Domestic textile exports outpace China in January

The Indian textile exports have outperformed China in terms of growth for the third month on the trot.

The latest figures of the US Office of Textiles and Apparel (OTEXA) revealed that textile exports in January grew by 34 per cent in volumes, higher than China's 21 per cent. Pakistan though, performed better than India at 36 per cent.

"In November 2005, Indian textile exports grew faster than that of China's. In December the growth was sustained and again in January this year, the domestic exports to the US picked up. This proves that China's is not a big threat as was believed," said D K Nair, secretary general, Confederation of Indian Textile Industry.

"And that this garment-driven export growth, is good for us," added Nair.

Indian apparel exports to the world's biggest market, US, clocked the highest growth among the developing countries. It grew by 46 per cent in volumes as compared with China's 15 per cent and Pakistan's 35 per cent. The country's non-apparel exports were up by 28 per cent. Pakistan clocked a highest growth of 36 per cent and China's non-apparel exports grew by 22 per cent.

In terms of value too, India's textile exports grew by a handsome 48 per cent. This was higher than China's 17 per cent and Pakistan's 46 per cent growth.

According to analysts, the Chinese industry has been under pressure owing to increasing wages and tight labour standards. This, according to them, has reflected in the figures.

"There also has been criticism over its undervalued currency. Moreover, with the state controlling the enterprises there is lack of monetary discipline with almost 45 per cent of loans becoming NPAs. Having committed to include all elements of a market economy by 2008, China is now under the West's scanner to make changes," says Nair.

Cotton production has also dropped in China, owing to decreasing acreage. This has benefited India, which this year is expected to channelise 80 per cent of its cotton exports to China. As for the growth in Indian exports, the momentum will continue through the year, say experts.