About the quota before the end of the market share of Indian textiles set too high, but industry leaders and analysts say India is not competitive for the future and prepare for surge in demand. From January 1, 2005 onwards, all WTO member countries will be lifted all restrictions on textiles and clothing, it will produce low-cost countries, paving the way for large.

Widely expected that China will occupy 50% of U.S. apparel import market, China in 2002 in the U.S. apparel import market share is 15%. The world textile market, 400 billion U.S. dollars, experts said that India will soon increase its market share doubled to 6%. Analysts estimate that, in order to keep up with demand in the next 5-6 years, the Indian textile industry needs 1.4 trillion rupees (310 million) investment.

Big manufacturers Arvind Mills and Raymond India Company, and the benign operating companies such as Welspun India, has expanded production capacity, improve the export plan last year, rapid growth of their market share. India’s largest denim factory Arvind’s market share increased by more than 75%, while India’s largest fabric market share in factory Raymond grew by over 80%. Textile manufacturer Welspun’s sales doubled.

Khandwala’s Sunil Agarwal said, “Our textile and apparel exports to nearly 70% of the quota countries, so we can expect after the abolition of quotas on exports of Indian goods. But in the last 10 years, India’s market share of almost no growth Therefore, we can not blindly optimistic. “EU in 2001 and 2003, imports of Chinese textiles and clothing almost doubled, partly due to the quota since 1994, gradually be removed.

U.S. textile manufacturers have been lobbying the Government to set up a new China textile and apparel import tariffs, while the EU is imported from China to develop a special monitoring system. India has rich raw materials, low cost and skilled labor advantages, these advantages lead to foreign buyers can not rely entirely on China.

New Delhi hoped that by 2010 the scale of annual exports of textiles increased to 50 billion U.S. dollars, is now more than four times. But analysts said that to achieve this goal, large enterprises must enhance the value chain, healthy businesses should work to high-end market, small business should be to consolidate market share. Textile production is India’s second major economic industries, second only to agriculture, nearly 35 million workers. India has one billion population.

Textile industry in a few large integrated companies, as well as hundreds of small companies, large companies with multinational clients, small companies rely heavily on quotas and trade protection policies was able to survive. Analysts said that many smaller companies will be shuffling out. Some companies may scale up, but they will face tremendous price pressure, the profit will be reduced.

Ranmond company will invest 1 billion rupees in the suit, trousers, formal suits and denim clothing production, will invest 1.27 billion rupees in denim production, plans to raise annual output to 30 million meters, to become India’s second largest denim fabric manufacturer. World’s fifth largest towel manufacturer Welspun’s production capacity more than doubled. It produces towels, bathrobes and bed linens, nearly 90% of exports to the U.S., major retailers, including Wal-Mart, JC Penney, and Shopko stores.

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