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%n per annum and reach over US$ 25-30 billion by 2013 if reforms are implemented.

Further, this industry supports a direct employment to 4.89 million persons and further supports a family of another 17.2 million persons. Apparel exports constitutes 9.3% share in India's overall exports and have a share of 42% from the textile sector.

During 2003-04, the exports of garments have touched US$ 5200 million as compared to US$ 5000 million in the previous year, registering a growth of 4%. The world clothing exports is around US$ 201 billion and the share of India works out to 2.58%. Indian ranks at position 6 after China (20.54% share), Hong Kong China (11.09% share), Turkey (4% share), Mexico (3.86% share) and USA (3% share). The share of Bangladesh is 2.06%, Indonesia 1.9%, Korea 1.84%, Thailand 1.68%, Philippines 1.30%, Sri Lanka 1.16% and Pakistan 1.11%.

During 2004-05, the export target fixed is 6000 million against US$ 5200 million achievement in the year 2003-04, projecting a growth of 15.38%.

India exports 41% (US$ 1988 million) garments to USA, 52% (US$ 2576 million) to European Union, 3% (US$ 179 million) to Canada and 4 % to Non-quota countries. The major countries in European Union are United Kingdom (US$ 588 million), France (US$ 532 million), Germany (508 million), Benelux (316 million), Italy US$ 214 million, Spain (US$ 149 million), Denmark (US$ 117 million), Sweden (US$ 67 million). The major non-quota countries are UAE (US$ 43.6 million), Saudi Arabia (US$ 304 million), Switzerland (US$ 21.8 million), Norway (US$ 15.7 million), Japan (US$US$ 18.8 million), Mexico (US$ 15.6 million), Brazil (US$ 5.58 million), Australia (US$ 5 million), Chile (US$ 4.9 million) and South Africa (US$ 4.8 million).

India's top items of exports are Ladies Blouses (US$ 909 million), T-shirts (US$ 882 million), Gents Shirts (US$ 570 million), Trousers and Shorts (US$503 million), Ladies Dresses (US$ 289 million), Night Dresses (US$ 289 million), Sweater/Pullovers/Cardigans (US$ 255 million), Skirts (US$ 244 million), Overcoats, Coats, Blazers (US$ 222 million) and Babies Garments (US$ 180 million).

The Unit Value Realization in the year 2003-04 has gone up by 7.81% from US$ 3.71 per piece to US$ 4.00 per piece.

• Among Top 10 economies of the world with a GDP of $ 2.4 Trillion USD.
• A vast manufacturing base including aircraft, locomotives, ships, cars, power plants, capital machinery, chemicals, consumer electronics, textiles, apparel and food products.
• Top destination in the world for low cost high value Software services and R & D.
• Largest concentration of English speaking educated workforce in Asia.
• The 6th nation in the world to launch a space program and telecom satellites.
• 2nd largest railway network in the world, together with vast coastline & sea ports.
• A free market society with advanced legal, financial systems and a free press/media
• One of the largest democracies of the world.
• Founder member of GATT and active member on WTO.
• Excellent rail/air services for passenger and freight movements.
• Reforms in health sector by opening large medical institutes.
• Farmers credit card scheme intensified.
• Fiscal benefit in new power project extended from 2006 to 2012.

VERTICAL INTEGRATION : India's textile industry is truly vertically integrated from raw material to finished product, including fiber production, spinning, knitting and weaving, and apparel manufacture. Business and cultural linkages with neighboring countries Bangladesh, Sri Lanka, and Nepal, Thailand, Myanmar, PR China provide a platform for sourcing from them as well. PRODUCTION VARIETY : 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.
Fabric production includes fine dress fabrics, shirting, fabrics for trousers/shorts worsted suiting , denim, fleece, jersey, flat/woolen knits, technical fabrics, and more.
Apparel production includes active sportswear, outerwear, foundation garments, suits, socks, infantwear etc.
Production of made-ups includes a wide variety of bed, bath, and table linens, kitchen accessories etc. LABOR FORCE : 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. CAPACITY : India's industry has consistently remained flexible in terms of production quantity and lead time and thus presents the possibility of producing quantities as low as a few hundred pieces.
A large base of European and American customers are already served from India, with almost 35% of apparel exports headed to EU. OPERATING ENVIRONMENT : The textile and apparel industry is an important one to India, contributing 1.6% of industrial production and 30 % of total exports.
Import duties on capital equipment are low (the majority of the capital equipment used by the apparel industry, like sewing machines, can be imported at 5% basic customs duty), fabrics can be imported duty-free if made up into garments and re-exported, and import duties on fabrics and other raw materials are duty free for export production. The apparel industry can import duty free specified trimmings and embellishments like Fasteners, Rivets, Garment Stay, Laces, Badges, Sewing Thread, Sequin, Tape & others for export production.
India has a structured, multi-tiered administrative, political and legal system that would be familiar in nature to European and American investors.

The Indian garment exporters have given main emphasis on new fabrics and presentations like Romantic line meant for top designer, which is not available in budget stores. There is an introduction of new fabrics like poly satin, viscose, ply chiffon, heavier georgette, tie and dye fabrics, chifley fabrics, embroidery and hand knitted garments.

The exporters have chosen to revisit the prints and have taken those floral prints where flowers of other countries have taken place in place of Indian flowers.

The exporters have been using various kinds of washes like natural wash, vintage wash and laser wash to give a new look to the garments. Hippie/frills and lot of sparkling bead works have also been demonstrated. Geometric designs have also been projected as per the new fashion trends. Some exhibitors have made their collection by using lycra and have presented with different kinds of embroidery to reach high fashion community.

The uniqueness of Indian garment exports is quick turn-around time, factory compliance, factory personally looked after by Presidents/CEOs of the company and undertaking even small size orders.

India has already reduced peak rate of customs duty to 20 %, which is in line with the WTO Agreement.