Garment exports are expected to cross $ 15 billion (Rs 650 billion) by 2009-2010 at CAGR of 18-20 per cent, according to a study by Cris Infac. The study calls for investment of around rs 340 billion across spinning, weaving, processing and garment stitching for creation of fresh capacity and modernizing the existing ones.
Presently in garments, Indias exports are less than 50 per cent, wherease in China they constitute around 65 per cent of total textile exports. Indias share is still a meagre three percent of the total global apparel market estimated at $295 billion, wherease China accounts for a 30 per cent share, the study said.
The re-imposition of quotas on China by Europe till December 2007 and by US till December 2008 have opened up opportunities for Indian garment exports. The study shows that country should focus at enhancing its garments exports against the export of fabric or yarn.
The potential export value of yarn and fabrics at ($ 4.5 billion export) if it gets converted into garments would amount to over $20 billion, the study projects. Return on capital employed is more for garment companies as compared to yarn and fabrics units, it said. The study maintains that yarn and fabrics can also be selectively exported to destinations such as Bangladesh and China.