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India is now second largest textile exporter: UN Comtrade

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India has improved its ranking as per the recent data released by ‘UN Comtrade’ in Global Textiles as well as Apparel Exports. In Global Textiles Exports, India now stands at second position beating its competitors like Italy, Germany and Bangladesh, with China still retaining its top position.

Mr. Virender Uppal, Chairman AEPC, expressed his happiness over this impressive growth and stated that, “Despite having slow recovery in USA and EU, our biggest traditional markets as well as prevailing global slowdown coupled with sustained cost of inflationary inputs, we made the best possible efforts to reach here.

"Government policy of diversification of market and product base has helped us and we ventured into the newer markets, which paid huge dividends. We also leveraged our raw material strengths and followed sustained better compliance practices which attracted the buyers and international brands across globe to source from India.

"India’s share in Global Textiles has increased by 17.5% in the year 2013 compared to the previous year. Currently India’s Textiles Exports to the world is 40.2 US $ billion. This growth is phenomenal as the global Textiles growth rate is only 4.7% compared to India as it has registered the growth of 23% beating China and Bangladesh which has registered 11.4% and 15.4%, respectively.

"Total Global Textiles Exports is to the tune of 772 US $ billion with India commanding 5.2% of the share. This growth in the increase in share of the Textiles Exports from India is largely attributed to the growth in the Apparel and Clothing sector as it accounts for the almost 43% of the share alone. The Apparel Exports ranking has also improved from 8th position in 2012 to 6th position in 2013.

"India’s Apparel Exports, was to the tune of 15.7 billion US $ in 2013, as against 12.9 billion US $ in 2012. Among the top five global clothing suppliers except for the Vietnam; India’s Apparel Exports growth was highest registering 21.8% growth during the year 2013. Apparel Exports from India accounts for 3.7% of share in the Global Redymade Garment Exports."

Mr. Virender Uppal, Chairman AEPC while lauding the efforts of the Apparel Exporters, conveyed his concerns also that while Industry is actually itching to do more, stressed that, “The availability of speciality fabric is a big bottleneck for which AEPC has been aggressively demanding 5% duty scrip for the imports of fabrics. It must be considered favourably by the new Government to boost India’s Apparel Exports. Garment Exporters may be permitted to import it with 5% duty scrip on the input, so as to increase exports and optimally use to the fullest extent our potential.

 "The rising interest rate is another issue which hampers growth for which AEPC once again has put in its request to the Government for a Separate chapter for pre and post shipment export credit at fixed rate of 7.0% interest, as was done in the past also to the apparel export sector and treat Readymade Garment as the priority sector lending.  As the Government is contemplating new Union Budget and Foreign Trade policy, I earnestly request Government to concede these two demands of RMG sector utmost priority.

 "Increasing labour cost in China, non-compliance of large number of factories in Bangladesh  provide India a big opportunity in view of its relative advantage, risk appetite of Indian entrepreneurs and a small push from the Government may help India to get more business as overseas buyers are looking at India as safe and reliable option for the sourcing.

   "But to capture the space in market left by China and Bangladesh, we have to be competitive in pricing, apart from meeting strict timelines, better quality delivery by Indian exporters and therefore, Government agencies active support is very crucial. AEPC is pushing in this direction to seek export friendly enabling environment from the Government", Mr. Uppal added.

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