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India is well positioned to gain a higher share of the global home textiles industry in the post-quota scenario. While China is the supplier of first choice, India has the potential to emerge as the second-largest sourcing hub.

However, for this opportunity to materialize, suppliers in the country have to overcome numerous challenges such as a fragmented textile supply chain, low technology levels in the weaving and processing sectors, stringent labor laws and growing competition from developing countries such as Pakistan and China.

Over 85 percent of home textiles exported from India are made of cotton. Bed, table and kitchen linen, and towels are the main product categories. Together, the US and the EU absorb more than 80 percent of India's home textile exports.

In the financial year 2004-05, the country exported around US$1.2 billion worth of home textiles. Export revenue is projected to grow at a compound annual growth rate of 15 percent for the next five years.

One of India's competitive strengths is its cotton textiles supply. The country has a 12 percent share in global trade of cotton textiles, second to China. Cotton textile exports have grown at 6 percent annually for the past five years, compared to the world average of 2 percent. The country is also the third-largest producer of raw cotton after China and the US.

Robust R&D capability is another advantage companies in India have. Some manufacturers even view design capability as a marketing tool, as it allows them to work closer with buyers in upstream product development activities. Many suppliers are deploying CAD technology to improve turnaround times, while a few are tying up with designers in Europe and the US in a bid to enhance their product range.

The availability of skilled labor for carrying out handwork embellishments such as embroidery and embellishments such as patchwork, threadwork and decorative accents also gives makers an edge. This niche is especially significant in view of the fact that India suppliers do not have the high volume capacity that is China's forte.

Impediments to export growth

A number of factors are slowing India's home textiles export growth. Firstly, the diverse textiles industry, which is the country's key strength, has also been a bottleneck. This is because the industry is as fragmented as it is diversified. The fragmented nature is an outcome of government policies that have until now promoted a decentralized manufacturing environment favoring small-sized operations. This fueled the emergence of thousands of power loom and handloom units, which have formed discrete production clusters peppered across the country.

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India Suppliers of Home Textiles
 
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India Sourcing Report

 

Home Textiles

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India is among the world's top three suppliers of home textile products. Almost 80% of its US$1.2 billion worth of exports annually are shipped to the US and the EU.

Growth is forecast to be robust, especially as Western customers come to appreciate traditional Indian specializations in embellishments such as embroidery and patchwork.

However, the market is also becoming more competitive, with companies establishing in-house dyeing facilities, adding high-speed looms and taking other steps to stay ahead.

With profiles of 95 key manufacturers, as well as a complete overview of the industry, this report will help you source home textiles easily and cost effectively from India.



  Suppliers: 95 Products: 175 Pages: 130 Published: Oct 05 Price: US$445
 

All information contained in India Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.    Apparel Search is working in association with Global Sources to help promote this sourcing report to the international fashion community.  If you have questions about the report or status of your orders, please e-mail Xue Mei for further assistance.

The home textiles report has been developed and maintained by Global Sources.  Apparel Search is working in association with Global Sources to help promote this sourcing report to the international fashion community.

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