India loses 46% share in global textile trade
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India loses 46% share in global textile trade

By agencies   |   Friday, 30 December 2005, 08:00 Hrs
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NEW DELHI: The phasing out of the quota regime has led to a 700 percent hike in China's market share in global textiles exports, while this had created a negative impact on Indian textile market. According to an Assocham study on the Indian textile sector reviles that India lost 46 percent market share in the global textile trade.

The study titled 'Post ATC: Competitiveness and Protectionism: A Study on India’s Textile Sector' revealed that China's share in the global textile market which was around 9 percent in 2001 went up to 72.3 percent in 2005, against India's share of textile exports which was 2.8 percent in 2001 and went down to 1.6 percent in 2005.

The major reason for the massive rise of Chinese textile exports in the global market is not only because China has been offering a competitive edge over its rivals, but also due to the opening up of its retail sector to multinational companies (MNCs). This contributed largely to the sale of Chinese apparels outside the country also, the study said.

Assocham’s President, Anil K Agarwal said, “India lost its exports edge because it failed to create a supply value chain for its textile products by continuing to deny MNCs retail entry into the country. Out of 70 leading retailers, the world over, 40 well known names have been operating in various provinces of China without adversely affecting their domestic retail chain.”

The Assocham study also sought a $0.5 billion investment in India's textile sector, which would result in an increase of $1 billion worth Indian textile exports in the international market. It would also enable India to achieve the $50 billion export target by 2010, with a $25 billion investment. This would also generate 12 million new job opportunities of which at least 70 percent would be in rural India.

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