Textile ind study blame crude prices, infrastructure
26 Nov '05
1 min read
A study on the Indian textile industry reveals that soaring prices of crude oil and growing dominance of China have seriously afflicted Indian textile sector.
The situation has deterred industry's performance in the current quarter than in the second quarter of 2005.
Apart from crude oil and China, power supply and infrastructure are the two stumbling blocks in the progress route of textile industry in current quarter.
Since China has a cost advantage over India, the increasing competition from China is a major concern for Indian textile industry.
Following the elimination of trade obstacles, Textile Ministry has decided to achieve an export target of $50 billion by 2010. For this, the industry requires an investment of approximately Rs 1,40,000 crore.
The survey also disclosed that many companies could improve their performance by going into new markets apart from developing new products.
Apart from West Asia, Europe and the US are the key export destinations for many firms.
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