Textile industry in India is moving slowly but steadily even after many constraints such as volatile cotton prices, fluctuation in yarn prices and worsening global economic situation. This is only because of the strong determination of the entrepreneurs engaged in the business.
My observation over the years about textile industry in India is that entrepreneurs will talk about unviability/impracticality of the units; on the other hand they will invest and expand their capacities. This shows that the industry is going strong even after all the difficulties.
If you look around, we find that the per capita consumption is increasing because of quick fashion changes worldwide. India and China, which together accounts for around 37% of the population worldwide, are not the exceptions to this fashion cycle.
If we analyze the global textile trade scenario, we find that the trade from developed countries like US, Europe and Japan is shifting to Asian countries and predominately captured by China. India's trade in textiles is about 20% of China's trade.
USA, Europe, Turkey and Mexico are major global importers of textiles. China is also importing textiles for conversion into value added products whereas India is exporting textiles to countries like Vietnam, Bangladesh, Sri Lanka and losing its cream of value addition to these smaller countries.
The author is the President at Suvin Advisors Pvt. Ltd.
The views mentioned here that of author.