According to an ICRA report, India’s exports of cotton yarn, fabric and cotton apparel to the non-quota markets dropped sharply, during April-September, 2005. Exports registered a 20 % decline to non quota market compared to the corresponding period last year. Exports of these items to quota-restricted markets, such as the US, EU and Canada, have gone up by 13.5 %. The report said India’s exports dropped by 22 % of these items to markets in the West, South, South East and East Asia. Asia had accounted for 23 % of India’s cotton textile exports last year. Exports of the African countries registered a decline of 16 % and that of Russia and Eastern
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| Europe went down by 40 %. Countries not restricted by quotas such as Switzerland and Australia reported large declines, except Latin America, which reported an increase, the report added.
The report states the sector is likely to show faster demand growth than the recent past as the deregulation of quotas in the global market boosts Indian textile and clothing exports. However, with significant capacity being commissioned, the polyester industry in India is likely to witness over-capacity over the short to medium term unless the exports of textile and clothing increase significantly. The continuing global over-capacity situation is likely to exacerbate the situation further, the report concluded. 
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