The exports of textile and clothing from India increased by 8.21 percent to $ 9.3 billion in April-November 2005, said the Economic Survey, presented in Parliament a day before budget.

In the run up to the phasing out of quotas, studies had listed India and China as the main beneficiaries of the new global order in textile trade.

China, however, has been more aggressive. While India's exports of textile and clothing to the US increased by 25 percent, China's exports went up by 58 percent.

The difference was more evident in European Union. While India's exports were up 10.5 percent, China increased its exports by 80 percent.

The US data for the first six months of 2005 shows that exports of textile and clothing of liberalised product lines from China grew by 242 percent.

The massive increase in exports that was envisaged after phasing of quotas was expected to drive the Indian textile sector.

The sector accounts for 20 percent of the country's industrial output and 12-16 percent of total exports.

The overall growth in the sector, however, has been moderate.

"Moderate turnaround in the performance in the textile sector has become visible in increased production. Budgetary concessions, rationalisation of duty structure and assistance under Technology Upgradation Fund Scheme have started paying dividend," the Economic Survey presented in Parliament on Monday said.

It said the production of fabrics touched a peak of 45,378 million square metres in 2004-05 and in this fiscal till November the production grew nine per cent.

The highest increase of 20.32 percent was registered in exports of coir and coir products followed by 18.93 percent by readymade garments.

The export of manmade textiles declined by 12.83 percent to $ 1.1 billion while wool and woollen textiles were down 1.78 percent to $ 289 million.