India has to perform better to increase garment export
20 Feb '06
1 min read
Garment exports are likely to cross US $15 billion (Rs650 billion) mark by 2009-2010 at CAGR (Compound Annual Growth Rate) of 18-20 percent, a study revealed.
The study stresses on investment of about Rs340 billion in spinning, weaving, processing and garmenting to build new capacity and modernising of existing ones.
Assuming a debt-equity ratio of 1.5:1, the study estimates equity requirment worth Rs135 billion and debt of Rs205 billion.
India has yet to perform better to increase garment export, which is at present below 50 percent, whereas China has already reached about 65 percent of its total textile exports targets.
In terms of total global apparel market, India has a small share of three percent, whereas China enjoys 30 percent in total share of $295 billion.
The study also indicates that India should not focus on fabric or yarn exports but concentrate on consolidating garment exports.
Study estimates that if the potential export value of yarns and fabrics (at $4.5 billion) gets converted into garments, then it would amount to over US $20 billion.
marketing@alchempro.com
