Weak rupee has spurred India’s apparel industry.
By Deepak Chitnis
WASHINGTON, DC: A study commissioned by the US Department of Commerce finds that India has become the third-highest exporter of apparel and textiles to the US.
Overall textile imports into the US rose 3%, but imports from India alone are up 4% from last year, meaning India trails only Vietnam (13.5%) and Bangladesh (9%). India’s apparel and textile exports for the first seven months of the year totaled $3.73 billion in value. Of that sum, $2 billion (54%) accounted for apparel, while $1.73 billion (46%) came from textiles.
The study, undertaken by the Department of Commerce’s Office of Textiles and Apparel (OTEXA), applies to the months of January through July of 2013.
India’s emergence in the top three is significant because of India’s decline in apparel and textile exporting in recent years. India failed to even make the top five last year; during the first nine months of 2012, Indian textile shipments had declined 1.45% from the same period of time in 2011, which represented the largest decline of all the major exporters to the US.
The main reason for the upsurge in US importing of textiles from India is said to be the weakness of the rupee, which made India a far more attractive commercial prospect than many of its competitor nations. The fact that the US economy is also on a slow-but-steady resurgence back to its pre-recession days also factored into the increase.
DK Nair, the secretary of the Confederation of Indian Textile Industry, also says that more robust sales domestically within India contributed to more production for international markets.
India’s main textile exports consist of yarn, fabric, and “made-ups,” which are sort of ready-made garments and fabrics. The US and European Union together account for 80% of the world’s textile and clothing imports.
To contact the author, email to deepakchitnis@americanbazaaronline.com
1 Comment
I hope local industries are promoted more. India has a massive pool of artists unmatched in the world. India should work hard to do that