According to recent report by CARE Ratings, a rating agency, it has come to light that though Indian apparel exports are expected to see some diminution, the country is in a promising position to boost its portion in world apparel trade, owing to waning competitiveness of China.
With increasing competition from Bangladesh and Vietnam along with the passage of TPP (Trans-Pacific Partnership), the export demand for Indian apparels may moderate. Also, with the recent depreciation of pound with respect to various currencies, the prices of apparel are expected to see a surge which may lead to decline in exports of Indian apparel to the UK, one of its top exporting destinations.
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Also, with the Government initiating efforts to support the industry, India is at an advantageous stage to increase its market share, mentions the report. Due to the rising wages in China, there has been a shift in apparel manufacturing from the country, presenting a huge opportunity for south Asian countries, including India, to increase their share of exports.
With the Government’s continued thrust on export of value-added products like garments, it provides an opportunity for Indian textile industry to increase its share of garment exports, leading to higher foreign exchange earnings and creating higher employment.
It may be mentioned here that according to a recent study conducted by World Bank, a 10 per cent increase in Chinese export prices would result in the US increasing its imports from India by 14.62 per cent and from Bangladesh by 13.58 per cent. Countries such as Vietnam and Cambodia would benefit even more where exports would increase by 37.71 per cent and 51.25 per cent, respectively.
