3. Summary of the Indian Inward Looking View

• Indian Textiles could (potentially) grow from US $ 36 billion to US $ 85 billion over the next 6 years.

• Future prospects for Indian Textiles look good but competition will be fierce.

• Only the Fittest will survive, let alone prosper.

• India Textiles Must improves PRODUCTIVITY across the whole Value-Chain.

• Abolition of quota-free tariff charges in January 2005 will favour Indian Textile imports. But China, and others, will also benefit.

• Given the low productivity of the workforce, Indias strength of (relatively) low labour cost has not been fully exploited.

• Value Addition needs to be a Key Driver for the Indian Textile Industry to achieve its full potential.

• Indian Textiles need to command premium prices; need to target niche products and markets; need to redesign products in higher value-added segments of international business.

• The Dyeing & Finishing sector is critical in these growth drivers, since it holds the key to fabric (and bsequent garment) quality.

• The Processing Sector (Dyeing & Finishing) is currently one of the weakest links of the Value-Chain and must look particularly towards Productivity improvements.

• Over 36% of the total investment which will take place in the Indian Textile Industry over the next 6 years will be in the Dyeing and Finishing sector.

• The need is to create new capacity, and to refresh existing capacity.