South Asia is not only one of the most populated regions in the world but also an emerging market for textiles and garments. It is blessed with benefits such as the availability of abundant and cheap labor, water, and other raw materials for textile manufacturing processes, a large production of cotton, proximity to growing markets, and more. Therefore, the South Asian region has become a potential global center for textile and clothing exports.

Countries like the United States, United Kingdom, and the European Union are highly dependent on textile products imported from South Asian countries. Their textile manufacturing units have been relocated to these low-cost countries. South Asian countries such as India, Sri Lanka, Pakistan, and Bangladesh were the main beneficiaries with the removal of textile and clothing quotas from the developing nations. However, Maldives and Nepal considerably lost due to this change.

India, Bangladesh, Pakistan, and Sri Lanka are the leading exporters of textiles in Southern Asia. A major portion of textile and apparel exports goes to the U.S. and EU from these South Asian countries. Textile exports of South Asian countries to the U.S. and EU comprise the following:

  • Cotton
  • Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn
  • Strip and the like of man-made textile materials
  • Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof
  • Silk
  • Man-made staple fibres
  • Carpets and other textile floor coverings
  • Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery
  • Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use
  • Knitted or crocheted fabrics
  • Articles of apparel and clothing accessories, knitted or crocheted
  • Other made-up textile articles; sets; worn clothing and worn textile articles; rags


According to the report provided by the Apparel Export Promotion Council, India's textile exports were valued at $40 billion in 2013. The total global textile exports were estimated to be worth $772 billion, with India's share being 5.2%. India's share in the global textiles market increased by an impressive 17.5% in 2013. India demonstrated a remarkable growth rate of 23%, surpassing China and Bangladesh, while the global textiles growth rate stood at only 4.7%. This growth rate is indeed exceptional. India achieved the distinction of surpassing Germany and Italy to become the world's second-largest textile exporter.

 

Textile includes everything from yarn to fabrics like silk, cotton, wool, special woven fabrics, apparels, etc. India ranks among the top five global clothing suppliers. Apparel exports of India shares 3.7% of the global readymade garment exports. India ranked sixth in the global trade of readymade garments with exports of $16 billion in 2013.

 

Bangladesh has become worlds second largest apparel exporter after China due to cheap labour and duty-free access to western markets. Around 60% of the clothes made are exported to Europe and 23% to the U.S. Exports of garments in the year 2013 was up by 13% while it rose to 11% in the previous year. The graph for textile exports of Bangladesh shows that export of woven fabric & other vegetable textile

fabric is highest in U.S. and EU. Export of cotton is the lowest in U.S. while export of special yarns, nonwoven, wadding, ropes etc. to EU is very low.

 

Textile and apparel industry is considered to be the back bone of Pakistans economy. Due to cotton production in large quantity, cotton textile and apparel industries have been contributing more than 67% to total export earnings of Pakistan which is why it is considered among the important industries for generating revenue for the country. Apart from generating revenue, textile and garment industry employs over 38% of manufacturing labour force.

 

In the last few years, Pakistan has imported textile and garment machinery worth U.S$ 4 billion which has extensively improved the productivity and quality of Pakistani textile products. It has also contributed to a notable growth rate of 66.29% in the current financial year. The government of Pakistan is aiming for exports of over US$ 10 billion in textiles and garments.

 

The cotton exports of Pakistan to U.S. in 2013, were approx. $ 114million, carpets and other textile floor coverings were $78 million, man-made staple fibres $12 million, impregnated, coated or laminated textile fabrics $3million. From the compound annual growth rate of Pakistans textile export one can see that there is a significant decline in export of silk. Similarly, exports of cotton, nonwovens, wadding, special yarns, special woven fabrics, tufted textile fabrics, lace etc. has decreased compared to 2012.

 

Looking at the textile export data of India, Bangladesh and Pakistan, we can conclude that South Asian countries have a potential to develop itself as a global textile and clothing hub. In the future, South Asia will be in a commanding position for textile manufacturing as well as exports of various textile and textile products in the world.


References:

1. Dnaindia.com

2. Timesofindia.indiatimes.com

3. Textileworldasia.com

4. Textileasia.com.pk

5. Reuters.com