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Indian Textile & Apparel Industry to Hit 9% Growth
Nov 18, 2009

The textile and apparel market in India, with an expected 9% growth in coming years, has set its eyes on foreign direct investments, says Technopak Advisors.
 
According to Technopak Advisors, one of the leading management consulting firms of India, the country’s domestic textile & apparel market, despite the recent demand slump, is likely to grow at around 9% in the coming five years, reports Fibre2fashion.
 
The Indian textile and apparel market’s current size is US$ 62 Billion; exports contribute US$ 22 Billion while the domestic market accounts for the remaining US$ 40 Billion. Exports of textile and apparel have recorded a substantial growth rate in the recent years, with a CAGR of 11% from FY 2004-05 to FY 2007-08. Woven apparel constitutes the single leading category, followed by knitted apparel, made-ups and cotton-based textiles.
 
Since 1991, India has had been registering a sustained high GDP growth, which has led to fundamental shift in the economy. As 13 Million people get employment every year, predominantly young consumers and reduced dependency ratio are the prime growth drivers of the industry.
 
The reasons of this vivacious growth are numerous. To begin with, India is bestowed with a comprehensive supply chain, starting from the supply of raw materials to finished goods of superior quality. Secondly, the country also has a vast pool of skilled and cheap labor. The textile industry encompasses such design skills and expert entrepreneurship that are quite tough for competitors to match.
 
The industry aspires to improve foreign direct investments. France, Switzerland and Germany are among the prospective countries that are ideal for making investments in India. The Indian government is now discovering investment opportunities in potential countries such as Japan.
 
In addition to this, encouraged by a growth in August 2009 after nine long months of downturn along with increase in demand from European market, the Indian textile and apparel industry is saying that it is giving a tough fight to its biggest competitor by entering the Chinese market.
 
Though China is renowned for its cheap textile exports worldwide, market experts claim that India is way ahead of China in terms of fashion, designs, creativity and variety of textile.
 
According to a Research Analyst at RNCOS, “In the background of prospective growth in Indian textile industry, intense focus on the domestic market and deep understanding of the market dynamics are a must to tap the complete industry potential.”
 
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