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Sad side of India's export story - losing out to neighbours
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Bikky Khosla | 15 Dec, 2009
We are losing our market share to our neighbouring nations; that is the first and foremost thing that struck me when I saw the dwindling apparel exports figures the other day.
Uncompetitive pricing of fabrics in the domestic market and rising cotton prices are making domestic garments costlier and with reduced demand and consumers looking for low-cost alternatives, buyers have given India the cold shoulder and are opting for nations like China, Vietnam, Indonesia and Cambodia for the sole reason that they are selling garments at lower rates compared to us.
Interestingly, it's not that there is a dearth of demand from India's traditional markets. Exporters are aware that demand from the US and European Union is reviving. The question, however, is: If there is demand in the markets why are we then not getting enough orders? The answer is simple - our competitors are perhaps enjoying more incentives than what our government has given us and that they are into large scale production.
I completely agree with Apparel Exports Promotion Council (AEPC) Rakesh Vaid when he said that 'the Duty Drawback rates, which seek to neutralise the incidence of customs duty, central excise duty and service tax on items for export, given to Chinese apparel exporters have been revised five times in the past few months from 11 percent to 17 percent on value of Freight on Board, while the Indian exporters get only 8.8 percent rebate.'
I think this is perhaps the sad side of India's story. While the government on one hand is setting targets for the Industry, on the other hand the tax regime is by no means helping it. I strongly believe that if this trend persists, the export target set by our Textiles Minister Dayanidhi Maran of $25 billion worth garments by 2012, will only remain a distant dream.
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Sad side of Indian expot styory
Ravi Kumar Ajitsariya,Guwahati | Sat Dec 19 04:48:45 2009
Its not a new story, we are far lagging benind china, there is no doubt in it. How can we be comprtitive, when we donot have co-ordination between our depatments,between our enterprenuers and of course between our people who are connected with export trade. We have to take a wholestic approach about the work. Its in fragmentation and divided house seldiom brings results.
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Re: Sad side of Indian expot styory
D T Sampat | Thu Jan 7 07:06:29 2010
i am an importer in one of the middle east countries. my area of work is concerned more on 100% cotton apparells with a huge potential here due to climatic conditions. We have been facing acute problems of unstable prices for about 3 years now. our manufacturers demand high prices where as another manufacturer with a different brand still is able to manage the situation on stable prices. this has resulted now in our turn of preference to lookout for an alternative supplier from different country. This is the story with most of the importers here. Government sitting there should understand the value of our hard work put to build up the brand as such. what we see is that they have been playing with the prices as well as open up for supply of abundant cotton to China our main rival. now results are out and we are facing the music, which inturn is affecting Indian exports in this segment by and large. this has killed many manufacturing units in india and still more problems are yet to come for them.
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There is also lucrative business beyond US &/or EU markets which Indian firms are perhaps more focused to...
T. Sisay | Thu Dec 17 19:10:08 2009
It's not that late to recognise now that Indian Firms are losing out to firms in the neighboring countries which, by and large, i think work with and also create demands for their products in the developing and also even in the poor nations beyond the first world. It is apparent that the rest of the world happens just to observe how they, particularily Chinese firms, are proliferating and reaching every corner of the world with their products. Indeed, quite a good number of these firms violated some basic standards, or breached 'order qulifier' as they do businesses with the poor, and which is unacceptable by any standard. And yet,in any way,they do have the will and whim to trade with these poor nations and make money & profits. So I think Indian Firms need to learn from them and genuinely look beyond the EU/US markets to meet the 25 billion worth plan by 2012!
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Re: There is also lucrative business beyond US &/or EU markets which Indian firms are perhaps more focused to...
Ajay Advani | Thu Dec 31 05:30:48 2009
I Definitely agree, "There is also lucrative business beyond US &/or EU". I am an Indian and am a CEO of a company into manufacturing of Alcoholic Beverages. Since my company is a start up Company, I have had the opportunity to do an extensive market research including the Garment business. I see that Myanmar has a very big market for medium quality clothing and Thailand is ruling. Now we all know that Thailand is no way competitive in pricing terms, but the reason they are winning is because they have a presence here. On the other hand the Indian Garment Exporters are simply concentrating on US/EU markets where the margins are getting wafer thin, the standards are getting tougher and the competition increasing by the hour. Its time for India to LOOK EAST whether it is Garment business or Machinery or IT. The bottomline of a business is PROFIT and not the QUALITY OF THE CLIENT.
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loosing out to neighbours
alson | Thu Dec 17 05:09:55 2009
Dear sir,
We would like to emphasis that other country are using the policy of export rarely in different fashion i.e. they are given subsidy for the overseas ventures by the government in terms of freight interms of pricing if the exporting client is thier own citizen it works better way india should start the policy that if goods exported to other country is indian citizen origin who sets up the business in that country should get certain government rebate to boost the export sales.This is we have observed in dubai the trading export house of china which is know as dragon mart.
Finding the real problems
Hassan Mokhtari Golpayegani | Wed Dec 16 13:00:44 2009
Dear Friend
Hello
One of the most nearest markets to India is Iran which is very wide and active in importing goods from south east asian countries.
The most reasons which I believed caused in transaction narrowing can be mentioned as follows:
1-Payment problems from Iran , since Iran is under political restricions .
2-Uncostomized goods according ro Iran market needs and interest.
3-Not competitive price comparing chinese, tai products.
I am managing director of a general trading company in Iran , also international business manager in one other company.
I am now in touch with Indian supplier and realy engaged with mentioned problems.
How ever I believe all of this problems have solution as I am working to boost our business with India and am ready to offer about solutions
Best regards
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Re: Finding the real problems
Manzoor Shaikh | Thu Dec 24 19:15:15 2009
Dear Mr. Hassan Mokhtari Golpayegani, Salam! I am a Merchant Exporter from Mumbai, India. We are dealing with Multiple products, right from Garments, Leather Products, Food Grains, Frozen Meat, Chemicals etc. We are catering to the Middle East, UK, and the Europe market. I appreciate your concern and feedback for Indian Exporters and our Products. We are keen to do business with the Iranian Market but couldn't find at relaible buyer. We would be obliged if given a chance to serve your esteemed country. My email id is manzoor@mr-intl.com and cell # 91 9702498223 / 9370162665
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Re: Finding the real problems
Promod | Sun Jan 10 07:09:34 2010
Dear Mr. Hassan Mokhtari,
Read you message and well noted.
We manufacture decorative products and ladies footwear. We wd be more than glad to work as a joint venture. my contact details
Promod (cell#. 91-9899 222 561)
rambhaexports@bol.net.in
rambhaexports@gmail.com
tel. 0091-11-22075900, 22072020
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How to acheive competitive advantage
Sreejith | Wed Dec 16 06:25:01 2009
If Indian exporters are loosing their competitive edge over low quality products from the above mentioned countries, is solely because of their lack of professionalism and promptness and not at all because of less governmental supports.We have to raise up to the standard of International standards in design, advertisements,business strategy and more importantly sustaining relationship and accuracy in delivery.I am writing this from Taiwan and I can understand very clearly why Indian apparel exporters are loosing, if, so.As a matter of fact, most of the exporters are reluctant even to give a proper reply for an import order placed.Change your attitude towards international business my colleague Indians, otherwise you are going to loose even with small players from Cambodia, Indonesia or Vietnam
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Re: How to acheive competitive advantage
A. Basheer Khan | Wed Dec 16 08:45:25 2009
We must grow our production in a time shedule . Because the neighbours are doing hard work to do more production a limited time frame .
As we are means our man power is not bond to do production a set time.
When u do a thing in 8 hours and same work u do in 16 hours the cost goes 30% more than the actual cost.
So we must check our time shedule
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Re: How to acheive competitive advantage
kaushik kaneria | Thu Dec 17 05:38:30 2009
W manufacture a stainless steel kitchen basket
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Losing out to neighbours
ashwin | Wed Dec 16 04:41:06 2009
Please get rid of the dark ages tax system of Octroi from Maharashtra as it slows down all our items from outside Maharashtra be it for export or domestic use.
The Trading Community has taken this up umpteen times with the Authorities and what has happened? Nothing so far. This System is a big obstacle to all trade related services, and we all know how corrupt it is. Any new policies implementation is still very slow in this fast paced world and if we really want to catch up with the other countries and compete, we need to take corrective measures faster than what we are doing right now ! Tortoise pace will not do.
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Re: Losing out to neighbours
A. Basheer Khan | Wed Dec 16 08:48:03 2009
past few months from 11 percent to 17 percent on value of Freight on Board, while the Indian exporters get only 8.8 percent rebate.'
The 8.8 % must be checked by the govt. but the fact is that we are loosing most out time in talking and politics . The business men shall do their best to achive the production in set bond time to reduse the cost.
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