Global Textile and Apparel trade is recovering from a slump during the 2008-09 economic
recession, and is expected to reach $1 trillion by 2020 from more than $600 billion now. The
growth in frade is driven by increased outsourcing of developed countries towards lower
cost countriesin Asia. But fough times in several European countries and the slow recovery
of the US consumer market have slowed the global textile trade and India's export growth.
In the year 2007, the global frade in textile and clothing industry was at USD 238 billion and
USD 345 billion, respectively. The major trade flows in the textile industry were Intra-Europe
at USD 69.3 billion, Infra- Asia at USD 51.6 billion, Asia to Europe at USD 21.1 billion and Asia
to North America at USD 17.4 billion. In the same year, Asia and Europe had the largest
market share in world textile and clothing exports and imports respectively. (Source: WTO -
International Trade Statistics 2008).
The phase out of the WTO Agreement on Textiles and Clothing (ATC) and the end of the
quantitative restrictions in early 2005 had a major impact on international frade in textiles
and clothing, even though some restrictions were re-introduced on China's fextiles and
clothing exports in the second half of 2005. The expiry of the ten-year transition period of
ATC implementation meant that frade in textile and clothing products was no longer
subject to quotas under a special regime outside normal WTO/GATT rules but was then
governed by the generalrules and disciplines embodied in the multilateral trading system.
One of the major repercussions of the lifting of the last textile quotas in Canada, the EU
and the United States was a shift among principal suppliers to these markets.
India is one of the few countries with presence across the entire value chain of the textile
and apparel industry. The country produces cotton, jute, silk or wool and synthetic
material fo complement and strengthen the garments manufacturing industry. Almost
one quarter of the world's spindle activities is hosted in India, second only to China. It has
61% share in global looming activities including handlooms. It has 12% share in global
textiles fiber and yarn manufacturing. India is the second largest producer of sikk and
cellulose fiber and yarn and the fifth largest producer of synthetic fiber and yam. India is
expected to increase its textile and apparel share in the world trade from 4.5% now to 8%
and reach $80 billion by 2020.