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China outshines India in apparel export growth rate
Mar '13
India’s garment exports to the world have grown by 21.15 percent from US$ 10.685 billion in 2008 to US$ 12.945 billion in 2012, while China’s apparel exports during the same period have grown by 31.21 percent from US$ 113.021 billion to US$ 148.302 billion, India’s Minister of State for Textiles Smt. Panabaaka Lakshmi said in a written reply to the Rajya Sabha, the Upper House of the Indian Parliament.
Giving the comparison for garment exports to major destinations, she said India’s exports to the EU have grown by a modest 6.34 percent from US$ 5.189 billion in 2008 to US$ 5.518 billion in 2012. In comparison, China’s exports of garments to the EU rose by 20.31 percent from US$ 28.337 billion in 2008 to US$ 34.094 billion in 2012.
India’s clothing exports to the US grew by 7.75 percent from US$ 2.836 billion in 2008 to US$ 3.056 billion in 2012. In contrast, Chinese exports to the US shot up sharply by 59.76 percent from US$ 16.393 billion in 2008 to US$ 26.19 billion in 2012, the Minister said using Global Trade Information Services (GTIS) figures.
To boost India’s apparel exports, the Government’s plan of action has four components -- first, continuation of Market Access Initiatives (MAI) and Market Development Assistance (MDA) to apparel export for market diversification and to increase their share in world trade; second, skill development programme under ATDC to make available skilled workforce to apparel export sector; third, assistance under Knitwear Technology Mission; and lastly, assistance under Technological Upgradation Fund Scheme (TUFS), the Minister said.
She also cited the measures taken by the Government to assist Indian apparel export companies to increase their exports. The measures are (i) Two percent interest subvention scheme on readymade garment sector extended up to March 2014 (ii) Additional incentives for incremental exports to the US, European Union and Asian countries (iii) Additional duty credit of two percent of FOB value given on export of certain knitwear apparels for the year 2013-14 (iv) Inclusion of new markets such has New Zealand, Cayman Islands, Latvia, Lithuania and Bulgaria under Focus Market Scheme (v) Two percent market Linked Focus Product Scheme for USA and EU extended up to 31st March, 2013 (vi) Use of Focus Market Scheme, Focus Product Scheme, status holder incentive scrip and MLFPS for payment of excise duty for domestic procurement and (vii) Extension of Zero duty EPCG scheme up to 31st March, 2013.

Fibre2fashion News Desk - India

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