New Delhi [India]November 22, 2012 (ANI): India, with its abundant raw materials, large workforce and ready to take advantage of the global readymade garments market, is well placed.
The exports of Indian readymade clothes are expected to exceed USD 30 billion by 2027. That would mean a 4.6 to 4.9% share in global exports, compared to the current 3%, according to CareEdge. Over the last five years, Indian readymade garment exports stagnated at approximately USD 15-17 Billion.
“India has a very good presence across the cotton textile value chain from fibre to fabric, while it has a limited presence in man-made fibre, which is expected to get a boost by expected FTA with the UK and production-linked incentive scheme. Furthermore, having presence across entire-value chain reduces transportation costs and lead time, thereby providing a cost-effective solution to the customers,” said Krunal Modi, Associate Director – Corporate Ratings in the report.
With free-trade agreements, it said India’s share in UAE and Australian markets are expected to increase and the trade pact with the UK would be a game changer as it will create a level playing field.
“Currently, India has a market share of 4-5 per cent in EU and UK as Bangladesh, Vietnam and Pakistan have a tariff advantage of around 10 per cent vis-a-vis India in some of these markets,” the report said.
Due to its declining competitiveness and the ‘China Plus One’ sourcing strategy adopted by global brands and retailers, China is expected to continue losing its share in the global markets, which could be beneficial for India.
Countries such as China, Bangladesh, Vietnam, Germany, Italy, Turkey, Spain and India dominate the export market, with China accounting for a lion’s share of 33 per cent of the total exports backed by high labour productivity along with economies of scale. (ANI)
This report was generated automatically from ANI news. ThePrint does not take responsibility for its contents.