percent at 1914.78 million square metres from 1665.79 million square metres comparing to its previous year.

The President of Confederation of Indian Apparel Exporters, the apex body for readymade garment exporters, Amit Goyal informed that even though there was pressure to maintain low margins in the post quota era, industry players raised their unit value realisation in the US market by introducing value-added products.

The margins reduced on account of tough competition from other countries, mainly from China. Apparel exporters have been enforced to lower their margin by a 5-10 percent, comparing 15-20 percent margin last year, while fabric markers now miss half of their previous margins of 5-7 per cent.

Exporters are optimistic that the registered growth of 24 percent will be sustained during the rest of current year.