India? exports of cotton yarn, fabric and cotton apparel to the non-quota markets dropped sharply, during April-September, 2005, according to an ICRA report.
Exports registered a 20 percent decline to non quota market compared to the corresponding period last year.
Exports of these items to quota-restricted markets, such as the US, EU and Canada, have gone up by 13.5 percent.
India? exports dropped by 22 percent of these items to markets in the West, South, South East and East Asia, the report said.
Asia had accounted for 23 percent of India? cotton textile exports last year.
Exports of the African countries registered a decline of 16 percent and that of Russia and Eastern Europe went down by 40 percent.
Countries not restricted by quotas such as Switzerland and Australia reported large declines, except Latin America, which reported an increase, the report adds.
The report states sector is likely to show faster demand growth than the recent past as the deregulation of quotas in the global market boosts Indian textile and clothing exports.
However, with significant capacity being commissioned, the polyester industry in India is likely to witness over-capacity over the short to medium term unless the exports of textile and clothing increase significantly.
The continuing global over-capacity situation is likely to exacerbate the situation further, concludes the report.
