Infrastructure and power sector reforms should be undertaken at a high speed to facilitate the smooth functioning of the industry. India has high energy and capital costs, multiple taxation and low productivity, all of which add to production costs. As a result, textile and apparel products from India are less competitive than those of China and other developing countries in the international market.
Close attention need to be paid to the composition, volume and value of products as well as competitive strengths vis-à-vis countries like China, Sri Lanka, Bangladesh and Pakistan.
Despite India's competitive advantage, a number of constraints continue to restrict the growth of Indian textile markets abroad such as more than 60% of the fabric production in the decentralised power loom sector, which is unable to compete with the cheaper and flawless fabric from state of the art plants of China or Taiwan.
The Associated Chambers of Commerce and Industry of India
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