Apparel Online India Magazine May 1-15, 2019 | Page 41

INDUSTRY LIVE
India-China trade reaches new high!
Cotton textile export increases by 69%
Is export-import between world’s
second top economy China and
fastest-growing trillion-dollar and
sixth-largest economy, India, taking
a new shape? At least recent data
for the period Apr.-Feb. 2019 says
so, as the said period recorded an
all-time high in exports and sharp
decline in imports from China.
India’s import from China was
US $ 65.22 billion worth of goods
and export of US $ 15.10 billion
during this time. Trade balance
between the two countries in the
year 2017-18 was US $ 63.05 billion
in favour of China, which has now
shrunk to US $ 50.12 billion (from
US $ 57.87 billion for the period
Apr.–Feb. 2017-18). It is pertinent to
mention here that during the same
year, Hong Kong’s trade deficit with
India – which stood at US $ 3.9
billion in 2017 – turned into a US
$ 2.7 billion surplus, on the back of
rising exports to India. Combined
figures showed India’s trade deficit
with Hong Kong and China expand
7% reduction in the incentives
that the exporters were
receiving earlier and they also
had to adjust to the new system.”
Raja M Shanmugham,
President, Tirupur Exporters
Association (TEA) said the
knitwear exports from Tirupur
is estimated to be Rs. 26,000
crore in last year (2018-19)
against Rs. 24,000 crore in
2017-18, with a growth of 8.3%.
He pointed out that though the
annual average export growth of
7% was recorded last year, while
analysing the knitwear export
trend in the last six months,
the average export growth was
significant about 31.15% over the
corresponding period in 2017-18.
that the higher exports of cotton
textiles including fabrics and
made-ups can not only continue
to significantly contribute to the
reduction of trade imbalance, but
also lead to attracting investments
from the labour-intensive industries
shifting out of China.
to US $ 60.1 billion in 2018 from
US $ 55.4 billion the year before.
Hong Kong is a founding member
of the World Trade Organization
(WTO), and even after the 1997
transfer of its sovereignty from
Britain to China, it has remained
a member of WTO as guaranteed
under the ‘one country, two
systems’ principle.
Irrespective of this issue, positive
thing is regarding the increase
of cotton textile export to China.
The export of cotton textiles had
contributed to the reduction in
trade deficit as export of these
items during Apr.-Feb. 2018-19
had increased by 69% (US $ 1,555
million) over the previous year in
the similar period (US $ 919.76
million). Experts strongly believe
Dr. K V Srinivasan, Chairman,
The Cotton Textile Export
Promotion Council (Texprocil)
pointed out that export of cotton
textiles can increase further if the
tariff disadvantage of 3.5% to 10%
suffered by India in comparison to
Vietnam, Pakistan, Indonesia etc.
on textile products is addressed by
making further special efforts. He
has also praised Suresh Prabhu,
Minister of Commerce and Industry
& Civil Aviation for this path
breaking achievement in reducing
the trade balance.
Recently, India shared with China
a list of 380 products for exports to
bridge trade deficit which includes
textiles items too.
Raja M Shanmugham,
President, TEA
appreciated Tirupur
exporters’ usual
perseverance against
all odds and is confident
that with the continuance
of positive growth trend
coupled with the recent
increase in RoSCTL rate
and formation of stable
Govt., Tirupur exports
is poised to surpass
Rs. 30,000 cr. in 2019-20.
www.apparelresources.com | MAY 1-15, 2019 | Apparel Online India
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