The Hindu Business Line : US-China textile pact may not affect India: Exporters

KNITWEAR exporters in Tirupur feel the US-China agreement on textiles and clothing may, in the short-term, slow India's garment shipments, but it would also ensure that it emerges the alternative sourcing point for US garment importers, thanks to the extension of the quota for China's textile goods till 2008.

"India stands to gain in the US-China agreement as it has ensured that China would have to operate with quantitatively restricted textile and clothing shipment up to 2008 and the US buyers have to necessarily look for alternative supply source which certainly works to India's advantage," said Mr M.M. Sampath Kumar, Chief Executive Officer of the Tirupur-based Incado International, a garment exporting unit.

India should not miss the opportunity and has to expand its production base to meet the high volume supplies to the US market by strengthening its manufacturing infrastructure, he said.

Some of the garment exporters are cautious over the development as they are unsure of the immediate impact of the release of China's garment consignments held at the US ports for exceeding the quotas early this year. "Right now, we are getting good supply enquiries from the US buyers. Maybe the release of the Chinese garments by the US ports in the wake of the latest agreement might dampen India's shipment in the initial stages," said a few shippers from Tirupur.

Mr Sundararajan, Managing Director of SP Apparels, said that though the full details of the latest agreement are yet to be studied, it appears that the US-China agreement may not have much sway over the pattern of India's garment shipments. This is partly because unlike China's exports, which are based on mass-production, fashion-oriented garment exports from India being sent on specified shipments would continue to get good enquiries.

Mr R. Gopal, Chairman of Tirupur-based Royal Classic group, said Indian textile/clothing exporters would be in a position now to gain time and room to exploit the export market due to the extension of the quota time for China till 2008. Though China still continues to enjoy the exchange rate advantage in view of their currency, India's export competitiveness would be on even keel if the raw cotton prices remain low to enable it to be globally competitive, Mr Gopal said.

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