The Hindu Business Line : `India could get significant share of global textile market'

INDIA could acquire a significant share in the international textile market, especially in the US and European markets, according to a recent Assocham study. India's textile exports to the US and Europe have already shown a jump of 23-24 per cent in the post-quota regime, it pointed out.

The textile players in the country are getting huge export orders for 2005-06 winter from the European Union (EU) and the US, especially after the US placed quantitative restrictions on imports from China, according to reports received by the Chamber.

The study said that the revaluation of yuan and the immense pressure being put on China to curtail textile exports would also help the exports from India. Though Chinese clothing has flooded the EU and US markets, China would not be able to achieve a growth of over 10 per cent in its exports for the next 2-3 years, it said.

Though prices of Chinese textile items have fallen by about 20 per cent in the post multi-fibre agreement, China would not be able to expand the exports significantly because of its uncomfortable terms of trade with the EU and the US. Chinese textiles exports are expected to touch $110 billion this fiscal, higher by $10 billion than the $100 billion recorded last year, it said.

The Indian industry would require $15 billion in the next five years to achieve exports of $50 billion by 2010, according to the chamber estimates. Technological upgradation and vertical integration are some of the measures identified by the study to help the Indian industry achieve its export potential.

The industry needs to upgrade its technology to remain competitive in the post quota regime. Since majority of the global customers look for big exporters so that they can place bulk orders, it is suggested that the textile players integrate vertically to achieve scale of operations. This would also bring down the turnaround time.

Moreover, the industry needs to develop better design capabilities and management and negotiating skills. The study also suggested setting up of textile parks for small and medium enterprises in the industry.

It called for reforms that would attract foreign direct investment (FDI) in the industry.

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