India : Apparel Exports Surges In First Quarter

The apparel trade with United States and overseas orders coming to India due to SARS helped to surge the apparel exports in first quarter and is looking to surge further in near future.

India's apparel exports to so-called quota countries were up 19% in volume terms (number of pieces) in April, even rising more than 24% in value terms at US$376 million.

Shipments to the European Union were higher than experienced in the first quarter with a 26% increase in volume terms and a growth of 40% in value terms at US$190 million.

Exports to the United States slowed down, nevertheless, rising 10.64% and 10.46% in volume and value terms, respectively.

In the first four months of the year, exports to the US were up 23% in volume terms while shipments to the EU increased by 17%.

Exports to Canada were up a mere 4.17% in volume terms in April with a 5.74% growth in the January-April period.

In addition to the surge in shipments observed in the first four months of the year, Indian exporters could benefit from the negative impact of SARS outbreak on US and EU imports from China and Hong Kong.

India is expected becoming the most important challenger of China in the post-quota era, starting on 1 January 2005.