India ahead of China in textile exports: Vaghela

India has overtaken China as exporter of textiles to the US and Europe markets due to cap on Chinese textiles in those geographies.

China's textile export in the last quarter of 2005-06 stood at 9%, while that of India was 13% after the quota regime was abolished in January 2005 under the WTO agreement, Shankarsinh Vaghela, union textile minister, said here today.

"The 10% cap on Chinese textile exports will continue till 2008. This has provided ample opportunity for India to establish herself in the export market and compete with China when cap on its textile exports would be lifted," Vaghela added.

After january 2005, exports to US increased 26% and those to European countries increased 18%, Vaghela said.

The ministry plans to create 25 textile parks in the country, out of which approval has already been given for nine. "Each textile park would require investment of Rs 100 crore, of which Rs 40 crore would be given as subsidy by the textile ministry. One textile park would employ around 15,000 people," he added.

"Out of 25 textile parks, one would be located at Surat and one in Kutch. Proposals of three other textile parks from Gujarat are pending with the ministry. A textile plaza would also come up at the Jahangir Mill Compound in the city," he added.