The main worries for the Rs 1,30,000 crore Indian textile industry are rising crude oil prices and fierce competition from China in world trade.
On the constraints front, one-third of the survey respondents are of the opinion that inadequate power supply and infrastructure facilities would impede their growth in the current quarter.
An increasing number of firms are now indicating that the greatest source for enhancing their performance will be to enter new markets with existing products. Whereas, developing new products and better pricing capabilities would continue to give them secular growth.
A noticeable change is seen in the export destination as more firms are looking at Europe and USA as well as Middle East as major export destinations.
The man-made fiber industry, in particular, is worried on the crude price front, while cotton textile segment is content with the bumper cotton crop and low fibre prices.
However, the entire textile segment is worried over competition from China, as it has cost advantage over India.
Textile companies want Government policies to be favourable and in line those in the neghbouring textile nations.
''The Government also needs to work on infrastructure, labour and power reforms and friendlier fiscal and export policies to enhance competition,'' says the report.
''With trade barriers removed the textile Ministry has set an ambitious export target of USD 50 billion by 2010. To achieve this, the industry needs an investment of about Rs 1,40,000 crore, a colossal task as current investments are just a trickle of the total requirement.'' About domestic demand, the report says, ''the Indian economy is poised to grow by 6.8-7.0 per cent in 2005-06 over and above the 6.9 per cent growth recorded in 2004-05. With two consecutive years posting generous growth in income levels, it is obvious that domestic demand is likely to expand significantly. However, inflationary trend, may set in led by the high crude oil prices.''
