The textile and apparel trade between India and the US is not entirely a one-way street, as is generally believed.
India has been at the top of the list of fastest growing export markets for American apparel and textile products during the first eight months of this year. Ironically, this is at a time when the US industry is reeling under the impact of a continuing downturn and the US textile and apparel industry is severely cramped by its lack of competitiveness.
Data from the US Department of Commerce show that during the first eight months of 2011 textile and apparel exports to India went up 30 per cent, though the total value of the exported articles is relatively small at $164 million.
The items coming into India from the US include apparels, yarn, hosiery products as well as speciality and industrial fabrics. Items such as yarn coming in could be for re-export from India back to the US, industry players said.
Of the total imports from the US, yarns made up the biggest chunk at $51 million. The Netherlands tops the list of exports markets for American apparel and textile products, followed by Brazil, with India coming third.
Interestingly, this also comes at a time when India is steadily losing ground to Vietnam, Indonesia and Bangladesh in the US market for apparel and textile products. Taking advantage of a weakening Chinese stranglehold over global textile markets, these countries have steadily grown their market share this year. This, even as Indian suppliers have struggled to keep up with the competition. The balance of trade in textile and apparels is overwhelmingly in favour of India. As against exports worth $141 million from the US to India during calendar year 2010, India's total textile and clothing exports to the US stood at $5.38 billion in the same year.