COIMBATORE: Despite the effect of appreciating Rupee and impending threats from China with its export restrictions ending by 2007, Indian textiles industry remains undeterred as international brands and buyers look at India to broaden their sourcing base.
According to a CII-Ernst & Young report, India stands to benefit immensely from this expected growth as international brands and buyers like Wal-Mart look to low-cost production countries to broaden their sourcing base.
Even as the Sino-EU trade agreement comes to an end by the end of 2007 and China could be in a stronger position to penetrate the European markets, the report said India has several advantages in terms of supply of cotton and man-made fibre, well-established production base, skilled labour and good design capabilities.
It has identified sourcing as a huge opportunity for the Indian industry. The expected size of the sourcing market in 2008 is $22-25 billion and is estimated to grow to $35-37 billion in 2011.
Textiles and apparel is a $49 billion industry in India, of which the domestic market’s share is 61%. Most Indian textile companies are expanding capacities across the value chain in areas of design, yarn, fabric, garments and retail forays. Besides this, incentives to exporters and entry of foreign retailers into the Indian market would act as a fillip to the Indian textile industry, the report said.
According to a CII-Ernst & Young report, India stands to benefit immensely from this expected growth as international brands and buyers like Wal-Mart look to low-cost production countries to broaden their sourcing base.
Even as the Sino-EU trade agreement comes to an end by the end of 2007 and China could be in a stronger position to penetrate the European markets, the report said India has several advantages in terms of supply of cotton and man-made fibre, well-established production base, skilled labour and good design capabilities.
It has identified sourcing as a huge opportunity for the Indian industry. The expected size of the sourcing market in 2008 is $22-25 billion and is estimated to grow to $35-37 billion in 2011.
Textiles and apparel is a $49 billion industry in India, of which the domestic market’s share is 61%. Most Indian textile companies are expanding capacities across the value chain in areas of design, yarn, fabric, garments and retail forays. Besides this, incentives to exporters and entry of foreign retailers into the Indian market would act as a fillip to the Indian textile industry, the report said.
