In the post-quota era, India and China are emerging as the major hubs for global apparel sourcing, mainly to U.S.A. and the European Union.
There are several factors which led to this development. The vast size of the Indian textile industry and its competitiveness make it one of the world’s leading apparel exporters. India has vast sources of raw materials. Labor costs are low in India. Indian traders have a wealth of entrepreneurship, designs and experience, which enable them to produce and apparel of high quality. Changes in the policies of the Indian government have opened up the Indian economy to the outside world, which has led to a rise in exports. Indian textile firms are quick in making changes such as expanding their capacity and adopting new technology, keeping in view the growing demand for Indian apparel all over the world. India has a large source of cotton domestically. About 75% of India’s exports are cotton items.