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Delhi-NCR region can double clothing exports in 5 years
Jun '10
Delhi's apparel export industry holds the potential to grow to Rs. 20,000 crores by 2015, according to management consulting firm Third Eyesight, which carried out a study commissioned by the German technical cooperation (GTZ) under MSME Financing and Development Project.

This study evaluates opportunities in existing markets and products, and has also identified new areas for the industry based in the National Capital Region, including locations in Delhi, Uttar Pradesh, Haryana and Rajasthan.

Although the current exports from the region are a respectable Rs. 12,000 crores, the study suggests that double that amount of additional growth opportunity (of over Rs. 25,000 crores) is being missed by the Delhi NCR apparel cluster in terms of underweighted markets and products.

Delhi has been a keystone to the growth of apparel and textile exports from India, and accounts for 25% of the country's current exports. In fact, even when compared to the world's top apparel exporting countries, Delhi NCR falls within the Top-20 list, ahead of countries such as El Salvador, South Korea, Philippines, Peru and Egypt.

The Delhi industry provides buyers with unique value in terms of product development and design strengths, and a tremendously flexible supply base. According to the Director (Merchandising) of one of the largest global retailers sourcing from India, “Delhi scores high on responsiveness, and is more enterprising. It has the capability to handle extraordinary fabrics and is strong in interpretations of artwork.”

Currently, India's textile exports are weighted in favour of raw materials and intermediate products, which is a major concern from the long-term competitiveness perspective. Delhi-NCR apparel cluster can play a significant role in capturing additional value within the country.

According to GTZ, the study has recommended a growth opportunity roadmap for the stakeholders of the Delhi NCR apparel cluster. The study calls upon the Delhi NCR apparel cluster to re-align its emphasis on products and market destinations to access greater market share.

The detailed findings of the study will be shared on 3 July 2010 through a seminar titled “Discovering Growth”.

Third Eyesight is a consulting firm focused on lifestyle products, consumer goods and retail. Third Eyesight's clients include market-leaders and brand-leaders with annual sales of over US$ 80 billion, with whom it works in a variety of strategic and operational areas including market entry and new business start up, product development, sourcing and supply chain, and corporate / M&A strategy.

About GTZ:
The Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) is a German Government owned organization, working worldwide in the field of international cooperation for sustainable development.

India has been a priority partner country of German development cooperation for more than 50 years, and through this period GTZ has been active here on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).

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