NEW DELHI, MAY 11: Chinese clothing exports to the European Union have surged 47% last year to 16.5 billion euro as compared to India? 32% at 3.07 billion euro, following dismantling of quota regime in January 2005.
However, India is becoming price competitive compared to China in some items such as girls skirts, female shorts, blouses and men? shirts.
While these two countries have become the major beneficiaries of the quota abolition, exports from their competitors like Tunisia, Morocco, Turkey, Egypt and Romania have been hurt, says a study conducted by a French fashion institute IFM.
According to the head of the IFM? economic research body, Gildas Minvielle, China with a share of about one sixth of the total world? exports of textile and clothing has performed well and far better than India.
This is because China enjoys substantial advantage on account of huge capacities across the entire textile value chain with economies of scale, flexible labour laws, cheap power, lower interest rates, efficient and sound infrastructure and cluster-oriented approach.
India? exports to the US have registered a growth of 26%, but were lower as compared to China? 58.60%, the US trade data shows.
However, India? immediate neighbours Pakistan and Bangladesh recorded a growth of 10.86% and 19.81%, respectively, according to American trade data. During 2004-05, production of fabrics touched a peak of 45,378 million square meters.
