India’s textile exports stitched-up by weak dollar
Major marketing assault on Middle East markets starts with biggest-ever participation at Motexha 2008 the region’s largest garments & textiles show.India's textile and clothing manufacturers – a vital component of the country's economy – have launched an aggressive "Made in India" marketing push in the Middle East as they battle the impact of the weak US dollar and appreciating rupee on exports.
Led by India's Apparel Export Promotion Council (AEPC), the country will mount it's biggest-ever participation at Motexha, the Middle East's largest garments, textiles, leather and fashion accessories exhibition, which opens at the Dubai International Exhibition Centre today (31 March to 2 April 2008).
Motexha continues to drive the region's textiles industry, estimated to be worth over US$12 billion. More than 250 exhibitors from more than 27 countries will be participating in Motexha 2008, a 12% increase over 2007 with ladies' wear and fashion accessories dominating the industry mix.
AEPC chairman Rakesh Vaid, said the council is undertaking "aggressive marketing of the apparel industry" which was coming to terms with the strength of the rupee and preparing for the challenge. AEPC is sponsored by the Indian Ministry of Textiles and monitors garment export quotas and promotion of readymade garments.
The textile sector has a strategic role in India's economy with Prime Minister Manmohan Singh recently telling the Confederation of Indian Industry that the government "will pay the closest attention to devise appropriate strategies to further promote the growth and competitiveness of this vital industry."
Garments’ exports from India are expected to reach US$14.5 billion by 2010. As well as the appreciation of the rupee against the dollar, India's exports are being hit by increasing competition from China. The effects of a weakening dollar are having less impact however, on neighbouring Pakistan, Bangladesh and Sri Lanka, which are emerging as strong competitors to India in the international textile and garment market.
Like India, Bangladesh is mounting it's biggest-ever participation at Motexha with a major pavilion.
Garments account for 80% of overall exports by Bangladesh - US$9.3 billion out of a total US$12.18 billion in export earnings in the financial year to June 2007, with forecasts that it will cross the US$11 billion mark this year. The Bangladesh Garment Manufacturers and Exporters Association is targeting doubling apparel exports to US$18 billion by 2010.
"Both India and Bangladesh are powerhouses in the garment and textile trade and it is significant that both countries are participating at Motexha on such a grand scale, as they compete for a greater share of the Middle East market," said Jim Meltz, Show Director for Motexha organisers IIR Middle East.
"Motexha's visitor numbers have grown consistently over the years because the overwhelming majority is seeking competitively priced products for everyday wear," he added. "Manufacturers and suppliers at Motexha appreciate the mass market concept of mid-range, high turnover products."
Motexha 2008 will also feature a product specific networking lounge on all three days of the event. The networking lounge will provide the opportunity for visitors to meet the right manufacturers for a particular product profile, share a coffee with industry colleagues and promote business.