India may miss 2011-12 textile & garment export target.

It seems that the Indian textile and garment exports may have missed the target of US$ 33 billion set for fiscal year 2011-12, mainly owing to slackening of demand from the European market.

After exporting textiles and apparels worth US$ 26.8 billion in 2010-11, India had set an ambitious target of exporting US$ 33 billion worth of goods during the last fiscal which ended on March 31, 2012.

The high target of US$ 33 billion was set as it seemed that demand had returned after the global economic crisis of 2008. But, the volume of exports got affected due to eurozone debt crisis.

India is likely to fall short of the target by US$ 1-2 billion, according to provisional estimates of Confederation of Indian Textile Industry (CITI).

Mr. DK Nair, Secretary General of CITI, told fibre2fashion, “The global economic slowdown is the major reason for our exports of textiles products not growing as much as we had expected. Especially, the European crisis had a very significant adverse effect, as about one-third of our total exports are destined to West Europe.”

Informing about the market share enjoyed by Indian textile and apparel items in world trade, he says, “We have a share of slightly above 4 percent in textiles and slightly below 4 percent in garments in global trade. Both combined, we have a share of more than 4 percent.”

Naming the major export destinations for India's textiles and apparels, he says, “For Indian apparels, the major destinations are West Europe and North America. For textiles (especially yarn), in addition to these two, Bangladesh, Korea, Indonesia and China are also our major markets.”

Estimating India’s likely textile and apparel exports in fiscal year 2012-13, he opines, “I am not sure whether the Government has finalized the textile and apparel export target. But, according to my estimate, exports of textiles and clothing during 2012-13 may reach around US$ 28 billion.”

Source : fibre2fashion.com