Mumbai: India’s cotton and apparel exports are set to climb by around 10 per cent this year as higher wages, political instability and concerns about workplace conditions in other producing markets steer international buyers toward Indian exporters, industry officials said.
The rise in textile shipments from India – currently around 4.5 per cent of world trade – may eat into top exporter China’s 36 per cent share of the market and will be a boon for Indian textile merchants keen to exploit rising demand stemming from weak cotton prices and global economic growth.
“My orders have increased by about 20 per cent so far this financial year. It’s a golden period for the Indian textiles industry,” said Vijay Agarwal, chairman of Mumbai-based Creative Group, a leading apparel exporter. Buoyed by fresh export orders, Agarwal is keen to expand his business by investing 2 billion rupees ($32.71 million) in the next year.
The main markets for Indian textiles at the moment are the United States and European Union.
Agarwal and other Indian exporters are anticipating a rise of roughly 5 per cent in global demand for textiles and apparel this year. In addition, India’s textile exporters feel the relatively low labour costs in their country, alongside record domestic cotton production this year, should help them gain market share from other exporters in the region. Read the rest of this entry »