Elimination of textile quotas has benefited Asian exports dramatically.
A data by US Office of Textiles and Apparels (OTEXA) revealed that in the first post-quota year, 2005, exports to the US reached $4.6 billion, a 27 percent rise over 2004.
Indian textile companies have also sold much higher volumes in 2005 at 2335 million square metres, a 22 percent increase over 2004.
Indian firms sold apparels worth $2.97 billion in 2005, an increase of over 34 percent.
Analysts predict that availability of cheap skilled labour and low-priced cotton will help India? exports to grow by over 35 percent, in the coming years.
However, China has recorded a much higher export growth in 2005.
China? exports to the US in the same period increased by 54 percent to reach $22.4 billion.
China? much superior capacity for spinning, weaving, or it? ability to price products more competitively, made it the highest gainer after phasing out of the Multifibre Agreement.
While China? climb could be much higher, Indian firms may profit when the US restricts Chinese textile exports in few categories that have exceeded the normal limits impoesed in an agreement settled late last year between US and China.
