China emerged as the leading source of India? textiles imports in the last five years as its textiles exports to India rose by 597.26 per cent from $78.71 million in 2000-01 to $548.81 million in 2004-05, according to a study conducted by the Associated Chambers of Commerce and Industry of India (Assocham).
Out of India? total global textiles imports, which stood at $597.74 million in 2000-01, China? share was $78.71 million, the Assocham study on Post ATC Competitiveness & Protectionism, has highlighted. This, however, shot up to $548.81 million in 2004-05 against India? total global textiles imports of $1,502.50 million. This works out to be an increase of 597.26 per cent in value terms. In percentage terms, however, India? textile imports from China in the year 2000-01 was 13.17 per cent against its total global textile imports which almost trippled to 36.53 per cent in 2004-05 against India? total global textile imports, adds the study.
Releasing the study here today, Assocham president, Mr Anil K Agarwal stated that Chinese textiles exports to India rose because their prices internationally witnessed a downtrend in the period, which ushered in cut throat competition among all leading economies of textile products and China happened to survive it so well because of its higher production of textile products with lower prices.
The study also says in the first nine months of the quota-free regime, India? textile exports dipped by 10.1 per cent to $4.7 billion, while exports of readymade garments fell by 1.8 per cent to $5 billion. Exports of textiles and readymade garments to the EU, accounting for 35.3 per cent of India? textile exports, went up by a meagre 3.7 per cent to $3.4 billion during January-September 2005. During January-June 2005, India? textiles and apparel exports to the US increased by about 24.2 per cent.
However, the study points out, the textiles sector fared well in the first half of 2005-06 as the weighted production index went up by 10.3 per cent, compared to a 6.5 per cent rise in the corresponding period of the previous year.
