India’s cotton and apparel exports are expected to grow around 10 percent this year, spurred on by international buyers seeking refuge from other emerging manufacturing countries grappling with higher wages, political and civil instability, and work environment and compliance issues.
India exporters see their country’s low labor costs and record domestic cotton production this year as an opportunity to gain market share, according to Reuters.
Last month, the U.S. government projected India to be the world’s No. 1 grower of cotton, knocking second place China from the top spot for the first time in 30 years. The Cotton Association of India estimates next year’s output of cotton to be about 39.63 millions bales, but noted that it could reach upward to 41 million bales as the amount of cultivated land increased in the last year.
India’s main markets are the European Union and the United States, however, the country could dip into leading exporter China’s market share. The country is also exploring growth opportunities in areas like Bangladesh, where the Synthetic and Rayon Textiles Export Promotion Council of India and the High Commission of India of Dhaka organized the two-day Intexpo Bangladesh from Sept. 28-30 in Dhaka. The exhibition showcased polyester spun yarn, viscose yarn, dress fabrics and home textiles, among other products, by 22 Indian manufacturers.
According to Grasim vice president Ajay Sardana, domestic expansion is also set to increase India’s local textile market from the current $60 billion to $65-$68 billion in the near future. However, Christian Schindler, director general of the International Textile Manufacturers warned that India’s poor infrastructure, inconsistent energy supplies and lack of business-friendly environment for investors could constrain export growth in upcoming terms.