Textile Exporters Facing Tougher Competition in US, Tough competition For Indian Textile Exporters in US, Indian Exporters in US Market, Textile Industry Competition in US Market

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SME Times News Bureau | 05 Jul, 2010
Indian textile exporters are facing stiffer competition in the US market from countries like China, Indonesia, Vietnam and Bangladesh, findings of a new report by the Federation of Indian Chambers of Commerce and Industry (FICCI) indicate.

"In addition to China, countries like Indonesia, Vietnam and Bangladesh have managed to perform better, despite recession, than India in US market in 2009," the study said.

While Indian textiles and apparel exports to US and EU slowed down at almost same rate in 2009, but competition seems to be harder for Indian textile exporters in US market as compared to EU market, the study added.

According to the survey findings, India's exports of textiles and apparel witnessed a negative growth of around 11 percent to both US & EU in 2009, but still managed to increase its share by 0.17 percent in both the markets.

India's exports of textiles and apparel, despite witnessing a negative growth of around 11 percent to both US & EU in 2009, managed to increase its share by 0.17 percent in both the markets but exports of textiles from countries like Indonesia, Vietnam and Bangladesh witnessed smaller decline than India, it pointed out.

Also, the study added, these countries have seen slightly higher increase in their shares in US textiles and clothing market in the recession year 2009 over 2008.

The share of Bangladesh, Indonesia, Vietnam and China increased by 0.5, 0.4, 0.67 and 4.3 percentage points respectively in US imports in 2009 as compared to 0.17 percentage points for India.

In fact, in 2009 Vietnam managed to surpass India in terms of share in US imports of textiles & apparels.

EU & US are the major destinations of India textiles and together account for around two third of Indiaâs textiles and apparel exports.

Also, FICCI observed that in the last five years i.e. from 2004-09, while Indiaâs textiles & apparel exports to US grew by 4.2 percent per annum whereas those of China, Vietnam, Indonesia and Bangladesh witnessed growth of 15.3 percent, 14.5 percent, 8.9 percent and 11.5 percent respectively.

In EU market, while Bangladesh witnessed a positive growth of 3.6 percent in its exports of apparels but counties like China, Turkey and India which are other major suppliers to EU market, experienced negative growth in their exports of apparels in 2009, noted FICCI.

Indiaâs share in EU market of apparel increased from 6.8 percent to 7.2 percent while that of Bangladesh increased from 7.5 percent to 8.9 percent. While Chinaâs share in EUâs apparel imports from third countries increased from 42.7 percent to 44.7 percent but that of Turkey fell slightly from 12.7 percent to 12.2 percent.

In textiles, Indiaâs exports to EU witnessed higher fall than that from countries like China, Turkey and Pakistan.

Indiaâs textiles exports to EU fell by 15.7 percent as compared to 12.9 percent, 15.3 percent and 9.8 percent fall witnessed by China, Turkey, and Pakistanâs textiles exports to EU in 2009 as compared to 2008, noted FICCI.

While Pakistanâs share in EU textile market increased slightly but share of India, China and Turkey decreased in 2009 vis-a-vis 2008.