Textiles sector likely to attain $ 70bn exports by 2014 - EXIM study
28 May '05
4 min read
countries like India.
The study estimates that India could increase its share in textiles market of USA and EU from the present level of 8.4% (US $ 1.5 billion) and 3.2% (US $ 1.9 billion), respectively, to a share of 13.5% (US $ 5 billion) and 8% (US $ 8 billion), respectively, by 2014.
Similarly, India could increase its share in garments market of USA and EU from the present level of 3.2% (US $ 2.3 billion) and 3% (US $ 3 billion), respectively, to a share of 8% each (US $ 13 billion and US $ 16 billion, respectively), by 2014. Thus, USA and EU alone would offer a total market of US $ 42 billion, for Indian textiles and garments by 2014, the study delineated.
The study reviewed Indian textiles and garments industry and observed that the productivity of cotton as measured by yield, the capacity and technology infusion in the spinning and weaving sector are relatively low.
Though there is prevalence of low cost labour, the cost of production is increased due to relatively high interest cost and power tariff. Besides, the supply chain in this industry is not only highly fragmented but is beset with bottlenecks that could very well slow down the growth of this sector.
The study recommends that India should sharpen its competitive edge by lowering the cost of operations through efficient use of production inputs. There is also need for integration of manufacturing process to achieve operating leverage and demonstrating high bargaining power.
This would call for turning
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