Due to recession in Chinese garment industry, the Indian garment industry is expected to grow about 10% in the fiscal year 2008-09.
As per CMAI (Clothing Manufacturers Association of India) and AAF (Asian Apparel Federation), the garment industry of India is targeting a 10% growth in 2008-09, as The Economic Times reported.
During April to May 2008, garment production increased in the country and Indian garment industry regained its confidence in the international market as it maintained a 15% growth rate in 2007-08. During 2007-08, the garment exports reached US$ 9.1 Billion, a drop of about 10% in rupee terms, but a 2% rise in dollar terms. Currently, the total garment industry of India stands at $15 Billion.
Recession in the garment industry of China, the leader in textile business worldwide, is recognized as the main reason for growth in garment industry of India. Soaring prices of labor, garments, fabrics and yarn in China lead to decline in its garment industry and encouraged demand for low-priced Indian garments. Also, reliance of global clothing companies on Asian countries like India and China, and export prices that stand little higher than domestic prices are also fuelling growth in the garment industry of India.
Moreover, most of the country’s garments are exported to EU countries and the US. Thus, the rising prices of the US dollar are encouraging more and more Indian players to forge business ties with the US, resulting in the further growth of the industry.
Further, introduction of automation in garment industry in near future can help in decreasing the total cost of production by about 10 to 15% with nearly 5 to 7% savings on fabrics only. This is likely to act as a key growth driver for the country’s garment industry in future.
A Research Analyst RNCOS said, “The rapidly growing garment industry of India is bringing huge amount of foreign currency to the country, making the role of the industry more vital in the Indian economy. Moreover, the industry chips in significantly to exports and is also luring international players to the country.”
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