March 5, 2002

`19’

TEXTILES EXPORTS

    During April-October, 2001 the overall textile exports registered a decline of 13.9 percent, as compared to the same period previous year. All items recorded a decline in export earnings except for coir products (13.6%). The textile export items showing a decline include Ready made garments

    (-15.6%), Raw cotton incl. Waste, Cotton yarn fabrics (-11.9%), wool & woolens (-17.0%), Manmade textiles (-2.8%), Silk Products (-28.4%), Handicrafts (-26.6%) and Jute goods (-5.0%) respectively.

    During the month of January, there has been a slight improvement so far as the garment exports are concerned. There has been 6% increase in exports in quantity terms. but a decline of 4% in value terms. The non-quota countries, particularly those in South America, Mexico, Columbia Etc. are able to export in US market at a cheaper rate than the Indian manufactures. Apart from the high transportation cost, the Indian exporter has to pay 17% tariff, which non quota countries do not have to pay. This has resulted in the decline in realization in value terms.

    The export of yarn and cotton fabrics has shown a rising trend. The demand of denims from India is increasing. Similarly, demand of made-ups in US market has also shown a rising trend. However, there is a decline in demand for the grey fabrics while the demand for processed fabrics have shown a distinct rise.