India will be the fastest growing apparel market in eight years, expanding at a CAGR of 11.8 per cent. The export market too will be favorable for India. Developed markets will continue to provide huge opportunity to textile exporters with their large size despite moderate growth in demand. Apart from the US and Europe, China too will become a market for Indian exporters as Chinese textiles manufacturers have lost the co¬m¬petitive advantages of lo¬wer cost of production in the last few years.
China’s competitiveness in cotton texti¬les is dropping rapidly while India’s competitiveness is improving steadily. India’s apparel exports with an expected CAGR of 21 per cent are likely to play a major role in deriving gro¬w¬th in total textile exports. The Rs 6,000 crores package to increase employment and investment in the textile and apparel sector may boost competitiveness of Indian ap¬parels in the world.
Growing urbanisation and rising per capita income in India and China would result in increased purchasing power and change in lifest¬y¬le. China and India will be key markets for the growth of textile and apparel. However, India will have to add¬r¬ess challenges to ach¬ieve a higher market share. India does not have duty free access to the European Union.