M Allirajan, TNN, May 18, 2010, 12.21am IST

COIMBATORE: After declining for several months because of the global financial meltdown, textile exports to the US are finally back on track, recording growth in February and March. Textile and apparel exports to the US, which account for more than a quarter of shipments made by the industry, rose 8.3% year-on-year (y-o-y) in March to $487.8 million. Exports increased 7.7% y-o-y to $443.5 million in February, data with the office of textiles and apparel, US Department of Commerce shows.

Apparel exports to the US, however, posted a modest 2.8% growth in March to $315.1 million. “Demand has started to pick up in the US. The bookings are quite reasonable and (trade) enquiries have also been quite good,” says Premal Udani, chairman, Apparel Export Promotion Council (AEPC).

“We are seeing a real improvement across all segments of the industry. Orders are coming in and after nearly two years of slowdown we are witnessing a recovery,” says P Nataraj, managing director, KPR Mill. “The recovery is slowly taking shape in both domestic and international markets.” “This year (fiscal 2011) would definitely be better,” says A Sakthivel, president, Tirupur Exporters’ Association (TEA).

Garment exports to the EU, the largest market bloc for Indian markets, however, continues to remain weak. “Europe (demand) is somewhat weak because of the uncertainty faced by some countries (in the region),” says Udani.

“Orders to EU countries have been quite weak but the US has been much better,” says an exporter. Apparel exports to the EU are estimated to have come down by 16.8% to $4.5 billion in fiscal 2010.

While the industry is seeing a silver lining, some officials advise caution. Though inquiries are good, exporters are finding it difficult to convert them into orders as they have been adversely hit by rising raw material prices and the rupee appreciation, says Sakthivel.

News Source is http://timesofindia.indiatimes.com