2004: India's Garment Industry Is The Key Year

15 days ago, retail giant Wal-Mart rival Targetexport unit is in the process of merging. Apparel
co-chairman of Jaganath in India held a conferenceExport Promotion Council in India, the number of
for global procurement.registered companies of more than 25,000 from last
Wal-Mart's delegation will gradually strengthen in Indiayear fell to 5,000.
purchasing clothing and other products. This showsIndia has been doing a good job in 2004 after fierce
how the world viewed the 2004 Indian apparelcompetition with China to prepare. But China's
industry signs.garment export capacity close to 50 billion U.S. dollars
According to the WTO Multi-Fibre Agreement, fromannually, China's apparel production is much bigger
January 1, 2005, the textile quotas will be lifted, Indiathan India. In a few years ago, the Indian outsourcing
has become an important destination for globalmarket is very fragmented fashion, mainly because
sourcing.of government policies, and in recent years, China
2004 will be India's garment industry the most crucialhas the capacity to add new clothing. China's labor
year in history. Indian apparel industry is acceleratingforce by the advantages of education and training in
to meet the challenges of non-quota regime. If youIndia can not match. At present, China has the
allow the better in 2004, is to improve the prospectsworld's 10 largest market share of the quota
for India's garment exports.countries up 11.3%, while India accounted for only
With the abolition of the quota system, India's3.2%.
apparel exports from the current six billion U.S. dollarsCurrently, India's garment export unit are asking the
in 2010 to grow to 25 billion U.S. dollars.Government to amend the labor law to reduce the
In 2003, India, several major apparel companieshuge import tax differences. With the rupee against
accelerated increase capacity to meet rising demand.the U.S. dollar's value, 4-10 months in 2003, India's
These include Raymond Company, Zodiac company,apparel exports to the United States fell by 11%, fell
Madura Garments and so on. They have done into 1.069 billion U.S. dollars. Exports to the EU increased
South India plans large-scale garment manufacturingby 20%. 4-10 months in 2003, India's quota to all
facility. The plant will be commissioned before thecountries, garment exports reached 2.417 billion U.S.
end of this year. This trend will become moredollars, an increase of 3 percent.
apparent in 2004, because many small and mediumAfter a long slump, the luck of clothing company in
enterprises seeking expansion of private capital are2003, improved operating performance. In 2003, as a
inhaled. Southern part of India's textile companiesgood external environment, organized retail
have completed plans to enter the apparel industry.expansion, India's apparel sales were up 25% -30%.
From the Indian garment industry sources said theIndia's leading apparel companies are planning to
merger between the clothing company is imperative,continue to promote sales. Garment industry that
because the global retail giant eager to buy productsIndia's domestic market is still in a downturn.
from large units. Currently, India's leading garment