• CCI AD FROM 5th April 2021

Latin America(LAC)

LATIN AMERICA (LAC) EMERGING REGION FOR EXPORTS OF INDIAN MMF TEXTILES

The Latin American region comprises 44 South American, Central American and Caribbean countries. This region accounts for about 5% of global trade. However, currently the region is not a significant trading partner of India. Latin America accounts for 2.88 % in India’s global exports and 1.69% of India’s global imports. Indian MMF textiles exports to the LAC region have risen from US$ 369.85 million in 2009-10 to US$ 711.51 million in 2013-14, registering a growth of around 92.37% over the past five years.

Table I - Growth of Man-made Fibre (MMF) Textile Exports & share of MMF Textile exports to  LAC region in India’s global exports

Value in US$ Mn

Year

Exports to LAC

% Growth

India’s Total Exports of MMF Textiles

% Share

2009-10

369.85

31.96

4160.47

8.89

2010-11

612.57

65.63

5048.29

12.13

2011-12

685.27

11.87

5921.59

11.57

2012-13

651.99

-4.86

5249.29

12.42

2013-14

711.51

9.13

6160.48

11.55

Source: DGCI&S

The share of exports of Indian MMF Textiles to Latin America has increased from 9% in 2009-10 to 12% in 2013-14. 

Table II

India’s MMF Textile Exports to Major Countries in LAC during 2013-14

Value in US$ Mn

Sl No.

Country

2013-14

2012-13

Net Change

% Growth

1

Brazil

310.00

284.31

25.69

9.04

2

Argentina

81.29

54.72

26.57

-4.44

3

Mexico

80.40

86.57

-6.17

-7.13

4

Peru

65.00

62.03

2.97

-6.5

5

Colombia

53.00

55.08

-2.08

-9.64

6

Chile

30.14

35.76

-5.62

-15.72

7

Ecuador

14.17

9.10

5.07

44.73

8

Panama Rep.

12.62

12.46

0.16

1.28

9

El Salvador

10.22

5.50

4.72

13.09

10

Honduras

5.14

7.15

-2.01

-43.12

11

Paraguay

2.13

1.16

0.97

-14.66

12

Trinidad & Tobago

2.02

1.63

0.39

23.93

13

Nicaragua

0.82

0.62

0.20

32.26

14

Barbados

0.10

0.05

0.05

100

 

Export of Indian MMF Textile are mainly directed to  14 markets in the Latin American & Caribbean (LAC) region which account for over 90% of India’s total exports of MMF textiles to this region.

Table III

India’s Share in Imports of Major Countries in LAC
                                                                               Value in US$ Mn

Country

Global Import of  MMF
Textiles during 2013

Import of MMF Textiles from
India during 2013

India’s % Share

Argentina

1356.00

81.29

5.99

Barbados

0.75

0.10

13.33

Brazil

4020.00

310.00

7.71

Chile

715.00

30.14

4.22

Colombia

936.00

53.00

5.66

Ecuador

386.00

14.17

3.67

El Salvador

828.00

10.22

1.23

Honduras

38.00

5.14

13.53

Mexico

4802.00

80.40

1.67

Nicaragua

24.00

0.82

3.42

Panama Rep.

216.00

12.62

5.84

Paraguay

163.00

2.13

1.31

Peru

626.00

65.00

10.38

Trinidad & Tobago

34.00

2.02

5.94

Source: UN COMTRADE statistics.

As can be seen from the Table III above, Mexico, Brazil and Argentina have significant market potential for MMF textile imports where India’s share  is only 1.67%, 7.71% and 5.99% respectively, which suggests that there is tremendous scope for enhancing India’s MMF textile exports to these countries. 

The top three leading markets are Mexico, Brazil and Argentina

MEXICO

During 2013 Mexico imported US$ 5 billion of Man-made fibre textiles from the world. However, import of man-made fibre textile rom India was only US$ 80 million accounting for 2% in total import of MMF textiles by Mexico in 2013.  The product share in the export basket of Indian MMF textiles to Mexico was Fabrics 32% (US$ 25.82 Mn), Made-ups 8% (US$ 6.68 Mn) , Yarn 48% (US$ 38.63 Mn) and fibre 12% (US$ 9.26 Mn).

Main MMF textile items imported by Mexico include Polyester and blended Fabrics, Polyester Yarn, Polyester, Polyester Cotton Yarn, Shawls/scarves, Muffler, etc.

The major countries supplying MMF textiles to Mexico are USA, China, India, Korea Rep., Italy, Spain, etc.

BRAZIL

During 2013, Brazil imported US$ 4 billion of Man-made fibre textiles. However, import of man-made fibre textile from India was only US$ 306 million accounting for 9% in total imports of MMF textiles by Brazil in 2013.  The product share by category in the export basket of Indian MMF textiles to Brazil was as follows: Fabrics 4% (US$ 11.68 Mn), Made-ups 4% (US$ 13.88 Mn) , Yarn 88% (US$ 285.34 Mn) and fibre 4% (US$ 13.98 Mn.

The main MMF textile items imported by Brazil include Synthetic Fabrics, Polyester Filament fabrics, Polyester Viscose fabrics, Texturised Yarn, Oriented Yarn, Polyester Viscose Yarn, Shawls/ scarves, Muffler, etc.

The major countries which supply MMF textiles to Brazil are China, India, Korea Rep., Argentina, Indonesia, USA, etc.

ARGENTINA

During 2013, Argentina imported nearly US$ 1.5 billion of Man-made fibre textiles. However, imports of man-made fibre textile from India was only US$ 81 million accounting for 6% in total import of MMF textiles by Argentina in 2013. The product share by category in the export basket of Indian MMF textiles to Brazil was as follows: Fabrics 5% (US$ 3.27 Mn), Made-ups 5% (US$ 1.99 Mn) , Yarn 80% (US$ 41.77 Mn) and fibre 10% (US$ 5.26 Mn).

The main MMF textile items imported by Argentina include Polyester Viscose Fabrics, Polyester Cotton fabrics, Synthetic Cotton fabrics, Acetate Filament Yarn, Viscose Wool Yarn, Polyester Cotton Yarn, Shawls/scarves, Muffler, etc.

The major countries, which supply MMF textiles to Argentina, are China, Brazil, India, Korea Rep., Indonesia etc.

CONCLUSION

India’s MMF textile exports to the Latin American countries have grown at a rapid pace during last decade. However, exports to some of the markets have witnessing declined recently. For instance, Honduras (-43.12%), Chile (-15.72%), Paraguay (-14.66%), Colombia (-9.64%), Mexico (-7.13%), Peru (-6.5%) and Argentina (-4.44%) during 2013-14, when compared with the exports during 2013-14.  The Council is constantly making efforts to establish base in these far flung markets and increase India’s market share.  Council had organized exhibition in Argentina, Brazil, Mexico, Colombia and Chile which have yield encouraging results.  It is also planning to hold a mega promotional programme in Medellin and Bogotá, Colombia during 2014-15.  All the members should take part in the Event in a big way and derive maximum benefit.

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