The textile and
The Indian
The catalysts, which have placed the industry on thistrajectory of exponential growth are a buoyant domestic economy, a substantialincrease in cotton production, the conducive policy environment provided by the Government, and the expiration of the Multi Fibre Agreement (MFA) on 31 December,2004 and implementation of Agreement on Textiles and Clothing (ATC).
The buoyant Indian economy, growing at the rate of 8percent, has resulted in higher disposable income levels. The disposable incomeof Indian consumers has increased steadily. The proportion of the majorconsuming class (population that has an annual income of more than US$ 2000)has risen from 20 percent in 1995-96 to 28 percent in 2001-02. This is expectedto move up to 35 percent by 2005-06, and to 48 percent by 2009-10. Thistranslates into a growth of 9.3 percent over the next 8 years, and will resultin higher spending capacity, manifesting itself in the greater consumption oftextiles and apparels.
The Indian textile and apparels industry consumes a diverserange of fibres and yarn, but is predominantly cotton based. A significantincrease in cotton production during the last two: three years has increasedthe availability of
Not only this, the government, of late has been giving a lotof attention to strengthen infrastructure like roads, ports, power, water,telecommunications, etc. to supplement the efforts put in by the Indian textileand apparels industry to become a surrise industry.
To provide Indian consumers with world-class quality intextile and apparels and
Quotas or quantitative restrictions imposed by developednations, which restrained the export growth of the Indian textiles and apparelsindustry for over four decades, were eliminated with effect from 01 January2005. This has unshackled Indian textiles and apparels exports, and this isevident from the growth registered in the quota markets. Apparels exports tothe USA during 2005 and 2006 increased by 34.2 and 7.08 percent respectively,while textiles exports during 2006 to the US showed and impressive 12.42 percent growth. Similarly, in
If we look at the US and EU import statistics for apparelsalone, we find that these major global players are not inclined to sourceexclusively from
The Indian government has always and is continuing toconsider the role of textiles and apparels manufacturing units in India as verycritical in achieving the objectives of faster and more inclusive growth, andhas laid emphasis on policies aimed at creating an environment in which
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