India's competitiveness in the cotton textile sector has improved over the last decade against six competing countries including China, Bangladesh and Thailand, leading to a higher global market share.
The increase in competitiveness has been in areas like technology up-gradation, manufacturing costs and exports, the study titled ‘Cost benchmarking in India vis-à-vis Bangladesh, Indonesia, Egypt, China, Pakistan and Turkey’ said.
Greater competitiveness in key areas has pushed India’s global market share from 3 per cent in 2002 to 4 per cent in 2012, the study commissioned by the Cotton Textiles Export promotion Council (TEXPROCIL), a Government-sponsored body promoting textiles exports, highlighted. It is, however, much below China’s share of over 30 per cent.
A more competitive Indian industry, with adequate Government support, could create crores of jobs and double exports within three years, the report said.
India’s exports were worth $32 billion in 2012-13.
Texprocil Chairman Manikam Ramaswami, while releasing the report on Thursday, said exports could grow manifold if the Government brought in a transparent and clearly spelt out policy to market the cotton procured by the Cotton Corporation of India.
"In the recent past, the policy inconsistency in terms of ad hoc policy interventions led to distortions in the overall performance of the textile industry," the report noted.
Interestingly, depreciation in the value of the Indian Rupee in the last ten years against the Dollar played a significant role in adding to India’s competitiveness against China as the Chinese Renminbi appreciated against the Dollar in the same period.
India could gain significantly by improving competitiveness vis-à-vis China as its share in global trade is just 4 per cent against China’s 30 per cent, the report noted.
"A 10% reduction in China's market share gives India an opportunity to double its exports," the report said, adding that if the Indian industry gains in competitiveness it could easily shift market away from China.
The study was carried out by Zurich-based consultancy agency GHERZI.
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