As EU and US have imposed quota restrictions on textile and clothing imports from China, exports of domestic industry to EU has significantly increased.
In first seven month 2006, textile and clothing industry exported EUR588 million, an increase of 74.5 percent.
After quota imposition, EU buyers who use to purchase goods from China have gradually shifted to domestic manufacturers.
Government has also introduced new policy for promotion of textile and clothing industry. The new policy includes reduction of import duty on textile fabric and fiber from 40 to 20 percent.
Moreover, EU buyers are more attracted to domestic sector as labour cost in textile and clothing industry is lowest in Asia.