Avenue CREATIONS - India 2.98

Since the 1990"s , the business environment has changed. The economy is exposed to greater degree of external competition,more liberal trade and investemnt policies and improvements in the balance of payments and foreign exchange positions.

The textile and garment industry currently accounts 20% of indian total exports. india is a major sourcing hub for readymade garments for global companies like gap,superdry,tommy hilfiger etc. The apparel sectoris expected to expand even further following the expiration of the global textile and apparel quota system in december 2004, india expects to capitalize its strong multifibre base, large production of cotton,low-cost man power and presence across the entire value chain of the textile and apparel industry.

The challange is to consolidate the industry, which will result in economies of scale and resources becoming available for capital investment with which to upgrade plants and machinery.