Poor competitiveness shreds apparel exports

In the high-margin global export market for apparels, India continues to take a knocking and is down to the fifth position in a new ranking released by the World Trade Organisation (WTO) as part of its International Trade Statistics 2011 .

The data show that India registered a sharp drop of over 6 per cent in apparel exports during 2010 and was the only country to have seen a dip in exports among major clothing exporters during the year.

While Bangladesh and Turkey have climbed well ahead of India in terms of overall apparel exports, Vietnam and Indonesia are closing the gap.

Home textiles

Cumulatively, if home textile and apparel exports are taken into consideration, India managed to hold on to the third spot in the list of top exporters last year, albeit well behind China and the European Union, which top the table.

This was mainly on account of the strong showing by Indian exporters of home textile items such as bedspreads, home linen and curtains to world markets.

Overall, according to the data, global textile and clothing exports grew 15 per cent from $525 billion in 2009 to $602 billion in 2010 despite a wobbly US recovery and initial signs of trouble in the Euro zone.

Country-wise, during the year, India emerged the second largest supplier of home textile and apparel products in the world after China. In the case of home textiles products, exports from India zoomed over 41 per cent in 2010. India came in third in the list of top home textile exporters, after China and the EU, and just ahead of the US.

Loses out to Vietnam, Indonesia

Despite the stellar showing in home textile exports, analysts say the loss of competitiveness in the apparel and clothing segment is grim news as these products entail much higher margins for exporters than home textile products.

Initial market trends during 2011 show that India has ceded more ground to Vietnam and Indonesia in the US market for both textiles and apparels products, while Bangladesh has been ramping up its market share in the EU though the LDC (Least Developed Country) concession that allows it zero duty access to European markets.

During the decade 2000-2010, data for which have been compiled separately by the WTO, Vietnam led the list of the top-five global textile and clothing exporters.

The South-East Asian nation registered a strong 20.3 per cent growth, mainly on account of a spill-over of Chinese investments into that country. China (14.8 per cent), Bangladesh (12 per cent), Turkey (7.8 per cent) and India (7.6 per cent) followed in the list.

According to the data, during the ten-year period ending 2010, China increased its share in world exports from 14.8 per cent to 34.3 per cent, India from 3.3 per cent to 4 per cent, Turkey from 2.9 per cent to 3.6 per cent, Bangladesh from 1.6 per cent to 2.8 per cent and Vietnam from 0.6 per cent to 2.2 per cent.

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