The Centre's 'Make in India' pitch seems to have already found resonance in the country's textile and garment industry, with India's exports to its largest single market, the US, headed for a record surge this year.
While a renewed buoyancy in textile and apparel exports is helped by a sharp improvement in raw material supplies, the strong performance by India this year is also a reflection of a combination of global factors - a steady improvement in demand as the American economy picks up, a progressive decline in Chinese exports to major markets such as the US, currency appreciation in Indonesia, labour unrest in Asian competitor Cambodia and safety concerns after a major factory fire in Bangladesh last year.
Indian textile and apparel exports have risen nearly 7 per cent during January-August 2014, according to US Department of Commerce's Office of Textiles and Apparel (OTEXA) data compared with an average 2 per cent annual growth in the last five years. The growth in exports this year is being seen as significant as it happened despite the sharp strengthening of Indian rupee since September 2013 (a stronger domestic currency results in a loss of competitiveness for exporters and vice versa).
While the steady pick in US demand is a major factor, larger domestic cotton supplies are also helping India push textile and apparel exports. India is projected to be the world's top cotton grower this year, ahead of China for the first time in over three decades, according to Seotember 12 US Department of Agriculture forecast that has been corroborated by the Cotton Association of India.
Written by Anil Sasi | New Delhi | The Indian Express
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