India's garment exporters to the us on growth track

Over the past three years, lndia's garment exports to the US have grown. In comparison, large garment exporting countries to the US, including China, Bangladesh and Vietnam have seen a decline in unit realisation. India, has not only maintained realisations but also expanded market share. The average realisation per square meter equivalent of apparels exported by India to the US has risen. The average for China has fallen 13 per cent whereas for Bangladesh it dropped by 11 per cent. Vietnam reported a drop of nine per cent in average realization. Due to rising labor costs in China, Chinese apparel manufacturers have been slashing prices to stay competitive in the global market.

 

Manmade garments such as winter wear and other specialised garments fetch higher value in the US than cotton-based garments. Compared to China, which lost market share by 380 basis points to 38.2 per cent between 2014 and 2017, India's share rose by 80 basis points to 4.5 per cent.

 

Indian apparel manufacturers are becoming compliant to US norms in terms of quality of products, labor conditions, and other legal aspects. While this has increased India's cost of production, US buyers are willing to compensate for this by paying higher prices.

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