Tirupur, Aug 20 (UNI) For the first time in the history, the total exports from Tirupur has declined to Rs 9,950 crore in 2007-08 from Rs 11,000 crore in 2006-07, a fall of ten per cent, Tirupur Exporters Association (TEA) President A Sakthivel has said. Addressing the 18th Annual General Meeting of the TEA here last night, he said apart from loss in exports, there was job losses in Tirupur exporting units due to shortage of manpower.
He said India joined the ranks of 12 countries with a trillion dollar GDP in nominal terms. When the GDP was growing above nine per cent, consequently for four years, unfortunately, sub prime crisis in US and spiraling oil prices globally played a havoc on Indian economy.
Stating that increasing inflation has also dented the continuance of nine per cent GDP growth in the country, he said another major concern this year was that the country had attracted not only Foreign Direct Investment (FDI) but also Foreign Institutional Investments (FII), thanks to boom in the stock market and ultimately copious inflow of dollars into the country had led into appreciation of rupee against dollar in an unprecedented way.
Speaking about the new export markets, Mr Sakthivel said the imports statistics from US for the six months period from January to July 2008 revealed that while countries like Vietnam, Cambodia, Indonesia and Nicaragua, including Bangladesh were increasing their knit exports, especially in Category 338 and Category 339 to US compared to the corresponding period of previous year, India and China have recorded negative growth for the same period.
Similarly, exports to European Union have also come down slightly. These two prime markets signalled that India has to enhance its competitiveness and exploit full potential to sustain and grow further.
He said China was gradually loosing its competitiveness as the prices of Chinese goods were on the rise. Actually, the business scenario in China has changed and they are no longer in a position to continue to produce low cost goods and export it since they are already run out of road with low-cost labour strategy coupled with reduction of VAT refund given to their exporters and rise in input costs, including power.
Other notable change was that the Chinese Government has allowed their currency to get appreciated against Dollar by about 6.5 per cent, he said adding that however, some of the measures like restriction on bank lending and curbing exports were taken by China to reduce the trade surplus and check increasing inflation.
With this new-found opportunity, India could have a level playing field in the global market and might help the country to enhance competitiveness, he added.
UNI KS ROY 1020