Released on = August 23, 2007, 5:15 am

Press Release Author = Textile Treasure

Industry = Apparel & Fashion

Press Release Summary = The catalysts, which have placed the industry on this
trajectory of exponential growth are a buoyant domestic economy, a substantial
increase in cotton production, the conducive policy environment provided by the
Government, and the expiration of the Multi Fibre Agreement (MFA) on 31
December'2004 and implementation of Agreement on Textiles and Clothing (ATC).

Press Release Body = On 23 Aug 2007, Mr KJ Arora, the CEO of textiletreasure.com the
online apparels info magazine was quoted as saying \"The buoyant Indian economy,
growing at the rate of 8 percent, has resulted in higher disposable income levels.
The disposable income of Indian consumers has increased steadily. The proportion of
the major consuming class (population that has an annual income of more than US$
2000) has risen from 20 percent in 1995-96 to 28 percent in 2001-02. This is
expected to move up to 35 percent by 2005-06, and to 48 percent by 2009-10. This
translates into a growth of 9.3 percent over the next 8 years, and will result in
higher spending capacity, manifesting itself in the greater consumption of textiles
and apparels\".

The Indian textile and apparels industry consumes a diverse range of fibres and
yarn, but is predominantly cotton based. A significant increase in cotton production
during the last two - three years has increased the availability of raw cotton to
the domestic textiles and apparels industry at competitive prices, providing it with
a competitive edge in the global market.

The Government has also provided industry a conducive policy environment and
initiated schemes, which have facilitated the growth of the industry. The Technology
Mission on Cotton has increased cotton production and reduced contamination levels.
The Technology Upgradation Fund Scheme (TUFS) has facilitated the installation of
the state-of-the-art / near state-of-the-art technology/machinery at competitive
capital cost. The rationalization of fiscal duties has provided a level playing
field to all segments, resulting in the holistic growth of the industry. Besides the
government's permission to allow import of a number of textile and apparels
resources in terms of trimmings, embellishments, consumables and accessories,
fabrics, linings/interlinings, etc. has made the apparels export industry in India
much more competitive than ever before.

Not only this, the government, of late has been giving a lot of attention to
strengthen infrastructure like roads, ports, power, water, telecommunications, etc.
to supplement the efforts put in by the Indian textile and apparels industry to
become a surrise industry.

To provide Indian consumers with world-class quality in textile and apparels and
retail services, the government has recently allowed single-brand overseas retailers
to set up retail shops in India. The multi-brand overseas retailers/super
markets/investors are already in India to conduct wholesale business to feed
existing retailers with quality products.

Quotas or quantitative restrictions imposed by developed nations, which restrained
the export growth of the Indian textiles and apparels industry for over four
decades, were eliminated with effect from 01 January 2005. This has unshackled
Indian textiles and apparels exports, and this is evident from the growth registered
in the quota markets. Apparels exports to the USA during 2005 and 2006 increased by
34.2 and 7.08 percent respectively, while textiles exports during 2006 to the US
showed and impressive 12.42 percent growth. Similarly, in Europe, apparels exports
increased by 30.6 and 17.50 % respectively in 2005 and 2006, while textile exports
registered 2.2 and 3.5 percent growth in the similar period respectively. The
increasing trends in exports is expected to continue in the years to come.

If we look at the US and EU import statistics for apparels alone, we find that these
major global players are not inclined to source exclusively from China and India is
considered as the second most preferred destination for major global retailers due
to its strength of vertical and horizontal integration.

The Indian government has always and is continuing to consider the role of textiles
and apparels manufacturing units in India as very critical in achieving the
objectives of faster and more inclusive growth, and has laid emphasis on policies
aimed at creating an environment in which entrepreneurship can flourish.

The textiles and apparels industry is targeted to grow at the rate of 16 percent in
value terms to reach the level of US$ 115 billion (exports US$ 55 billion; domestic
market US$ 60 billion) by 2012, while the fabric production is expected to grow at
the rate of 12 percent in volume terms. Apparels alone are expected to grow at the
rate of 16 percent in volume terms and 21 percent in value terms, while exports are
expected to grow at the rate of 22 percent in value terms, more info on
http://www.textiletreasure.com

Web Site = http://www.textiletreasure.com

Contact Details = Company Name Textile Treasure
Company Address 2/44, Old Rajinder Nagar, New delhi - 110 060 India
Contact Details Tel: 91-11-45032885, 91-9810110995, 91-9911410995
Fax: 91-11-45032885 Email: info@textiletreasure.com http://www.textiletreasure.com