INDIA: Indian Apparel Exports Losing Competitive Edge.

Shipments to the European Union (EU) and the US account for nearly two-thirds of the country's textile and apparel exports, but registered a decline by value of 11% in 2009.

Between 2004 and 2009, India's textiles and apparel exports to the US grew by only 4.2% per annum, while China, Vietnam, Indonesia and Bangladesh saw growth of 15.3%, 14.5%, 8.9% and 11.5% respectively (by value).

In 2009, Vietnam overtook India in clothing and textile exports, said the FICCI report.

A similar trend was witnessed in apparel exports to the EU, where despite the recession, Bangladesh managed a positive growth of 3.6% by value in 2009, while India, along with China and Turkey registered a decline.

According to the FICCI, in 2005 India and Bangladesh commanded an almost equal share of EU apparel imports, at around 6.2%. However, by 2008 Bangladesh rose to a share of 7.5%, while India managed only 6.8%.

In 2009, this gap further widened with the Bangladesh shared going up to 8.9% and India's to 7.2%.

The report also noted that while China's share of EU apparel imports increased from 42.7% to 44.7%, Turkey's fell slightly from 12.7% to 12.2%.

In textiles, India's exports to the EU witnessed a decline of 15.7% in 2009 as compared to 12.9%, 15.3% and 9.8% decline registered by China, Turkey, and Pakistan respectively. Pakistan's share in the EU textile market increased slightly but India, China and Turkey saw a decrease in 2009.

FICCI has this year recommended various steps to turn around the Indian clothing industry, including diversifying export markets; encouraging consolidation of small and medium size enterprises; manufacturing high-tech fibres; making more textile equipment locally; and more technological support from the government.