Textiles sector likely to attain $ 70bn exports by 2014 - EXIM study

28 May '05

4 min read

Exim Bank's latest study titled 'Textile Exports: Post MFA Scenario - Opportunities and Challenges' observed that the Indian textile sector has potential to reach an export value of US $ 70 billion by 2014. The study observed that the Multi-Fibre Arrangement (MFA) restricted trade in textiles and clothing through a system of quotas. The post quota regime, thus, would provide opportunities and challenges for Indian textile and clothing industry. The study noted that the clothing sector would offer higher gains than the textile sector, in the post MFA regime. Further, the study also observed that China, India, Pakistan, Taiwan, Hong Kong, Brazil, Indonesia, Turkey and Egypt would emerge as winners in the post quota regime. The determinants of increase / decrease in market share in the long term, however, would depend upon the cost, quality and timely delivery of these players. The study estimated that in the short term (1-2 years) it would be the apparel market in USA and EU, which would be providing opportunities to developing countries like India. Labour intensity of garment manufacturing would enhance potential gains for developing countries like India. In the long term, (by 2014), even the textile sector would offer opportunities, as many high cost countries would lose their competitive position in the open trading environment. Besides, the study also observes that in the long term, the intra-EU trade would be reduced providing additional opportunities for developing cou

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