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EU emerges as major market for textile exports

May '06
The European Union is emerging as a major export market for Indian textile to nudge out the US.

Textile exports to the EU market has increased, especially in value-added segments like garments; with Spain, the UK, Germany, France and the Netherlands emerging as fastest growing markets during major part of last fiscal, according to latest Government data.

Since global textile trade opened up in January last year, the US market has been the major destination for Indian export growth.

According to industry players, India will be able to reinforce its position stronger in the EU as the European countries go ahead with their clampdown on Chinese textiles, footwear and leather goods, this year.

Apparel Federation of Spain is planning to sue the European Commission for allowing China to outstrip its 2005 textile-import quotas by permitting 21 million extra garments to enter the EU.

Spain has turned out to be the fastest growing market for export of Indian textile in most segments. Indian textile exports to Spain grew 57 percent in value terms during April-October last fiscal, compared to previous year.

The UK market saw a 35 percent increase in exports, a jump of 34 percent was recorded in exports to Germany and a 20 percent export growth to France, as against a 16 percent increase to the US market.

Increase in Indian exports to the EU is, however, on a lower base as compared to the US.

Finished products form major increase in exports to EU, with cotton garments exports for April-October period going up by 99 percent to Spain in value terms, a 55 percent growth to the UK, a 76 percent growth to Denmark, as against 18 per cent growth to the US.

Man-made fibre garments exports to Germany went up 64 percent, the UK 60 per cent, Spain 59 percent and France 49 percent, as against a 19 percent growth to the US during the same period.

Woolen garment exports jumped 117 percent growth to Spain, Italy and France recorded a rise of 32 percent jointly, as against a decline of around 11 percent to the US during the seven-month period.

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