Future scope for exports of garments from India

Future scope for exports of garments from India to UKIn interpreting the globally competitive clothing industry specifically in the post-regime of Multi-Fiber Agreement, the Government of India has been concentrating on 3 areas- modernization through technological up-gradation, stable policy environment and global brands building for Indian clothes. Conditions of demand of importing countries have also affected the exports of clothes from India in addition to rupee appreciation. The Government of India announced a set of measures to enable the exporters of clothing to tide over the difficulties. For making the Indian clothing industry globally rivalry to others there is required to denote upon the improvements of technology, export diversification and better product designing (Rao Y N, 1994; Koshy D O, 1997).

Garment exports in India

In accordance with the Multi-Fiber Agreement to be phased out in clothing industry trade has to be done over a period of 10 years. Therefore the agreement to phase out Multi-Fiber Agreement over a period of 10 years may not prove outright beneficial to India. India clothing industry may utilize the period of transition in modernizing its technology and upgrading the quality of its products. Nonetheless, Indian textile and clothing industry may still face a dark future due to competitive advantage in the global market (Mohan R and Chatterjee S, 1993).

Despite significant advantages, the Indian clothing industry faces considerable constraints in reaching its potential. India has rival benefits stemming from its big and similarly less labour cost a big domestic fabrics supply and the ability of the industry to manufacture a vast range of blazers. India has diverse and strong raw materials for manufacturing artificial and natural fibres. Future India has a large capacity in spinning and clothes and the clothing industry of India spans the entire supply chain.  The below tables shows the Major exports of Readymade garments from India:

Market Export % share in total exports
USA (Q) 11443 29.46
Germany (Q) 4629 11.9
UK (Q) 3568 9.19
France (Q) 2463 6.34
Benelux (Q) 1798 4.63

Major importers of readymade garments from India

Source: Vasudeva P K (2000), India and World Trade Organization: planning and development, APH Publishing, New Delhi

Clothing industry in India

The clothing industry in India can pat itself justifiably on its back for its achievements in a short life cycle. From few numbers of small units scattered for 2 decades back, now there are thousands of units, medium, small and big sophisticated and traditional. The output quality has improved tremendously with the design and fashion contents having improved over long years. The growth in exports in quantity and value terms can be outstanding and has outrun the whole growth of Indian exports (Mote V, 2000; Mishra V, 1997). The market had diversified blazer products and hence major markets are spread in India all over the globe. It is not nearly quota markets that during 1994 the quota countries account for 75 percent of the total exports in value which the balance 25 percent is going to non-quota countries.

References

  • Rao Y N (1994), Finance of Cotton Textile Industry in India, Ashish Publishing, New Delhi.
  • Koshy D O (1997), Garments Exports: Winning Strategies, Prentice Hall, New Delhi.
  • Mohan R and Chatterjee S (1993), India’s Garment Exports, Economic and Political Weekly, Pune.
  • Mishra V (1997), India’s Export Performance, SAGE publications, New Delhi.

Abhinash Jena

Partner at Project Guru
Abhinash has worked in sales, branding, and marketing functions for GPS companies including MapmyIndia Navigators (www.MapmyIndia.com). In addition to writing for Knowledge Tank articles, he also writes the expert's advice for Thesis & Dissertations and Power Designs.

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