India’s Export Competitiveness of Readymade Garments & China’s Strength.
China appears as the top supplier of Readymade Garments in the world & constitutes approx. 25% share. India with a share of over 3% is the 5th major exporter of RMG after Hong Kong Italy, Germany & Turkey

India’s Exports of RMG to the world was to the tune of 8.08 billion USD in Yr. 2005 whereas China’s Exports in Yr. 2005 stood at 65.9 billion USD.

TABLE I: WORLD IMPORTS OF READYMADE GARMENTS & INDIA & CHINA AS SUPPLIERS

VALUE IN BN USD

 

 

 

 

 

 

 

 

 

Yr. 2000

Yr. 2001

Yr. 2002

Yr. 2003

Yr. 2004

Yr. 2005

%age change        Yr. 2005/04

CAGR

(6 years)

Global Imports

196.42

196.6

203.02

229.5

232.68

266.66

14.60

6.305

India's Exports of RMG

5.66

5.06

5.77

6.16

6.34

8.08

27.44

7.38

China's Exports of RMG

32.29

32.41

36.57

45.76

54.78

65.91

20.32

15.33

TREND OF %AGE SHARE OF INDIA & CHINA AS SUPPLIERS IN WORLD IMPORTS OF READY MADE GARMENTS

TABLE II : MAJOR EXPORT DESTINATIONS OF INDIA & CHINA FOR RMG.

Top destinations of China's Exports of RMG.

Top destinations of India's Exports of RMG.

Rank in World Imports of RMG

 

VALUE OF EXPORTS  (in mn USD)

Rank in World Imports of RMG

 

VALUE OF EXPORTS (in mn USD)

 

Yr. 2004

Yr. 2005

Yr. 2006

Jan-Aug 2005

Jan-Aug 2006

%age change Jan-Aug 2006/05

 

Yr. 2004

Yr. 2005

Jan-Aug 2005

Jan-Aug 2006

%age change Jan-Aug 2006/05

0

--World--

54787.76

65914.22

88612.57

42264.41

55457.06

31.21

0

-- World --

6347.74

8078.05

5414.88

6345.15

17.18

3

Japan

13607.39

14161.05

15175.21

8812.72

9403.59

6.70

1

United States

1769.47

2678.30

1769.50

2078.43

17.46

1

United States

5885.02

11721.80

14180.55

7730.34

7739.00

0.11

4

United Kingdom

597.35

905.58

630.09

645.18

2.40

5

Hong Kong

9351.21

6414.94

8667.58

3891.72

5641.27

44.96

2

Germany

418.21

615.15

423.78

516.50

21.88

37

Romania

435.27

512.60

4961.92

347.60

3362.40

867.32

6

France

471.34

582.75

404.81

503.34

24.34

34

Russia

1788.89

2631.01

3230.47

1646.42

2092.93

27.12

20

U.A.E

597.14

438.57

270.24

324.01

19.89

The tabulation reveals China’s focus on the non traditional export destinations like Romania, Russia etc where it has also registered a significant growth. 

Trend analysis of India’s major export destinations over the last 5 years ( Yr. 2000- Yr. 2005) reveals that India’s top 5 export destinations have remained the same (as indicated in the table above) with variations in the ranking. However in Yr. 2001, Russia appeared as the 5th major destination in India’s exports.

TABLE III: HS CLASSIFICATION OF RMG INTO KNIT & WOVEN APPAREL

HS

Description

China's Exports of RMG(in mn USD)

India's Exports of RMG(in mn USD)

Yr. 2005

Yr. 2006

Jan-Aug 2005

Jan-Aug 2006

%age change (Jan-Aug 2006/05)

Yr. 2004

Yr. 2005

Jan-Aug 2005

Jan-Aug 2006

%age change (Jan-Aug 2006/05)

 

RMG

65914.22

88612.57

42264.41

55457.06

31.21

6347.74

8078.05

5414.88

6345.15

17.18

61

Knit Apparel

30875.73

44902.91

19390.09

27551.99

42.09

2600.74

3016.84

2001.50

2437.24

21.77

62

Woven Apparel

35038.49

43709.67

22874.32

27905.08

21.99

3747.00

5061.21

3413.38