The Indian trade leaders have expressed worry over the alarming decline in apparel exports to the US and Canada in recent months, which has fallen by 23.63 percent and 25 percent respectively.
According to the figures available here, the Indian apparel exports to the US fell by 23.63 percent to Rs 8,680 million in January from Rs 10,360 million in January 2003.
In February, the apparel exports were down by 19.5 percent to Rs 8,450 million from Rs 10,500 million in the same month last year.
Similarly, exports to Canada fell by 21 percent to Rs 850 million in January from Rs 1,070 million in January last year, and decreased by 25 percent in February to Rs 830 million from Rs 1,100 million in the same month last year.
However, apparel exports to the European Union (EU) rose by 25.31 percent to Rs 18,480 million in January over Rs 13,800 million in January last year. For February, it was higher by 22 percent at Rs 12,790 million over Rs 10,500 million previously.
According to the Confederation of Indian Exporters (CIAs), the data was significant, as the exports to the EU had been increasing steadily, while the exports to the US and Canada was declining.
Some of the reasons described for the decrease are the weakening of the dollar and a large number of bulk orders, being shifted to the countries such as Bangladesh, Sri Lanka, Pakistan and China.
The shifting of orders is stated to be due to the difference in the export price of the Indian exporters and those of the neighbouring countries to the extent of almost 20 percent in some products.
The CIAs sources said that the price of the Indian cotton and yarn, which was being exported the world over, were competitive, but the processing charges in India were very high, which, in turn, hurt the Indian exporters.
They pointed out that the exporters were not getting standard fabrics from the Indian textile mills at reasonable prices and the exporters were looking at China and other countries for the import of the quality fabrics.
The sources warned against a widening gap between the number of new mills coming up and the processing houses.
If this gap was not bridged by increased investments in the processing industry, the Indian apparel exporters could face difficult times in future, they added.