Export structure shows India as a growing competitor

03 Apr '07

3 min read

From the export structures, China's major export markets are Japan, the US and the EU, while India's major export markets are the EU and the US. China's exports to the US and the EU each accounts for 14 percent of its total textile and garment exports, while India's exports to the EU and the US account for 25 percent and 27 percent, combination of the two makes up of more than half of the total exports.

Therefore India's dependence on the EU and the US is higher. In addition, China has an absolute advantage in Japanese market, which has greater demand for textiles and garments,

China's exports to Japan decreases, but exports to the EU and the US shows an upward trend. From the beginning of 2005, due to the abolition of textile quotas, EU, the US, and Japan became three major exports markets.

Since the end of the 20th century to 2005, the proportion of India's exports to the EU declined slightly, but rebounded in 2006.

Despite the relatively larger share of India's exports to Europe and the US, India's export value is still far below that of China's. China's exports to the EU and US are US $16.3 billion and $16.5 billion, respectively, while that of India's is $4.4 billion and $4.7 billion. China takes the market shares nearly three times higher than India.

From 2000 to 2006, India's textile exports increased from $4.66 billion to $6.84 billion, an increase of 61 percent. Garment exports rose from $4.5 billion to $11 billion, an increase of 94 percent.

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