India’s cotton and apparel exports are set to grow by around 10 per cent this year as higher wages, political instability and concerns about workplace conditions in other competing markets attract international buyers towards Indian exporters. The rise in textile shipments from India, currently estimated at around 4.5 per cent of world trade, may affect China’s hefty 36 per cent share of the global market and will prove a big boon for Indian textile merchants who are keen to exploit the rising demand stemming from weak cotton prices and worldwide economic growth. The main markets for Indian textiles at the moment are the US and the European Union, together accounting for 60 per cent of overall textile exports from the country.
Further, the sanction imposed by the EU on Russia offers huge scope and opportunity for Indian traders in sectors like agri-products, chemicals and textiles to capture the Russian market. Also, India has emerged as a prominent destination for leading retail groups belonging to varied segments such as fashion and apparel and big box hypermarket chains. About 39 per cent of the global retailer base, considered part of a recent high-level study, is yet to establish its presence in the country.
According to this survey, most global retailers active in India are in the fashion & apparel and accessories. Since India is still a largely untapped market in the retail field, it offers significant opportunities for growth, especially in segments such as fashion and apparel as well as luxury goods, on account of factors like an expanding middle class, rising disposable incomes and a growing appetite for international quality goods and services. There is also a further intensification of the Indian exporters’ drive to expand their presence in the as yet untapped markets like Latin America, Africa and Japan. Meanwhile, MNCs like Wal-Mart, IKEA, GAP, American Eagle and Target are now showing greater preference for Indian garment products and are placing bigger orders, besides setting up malls in the country, alone or jointly with local parties. In this context, the Prime Minister’s ‘Make in India’ campaign and India attaining the status of a factory-compliant country must give a further push to the MNCs’ business promotion drive in the country.