The Indian textile and apparel industry is poised to emerge as a sourcing hub for global retailers, given the abundant supply of fibre, well-established production base, and cost competitiveness, according to CII – Ernst and Young Textile and Apparel Report.
The sourcing market is projected to grow to $35-37 billion by 2011 from the current $22-25 billion, the report said.
Identifying sourcing as a huge opportunity for India, the report said phasing out of the Multi-Fibre Agreement triggered growth in the quantum of sourcing of top global retailers for the country.
“India has several advantages in terms of abundant supply of cotton and man-made fibre, well-established production base, cheap and skilled labour, and good design capabilities,” the report asserted.
Besides, government incentives to exporters and entry of foreign retailers into the domestic market will also boost retail sourcing from India.
“These are exciting times for the sector. Globally, there are clear indications that textiles and apparel production is consolidating with production shifting towards Asian countries,” Ranjan Biswas, partner and national leader, E&Y India Retail and Consumer Practice, said.
The report further predicts that the Indian textile and apparel market will grow annually at 6.5 per cent. Exports are also expected to grow annually by 12 per cent with international retailers looking at India as a viable alternative to China for sourcing of apparel.