Share this article

Asian nations are assisting struggling textile and apparel sectors as their wider economies rebound, says a recent report.

Asia’s economic growth is expected to rebound 7.5% in 2010, up from last year’s 5.2%.

However, in light of lagging global demand some Asian textiles and apparel exporting nations are assisting their industries to cope, according to the Asian Development Bank’s (ADB) Outlook 2010 report.

In India, the region’s second largest emerging economy, where export growth turned positive in November after 13 months of year-on-year declines, the government, says the report: “Will continue with the 2% interest subsidy on bank loans to certain sectors that are labour intensive such as textiles, leather, handicrafts, cotton yarn, …which are particularly hard hit by the fall in global demand.”

In neighbouring Pakistan, the report says that while manufacturing has picked up in other industrial segments, textiles production “has continued to contract on account of lower cotton availability, electricity and gas shortages, and poorer relative product competitiveness in international markets.”

The ADB says electricity subsidies, which remained high in fiscal year 2009, and a burden on Pakistan’s budget, will continue in FY 2010.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Similarly, it says Cambodia has ushered in support measures to shore up its apparel sector, which in 2009 witnessed the value of its exports to the US contract by 20.9% because of lower demand and an erosion in market share to competitors such as Bangladesh .

The ADB says preliminary data show a 17% fall in Cambodia’s merchandise exports in 2009, mostly stemming from the fall in apparel exports to the US.

Measures introduced to boost industrial output, which fell 13% last year, have included temporary tax relief for apparel industries, and $10m for re-training laid-off Cambodian apparel workers.

Overall, the ADB forecasts the value of exports from the region to expand on average by 14.4%, up on after last year’s 16.2% decline, with Indian shipments edging upwards by 16%, China’s by 13.3%, and those of heavily apparel dependent exporters Bangladesh by 5%, a deceleration from last year’s 10.1% expansion, and Cambodia by 5%.

Subscribe to Just Style

Join over 70,000 apparel industry professionals by unlocking full access for just £1 (plus VAT if applicable)

Already a Member? Login here

Just Style membership gives you:

  • Unlimited access to Just Style content including in-depth analysis, exclusive blogs, industry executive interviews and management briefings
  • Unbeatable market coverage from apparel sourcing and supply chain issues, to emerging markets and manufacturing
  • Unrivalled apparel industry comment from journalists including Leonie Barrie, Michelle Russell, Hannah Abdulla and Beth Wright.
Want multi-user access? Explore our multi-user & corporate memberships

70% of the apparel and textile companies in the Forbes Global 2000 use Just Style

Find out more