NEW DELHI: India failed to capitalise on the free world textile market and registered only a 'moderate' export growth during the current financial year and lagged way behind arch rival China.
The exports of textile and clothing from India increased by 8.21 per cent to $9.3 billion in April-November 2005. In the run up to the phasing out of quotas, studies had listed India and China as the main beneficiaries of the new global order in textile trade.
China, however, has been more aggressive. While India's exports of textile and clothing to the US increased by 25 per cent, China's exports went up by 58 per cent.
The difference was more evident in European Union. While India's exports were up 10.5 per cent, China increased its exports by 80 per cent.
The US data for the first six months of 2005 shows that exports of textile and clothing of liberalised product lines from China grew by 242 per cent.
The massive increase in exports that was envisaged after phasing of quotas was expected to drive the Indian textile sector.
The sector accounts for 20 per cent of the country's industrial output and 12-16 per cent of total exports.
