Indian textile export prices need to be more competitive

20 Jun '08

4 min read

Pakistan's share in the EU25 market of clothing declined in terms of volume from 3.7% in 1995 to 2.7% in 2007. However, in textiles its share in terms of volume increased from 6.4% in 1995 to 8.02% in 2007 in EU25 imports.

Although, India has only been able to keep its rank intact in EU market at number three, Bangladesh has improved from sixth position in 2002 to fourth in 2007. Similarly in US, Vietnam seems to be fast catching up with our exports.

FICCI said that it is evident that India is facing a severe competition from Asian nations like Vietnam, Pakistan and Bangladesh in its textile exports to these two markets.

While appreciating Rupee is to be partly blamed for this performance of India's exports of textiles and clothing, but there are other factors and disabilities that are making our exports uncompetitive vis-à-vis other countries in global trade.

Issues like economies of scale and labour laws are key factors and determinants of competitiveness and require appropriate interventions in order to enable Indian exporters to increase this share in world textiles trade, FICCI emphasized.

Federation of Indian Chambers of Commerce and Industry

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