|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
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
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
And more... To see the full Industry Overview order now.