India’s textile exports are expected to grow to $18 billion by the end of 2015 and $20 billion by 2016, says a Investment Information and Credit Rating Agency (ICRA) report on global textile positioning of Indian and other textile giants of the world. However, the depreciated rupee is unlikely to remain as a sustainable advantage in the long term as India’s market share in world trade has not significantly changed during the last three years. India’s share in global trade was four per cent last year and has increased by only three per cent in 2004. Reasons for the slow growth include: fragmented nature of weaving, processing and garmenting industries.
Reliance on imported machinery across the textile chain limits India’s exports growth. TUFS benefits have been availed of mainly by the spinning sector, limiting the participation of weaving, processing and garmenting sectors. So, while exports have taken a back seat, domestic textile industry has been growing at a mean annual growth rate of 10 per cent over the last five years.
India is among the largest producers of cotton and manmade fiber, equipped with the second largest capacity for spinning and weaving. Meanwhile China remains the largest exporter as a result of its huge global capacities across the textile value chain.