ASSOCHAM says Yuan revaluation to help India attain $ 25bn textile exports

23 Jul '05

3 min read

The revaluation of Yuan and safeguards adopted by US & EU against China would help India to increase its share in World textile exports to 5 per cent by 2007 from the current 3.9 per cent, announced ASSOCHAM on its website.

India would be able to achieve $ 25 billion textiles exports in the projected $ 500 billion World textile exports by 2007.

The Post Quota Regime analysis released by the ASSOCHAM President, Mr. Mahendra K. Sanghi today says “the unprecedented surge in textile exports orders for winter 2005 from EU & US and the revaluation of Yuan will enable India to register excellent export growth in the textiles sector this year”.

However, Mr. Sanghi said, Textile sector requires huge investments to remain competitive in the quota free world. The players in this sector need to expand and integrate vertically to achieve scale operations and introduce new technologies. It is estimated that the industry would require US $ 15 billion new capital investment in the next five years to stage the potential export opportunities of US $ 50 billion by 2010 by this India will be able to achieve 9 per cent market share in total World textile exports.

He has, therefore, strongly recommended that we should adopt aggressive strategy for investments, raw material sourcing, production, research & development, marketing and supplies for the textile sector. Large-scale economies in production, quality maintenance and assurance of international standards,product innovation would strengthen India to gain in international markets.

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