Industry & Economy
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Textiles
`Textile industry to gain more sans restrictions'
Our Bureau
Mumbai
,
Feb. 3
THE Indian textile industry is poised to reap the benefits of a market without barriers post 2005, while China may continue to face restrictions in several trade segments up to 2008.
According to Mr Thomas G. Travis, Managing Partner, Sandler, Travis & Rosenberg, a garment consultancy firm in the US, factors that would significantly impact sourcing in 2005 are the World Trade Organisation membership status; tariff preferences and the Free Trade Agreement; quality and price of products; timely deliveries; enforcement efforts of the US Customs; ethical sourcing concerns, especially with regard to trade and labour and currency fluctuation linkages. Mr Travis said that most buyers, especially the large ones, had to reassess their sourcing mix and with the possibility of some countries still being saddled with quotas and restrictions, buyers were unwilling to source all their requirements from one source and were hoping to spread the `risk'.
For countries such as India, this throws up opportunities.
According to Mr Travis, China's business rose phenomenally following the removal of restrictions. Interestingly, its penetration into the US market jumped significantly. This is true of products such as athletic footwear and toys where there are no quota restrictions on Chinese products.
He added that the country stood to gain the most, because the US favoured business partners. For example, Mexico found it difficult to compete with India as yarns were cheaper, cost of production was lower and the infrastructure was developed.
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