More women could lose jobs in textile industry

UNDP REPORT: TRADE ON HUMAN TERMS

India's textile exports may have gained by $2 billion following the lifting of quotas from January 1, 2005, but have lost market share in cotton trousers and many female workers could lose their jobs, according to a UNDP report on 'Trade on Human Terms'.

"India has lost market share in cotton trousers, but gained in cotton fibre dresses and men's cotton-knit shirts. Although no job losses have been reported yet, many female workers are expected to lose their jobs when the textile industry replaces handlooms by machine looms," the report said.

According to the report, which has analysed the impact of the lifting of quotas (within Asian exporters), the biggest gains have been experienced by China and India.

In the United States and the European Union, China's textile exports increased from 20 per cent to 27 per cent, while that of India went up from around 5 per cent to over 6 per cent.

The initial losers in terms of decline in value of exports to both US and EU are Nepal, Philippines, Thailand and Pakistan.

The report states that in the long term, China, like other industrialising countries, is likely to shift from manufacture of relatively simple goods like textiles and clothing and lay more emphasis on high-tech industrial products such as electronics.

In value terms, India's share in the US market in textiles and clothing increased from 4.6 per cent in 2004 to 5.4 per cent in 2005, while its share in the EU market increased from 6.8 per cent in 2004 to 7.5 per cent in 2005.

China's share in textiles and clothing in value terms increased in the US from 17.2 per cent to 24.2 per cent in 2005 while its share in the EU market increased from 23 per cent in 2004 to 30.7 per cent in 2005.

The share of Bangladesh in the US market increased marginally to 2.6 per cent in 2005 from 2.3 the previous year while its share in the EU has fallen to 5 per cent in 2005 from 5.6 per cent in 2004.

Pakistan's share in the EU has also fallen marginally to 3 per cent in 2005 from 3.6 per cent in 2004 while its share in the US has improved marginally to 3.1 per cent from 2.9 per cent in 2004.

Sri Lanka's share has remained largely unchanged at 1.8 per cent for the US and 1.1 per cent in EU in 2005 from 1.3 per cent in 2004.