The 2013 data from UN Comtrade confirmed that India is now the second largest textile exporter in the world. India surged ahead of countries like Italy, Bangladesh and Germany to achieve this position. The country has a 5% share of the global exports worth $770 billion. The reports indicated that this growth in Indian textile export can be attributed to the growing demand for clothing and apparels in the markets of US and European Union. China however retains the number 1 position in textile exports.
Indian textile sector has been able to achieve this growth irrespective of the sluggishness in the economy mainly due to the quality as well as of the effective marketing strategies deployed to reach these global markets. The previous UPA government policies encouraging market and product diversification also helped firms to enter new markets.
India has moved from 10 to 8th position in apparel exporting too. This was achieved irrespective of the challenge Indian apparel manufacturers face in importing costly fabrics. There is a strong demand for some duty relief on this imported fabrics which can further boost the apparel industry in India. The increasing credit interest rate is another challenge for the Indian textile industry. Once these challenges are resolved, the growth potential of this industry looks more promising. Indian textile sector has improved on productivity due to technology advancement and also in improving the skills of its resources.
