Re-worked data shows surge in textile exports

Compared to the sub-10 per cent numbers thus far, these new figures are more in consonance with industry projections as well as the import data available from markets like EU and US.

DGCI038;S, which is the official agency involved in collating export data, has been criticised last year as its figures failed to show India8217;s growth in the textile sector after the phaseout of quotas in January 2005.

For instance, during April-November 2005, textile exports showed only 8.21 per cent growth at 9.3 billion. However, import data from the two biggest export destinations8212;US and EU8212;suggested that imports from India were always on an upswing.

In fact January 2006 figures for India8217;s exports to the US reveal that it grew by over 48 per cent, not only leaving behind China8212;which registered 17 per cent growth8212;way behind, but also emerging as the highest gainer in the month.

8216;8216;This trend was taking shape in the last two months as well when India8217;s growth rate marched ahead of China, but the reason why it became so pronounced in January is because the safeguard quotas which apply to Chinese exports to the US came into effect from this month,8221; said Confederation of Indian Industries CITI Secretary General D. K. Nair.

The Ministry of Textiles believes that this trend will only grow in future as the impact of rationalisation of duty structure in the man-made fibre segment will start showing.

Manmade fibre segment today accounts for 253 billion almost 56 per cent of the overall global textile and apparel trade of 453 billion. But in the domestic industry, the reverse holds true with cotton accounting for 60 per cent and manmade made fibre making up the remaining 40 per cent of production in the market.

8216;8216;We have always highlighted the difficulties that the man-made fibre industry was facing vis-a-vis cotton as domestically they were turning unviable but more importantly it hampered our exports in a big way. While the global demand was more in MMF, the segment was struggling here which saw exports in the segment go down by 16-17 per cent in April-November 2005,8221; said a senior ministry official.

With the DGCI038;S data now confirming India8217;s prominence in global textile trade, the ministry is confident of exports breaching the target of 50 billion by 2010.

8216;8216;We expect the MMF segment to grow tremendously and with that the exports from the segment will also go up even as we retain our strength in cotton,8217;8217; said the official.