Indian textile growth

India's highly respected clothing trade analyst, Jal Arani, has reported that India may beat China to the punch as leader in the global textile market.

In a report for the Indian research and broking house, ICICI Securities, Irani reported that Indian textile companies are on the brink of an enormous growth spurt, thanks to the dismantling of 84% of the global export quota from January 2005, and a considerable leverage of resources and freeing up of opportunities.

Irani predicted that India's share in the global textile trade is bound to grow the fastest, as its current quota is among one of the lowest. Wal-Mart, the world's largest retailer, is set to source up to US$ 10 billion (GBP 5.5 billion) worth of good per year from India. According to Irani, this will cause Indian textile exports to climb to US$50 billion a year by 2010.

The report carries a very optimistic tone in reviewing the developments of the Indian textile market. It is extremely positive about the Indian government's endeavour to restructure debt, which will bring down borrowing costs. Meanwhile, improved infrastructure and logistics will bring about a reduction in delivery time by professional management. In addition, increased inflexibility of labour is improving productivity.

Furthermore, the report revealed that the textile industry's switch to the newly discovered naptha natural gas will cut power costs in half.

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