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Industry Overview

Indian Clothing has a huge impact on the mainstream identities of western style and culture. In fact, India is one of the few countries in the world where traditional garments have not been replaced by western wear. Today, India's fashion industry is flourishing, with both traditional and western wear in demand.

India is poised to be the next big winner - after China - in textile manufacturing, with garment exports growth by 20% by the end of 2005. To meet the increase in demand, suppliers are upgrading their production facilities. They are also working to improve quality and reduce delivery lead times.

Apparel industry supports a direct employment to 4.89 million persons. Combined with the textile industry, it directly and indirectly employs 35 million people. India's garment exports to constitutes 52.04% (US$ 2576.90 million) during the year 2003-04. This industry specifically in India is dominated by private sector and the export usually is hampered by the fact that the Indian exporters cannot afford expensive marketing.

Various important buyers like JC Penney, Philips Van Heusen Corporation, Kellwood Company and management consultants like McKinesey & Company have projected that India could be the next biggest winner after China due to abundant raw material availability, robust textile industry, IT industry support, design capabilities, etc. The study have predicted that India could grow garment exports to 15-18% per annum and reach over US$ 25-30 billion by 2013 if reforms are implemented.

However, the exporters have been facing problem of availability of quality fabric for production of Indian clothing, both men and women. In every nook and corner of the country, there are the craftsmen who spent their entire life weaving the traditional dresses of Indian women which are sold all over the country and also exported outside. In every EXIM policy, propositions are always made to make export and import easier, especially for the small industry segment.

Raw material production includes cotton, silk, wool, linen and manmade fibers such as polyester, viscose, acrylic and polypropylene. Indian companies have built global scale even in non-traditional areas.

India's textile and apparel industry directly and indirectly employs 35 million people. The country has an abundant, low-cost base of labor which has long-term sustainability and very high skill in fabric-and garment-making.
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