| Come 2005 and the garment export industry faces huge opportunities for growth, as quota countries will stop limiting the quantity of textiles and clothing, thanks to the end of the quota regime. For some countries, this is good news but for some it is not. It has to be seen how different countries will adapt to the new market scenario.
As sourcing hubs gear up to stay ahead, weaknesses and strengths of each country are under observation, and findings based on these analyses can prove crucial for the survival of the industry.
Experts in the case of Pakistan feel that along with opportunity come huge risks for Pakistan and its 140 million people, as they would be left behind in the rush for dominance in the New World Order in the textiles market.
Textiles in Pakistan are a very important sector and accounts for almost two-third (60%) of the country’s exports. Pakistan’s textile exports too have fared well in the last six months recording $3.313 billion against $2.846 billion during the July-December 2001 period. According to Munir Ahmad, Pakistan’s former chief textiles negotiator, and currently Director of the International Textiles and Clothing Bureau, Geneva, “The Pakistan textile industry has the potential and should take advantage and should increase after quotas go away.”
Pakistan as a follow-up process is gearing up to face post-2004 regime, and has already imported machinery worth US$ 1 billion. People in the textile and apparel industry, especially the weaving and spinning units too are getting ready to export the finished product. Besides, there are definite expectations of block orders by 2004.
Not to be left behind, India too is gearing up for the challenges. There is no doubt that India is also a strong contender for dominance in post 2004 period. According to Charles Bremer, VP, American Textile Manufacturers Institute, “After 2004, as far as the US market is concerned the only participants are going to be China, India and Pakistan.”
However, despite India being a strong player in world textile and apparel market, a gnawing question that has eternally bothered the apparel and textile industry of India is why is Pakistan one-step ahead in fabrics processing from India?
India’s share of world trade in yarn is 22 per cent. However, it suddenly falls down to 3.2 per cent in fabrics and a mere 2 per cent in apparel this is proof enough that India’s weaknesses lies in fabric processing.
India lacks the capability of producing value-added fabrics as it does not have advanced facilities for fabric finishing and dyeing, Pakistan on the other hand is strong in growing, spinning, weaving and processing of cotton and other fabrics. While India has an edge over Pakistan in garmenting, it lags behind in fabric processing. The reasons are simple. India has never given due consideration to fabric processing. Among other things to combat this problem, India needs to focus on value-added fabrics, improve and make investments in its processing capabilities. The race for supremacy is on.
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