Denim apparel export from India to USA is picking up in 2019!
During the first 6-month period of 2019, India exported denim apparels worth US $ 20.43 million to USA, marking an impressive 54.50 per cent growth.
However, what is notable is that the country still occupies 14th spot in denim apparel exporters tally to USA and countries such as Sri Lanka, Colombia, Jordan, Lesotho and Nicaragua are ahead of India.
According to OTEXA, the total import done by USA in denim segment was valued at US $ 1.74 billion, which is up 3.92 per cent on Y-o-Y basis. India’s share is just 1.17 per cent in this value.
Mexico continued being the top exporter for the second consecutive month, beating China by a significant margin. During January to June 2019, Mexico clocked US $ 410 million (up 14.44 per cent) in its denim apparel exports to USA, while China dwindled by 10.14 per cent to ship just US $ 369.97 million worth of denim apparels.
US imposition of tax on China and ongoing trade war between both the countries restricted China’s shipment to USA. Mexico, a member of NAFTA, benefitted from the situation due to no tariffs on denim jeans whatsoever.
Bangladesh, on the other hand, witnessed marginal growth of 1.13 per cent and the shipment was worth US $ 247.20 million. The country is facing stiff competition from Vietnam which is fiercely escalating its share in the USA denim industry. In first 6 months, Vietnam exported denim apparels worth US $ 142.31 million, growing at a rate of 29.36 per cent.
Seeing the data, the road for the Indian denim exporters is not easy as unprecedented growth of Mexico and Vietnam poses a great challenge for the Indian denim export industry.