Indian textiles industry needs to restructure itself by evolving manufacturing and marketing strategies to take advantage of the likely addition of a $100 billion to world textiles trade, once the quota regime under WTO ends in 2004, a top United Nations Industrial Development Organization official said.
"WTO presents a major opportunity as India comes out of the quota regime and attempts to conquer new markets. The need of the hour for Indian enterprises is to evolve manufacturing and marketing strategies and better rationalisation of its resources," George Assaf, UNIDO representative and regional director for South Asia, said in New Delhi on Saturday.
Addressing the Garment Techno Forum 2003, organised by the Pearl Academy of Fashion and Garmentech Expo Ltd, he said with the phase out of the Multi-fibre agreement by the end of 2004, the most critical textile items would be free of quota restrictions in markets like US, EU and Canada.
"This is likely to result in approximately $100 billion of additional world trade, as a result of which world trade is likely to touch $500 billion by 2005," he said.
Assaf, however, warned that disparities in India's textile taxation structure, high turnaround time due to the manufacturing system and lack of facilitating infrastructure could just see India's challenge as a supplier being taken over by Latin America and East Europe with their increasing ability to supply at short notice.
Imposition of non-tariff barriers and a growing practiceof regional alliances and heightening entry barriers would that industry would need to adopt a consortium approach to reduce transaction cost and improve marketing effectiveness.
