Coimbatore: The Indian domestic and export markets for textile and apparel are expected to grow at 6.5% and 12% Compounded Annual Growth Rate (CAGR), respectively, a leading consultancy firm said.
Driven by favourable demographic factors, rise in disposable incomes and a shift towards branded apparel, the domestic textile and apparel market was slated to grow at 6.5% CAGR, according to “CII-Ernst and Young Textile and Apparel Report-2007-India In the Global Textiles Ecosystem.
A 12% CAGR was expected in exports with international retailers looking at India as the best alternative to China for sourcing of apparel, the report said.
The report identified ‘sourcing´ as a huge opportunity.The expected sourcing market size in 2008 was $22-25 billion and projected to grow to $35-37 billion in 2011, it said.
This was largely attributed to the end of the Multi Fibre Agreement, which has triggered growth in the quantum of sourcing of the top global retailers from India.
India has several advantages in terms of abundant supply of cotton and man-made fiber, mature and well-established production base, cheap and skilled labour and good design capabilities.
Besides this, government incentives to exporters and entry of foreign retailers into the Indian market would also act as a fillip to retail sourcing from India, the report said.