India regains its third position as RMG supplier to UK

The UK, a leading trading power and financial center, is oneof the quintets of trillion dollar economies of Western Europe. Over the pasttwo decades, the government has greatly reduced public ownership and containedthe growth of social welfare programs. Agriculture is intensive, highlymechanized, and efficient by European standards, producing about 60% of foodneeds with less than 2% of the labor force. The UK has large coal, natural gas,and oil reserves; primary energy production accounts for 10% of GDP, one of thehighest shares of any industrial nation. Services, particularly banking,insurance, and business services, account by far for the largest proportion ofGDP while industry continues to decline in importance. Since emerging fromrecession in 1992, Britain's economy has enjoyed the longest period ofexpansion on record; growth has remained in the 2-3% range since 2004.

Key Economic Indicators of UK

UKs exports of RMG

UKsExports of RMG was to the tune of US$ 5.61 Billion in the year 2007 showing agrowth of 15.08%.  Woven Apparel constituted nearly 55% share during thelast 3 years whereas knit apparel exports constituted approximately 45% in RMGexports by UK.

Major Export Destinations of UK for RMG during the last 3 years were as follows: -

UKs imports of RMG

As per UN database, United Kingdom (UK) appeared as the 2nd largest importer of RMG in EU27 Group and 4th largest in World with 16.79% & 7.28% share respectively.  The EU27 region constituted 43.4% share in World RMG Imports.

 
UKs Global Imports was to the tune of US$ 631.880 Billion in the year 2007 showing a growth of 31.27% and India had a share of only 1.17% as 17th supplier country.  India showed a remarkable improvement in ranking from 24th Position in 2006 to 17th supplier country.  RMG constituted 3.74% share in UKs total imports and Woven Apparel (HS 62) and Knit Apparel (HS 61) ranked as 11th and 13th largest products imported by UK.  

The tabulation below depicts share of Woven Apparel and Knit Apparel in RMG Imports of UK during the last 3 years : -

The tabulation reveals that imports of knit apparel have shown improvement in terms of both share and growth in 2007.

Major Supplier Countries to UK for RMG during last 5 years

• The above tabulations show that India which was the 3rd largest supplier in 2003 came down to 8th position and again gained its 3rd position in 2007.  Indias share has increased from 3.63% in 2003 to 6.09% in 2007.  There is a growth of 13% in Indias percentage share 2007. 
• Hong Kongs share showed a decline of 22.39% in 2007 as imports in value terms have also declined by 13.19% in 2007.
• Share of Romania has declined during the last 5 years period.
• Sri Lanka, which was 10th largest supplier in 2003 & 2005, became 8th largest supplier in 2007.

There are 6 Product groups where Imports from India grew by more than 50% in the year 2007: -

There are 9 Product groups where Imports from India declined in the year 2007: -

Tariffs

Total Tariff lines for RMG in UK are 448 at the 10 Digit HS Code level out which 174 are under HS Chapter 61 (Knit Apparel) and 274 are under HS Chapter 62 (Woven Apparel).  The tabulation below provides duty range under HS Chapter 61 & 62 for Bangladesh, India, Indonesia, Sri Lanka and European Union: -

Source: AEPC Weekly

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