India's cotton and apparel exports are set to climb by around 10 per cent this year.Higher wages, political instability and concerns about workplace conditions in other markets like Bangladesh are steering international buyers toward Indian exporters.
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.
Aside from stronger global demand, larger domestic cotton supplies will also help India push textile and apparel exports up by about 10 per cent in 2014-15. The main markets for Indian textiles at the moment are the United States and the European Union. Expansion in domestic demand is also likely, with India’s local textiles market expected to grow in the coming years.
But while exports are expected to rise from India, China, with textiles and apparel exports worth 270 billion dollars, around seven times that of India’s receipts, is expected to remain the dominant player.
India’s relatively poor infrastructure, wobbly energy supplies and lack of a business-friendly environment for both foreign and domestic investors are expected to constrain overall export growth over the near to medium term.