Indian textile industry hopes to double exports

Monday, 01 March 2004, 20:30 IST
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NEW DELHI: India's textile industry hopes to double its export growth in the quota-free regime from 2005, when global trade will begin to be driven by competition. "The quota-free regime will open up greater opportunity for the Indian textile industry," said textile secretary S.B. Mohapatra while interacting with national and foreign media at the inauguration of the annual Tex-Styles India show here that started Sunday. India is expecting to clock over 10 percent growth in the export of textiles and garments in 2003-04, with the exports expected to cross $13.5 billion from $11 billion in the previous year, said textiles commissioner Subodh Kumar. "Indian textile manufacturers are bullish about doubling their growth post lifting of quota regime to clock an annual 20-25 percent growth. They are confident of scaling $50 billion exports by 2010", said Kumar. Commerce secretary Dipak Chatterjee, however, expressed reservations about the quota-free regime. "We are not too sure of the post-quota regime as there are apprehensions that the developed nations may use anti-dumping and other means to curb our exports. We have been victims of such investigations in the past, the most recent being the case of shrimps by the US," said Chatterjee. "We are keeping our fingers crossed that such restrictive steps will not be used (by developed nations)." Around 315 exhibitors, including 20 from overseas, are participating in the five-day show, with the state-owned India Trade Promotion Organisation (ITPO) confident of more overseas buyers visiting the show. Open only for business visitors, the 10th Tex-Styles show has a wide range of products and textiles on display, mostly with an eye on the foreign market. With several international buyers like Wal-Mart and J.C. Penny stepping up sourcing from India and entering into long-term contracts, Kumar said major Indian companies are stepping up plans for investment and expansion to take advantage of the new emerging opportunities. "Since 2000, textile units have invested around $2 billion to improve facilities and for modernisation. Over the next 10 years we expect another $10 billion investment, particularly for weaving and processing," said Mohapatra. "If the response is good, the investment may happen sooner." With the government removing disparity in the tax structure between small and large textile units, Mohapatra said increasing investment was flowing into the sector. In addition to 10 apparel parks being set up, six clusters of shuttle-less weaving and processing parks are also being readied over 50-100 acres each, with the government offering several incentives. The inability of most Indian units to undertake large orders, particularly for garments and made-ups, has been working to the advantage of China and other competitors. The emergence of such clusters with linking of units is expected to help India become more competitive.
Source: IANS