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Pakistan concerned over India's textile export growth to EU

Though Pakistan enjoys GSP Plus advantaged with the European Union (EU), it is concerned about the preparedness of Indian exporters and tremendous surge in apparel exports from India to EU. This, despite the fact that India does not have a GSP Plus advantage.


Though Pakistan took advantage of the GSP Plus that offered huge duty concession, in the first three months of this year with quantitative export growth of 28 per cent in knitted garments and 29 per cent in woven garments since January, according to the EUROSTAT data, Indian textiles showed remarkable growth in value-added exports in the first three months of 2014.


As per the data, Indian knitted garment exports registered a quantitative increase of 25 per cent, while its woven garment exports increased by almost 50 per cent in quantity after Pakistan got the GSP Plus status. Bangladesh that was already ahead of both India and Pakistan in the value-added exports to EU increased its knitted garment exports by 23 per cent, while its woven garment exports declined by six percent in quantity.


The momentum in the value-added apparel is still on, as knitwear exports though substantially reduced as in quantity terms knitwear exports increased by 57.8 per cent but value-wise the increase was only 17.64 per cent. In woven garment, the quantity-wise increase registered in May was 30.53 per cent but in value terms it was reduced to only 12.33 per cent. The exports in value increased above the exports in quantity in the first quarter of 2014.


Experts point out that the trend shows India targeted the low value-added garment market that Pakistan is aiming to capture. Moreover, the Indian exporters were facilitated by their government that increased export rebates on all garments substantially after Pakistan was granted GSP Plus status. 


Yarn exports have declined both in terms of quantity and unit value. In May alone, Pakistan exported 29 per cent less yarn than May 2013 in quantity terms and 27 per cent value wise. Its fabric exports were down by 35 per cent in May 2014 in quantity terms and 6.4 per cent in terms of value, according to the official statistics.