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India ranks 3rd in EU textile imports, 7th in garment imports

E-Tex Staff - Mumbai

The Indian textile and clothing industry has been stating, as one of its strengths, the ability to supply small lots, and high fashion products, which is especially suited to serve the European markets. While this may be true, the Indian industry needs to gear up in this market also, as its shares in EU’s textile and clothing imports are way below that of its main competitors. In textiles, India is the third largest supplier to the EU, accounting for a share of 9.2 per cent. However, in case of EU’s clothing imports, India ranks seventh, with a share 4.6 per cent, as against China’s share of 19.2 per cent, Turkey’s share of 14.2 per cent, Romania 7.2 per cent, Bangladesh 6.1 per cent, Tunisia 5.4 per cent, Morocco 4.9 per cent, and India 4.6 per cent. This clearly reveals that intra-EU trade is gaining importance. This point is further emphasised when we look at EU’s exports of textiles, most of which goes to its member states, for purposes of conversion. According to industry experts, “The EU member states will gain in importance as conversion centres in the years to come, more so as the EU keeps growing in numbers. Trade blocs, FTAs, PTAs will rule world trade to a great extent.”

According to industry analysts, “The world trade in textiles is bound to come down, while that of garments will go up. China will remain a dominant player in world trade, and India will gain more business after removal of quota restrictions. However, with no clear strategy for the Indian textile industry as a whole, the gains would not be as much. There is still no clear direction for the Indian weaving and processing sectors, and this can well hamper export growth in garments.”