Textile exports to rise from around US$ 17bn last year
03 Jul '06
4 min read
CRISIL Infrastructure Advisory estimates that India's textile exports will increase from around USD 17 billion last year (FY 2006) to around USD 40 billion by FY 2011 (CY 2010, 18.7 percent CAGR). The last one year of quota-free trade has seen India become the third largest supplier of textile and clothing to the USA from being the fourth largest in 2005, while in the extra - EU-25 market, India has retained its third position behind Turkey.
The trade competitiveness factors of multi fibre base, value chain integration and low labour cost provide a globally competitive cost structure for operations, driving relocation of international industry.
Key trends to watch for, according to CRISIL Infrastructure Advisory are the growing share of organised retail and media exposure driving consumerism that can result in a 10-15 percent growth per annum in the branded goods segment alone, boosting in particular the clothing industry as well as the significant increase expected in India's exports.
Growth opportunities exist in the equipment industry, where nearly 70 percent of machinery & accessory requirements are currently met through imports as per a recent CRISIL Infrastructure Advisory estimate, and the area of Technical textiles in which the global market opportunity is over USD 107 billion in 2005 and expected to grow at 4 percent per annum over the next five years. India is currently a net importer of items like industrial fabrics, waddings,felts, non-wovens, special fabrics, high tenacity yarn, etc. thereby presenting an opportunity to foreign firms with technological prowess to set-up base in India for such products.
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