Signs of recovery are surfacing on the global textile markets. “There’s no doubt that we’ve seen some signs of a recovery during the early part of 2010, as confirmed by increased orders for the second half of 2009, and renewed investments in key markets such as China, India and Brazil,” says Mr Sandro Salmoiraghi, chief of ACIMIT, which spearheads export of textile machinery from Italy. From the importers, there are more serious reports: The average price of US clothing imports has fallen to its lowest level in over 20 years. At US$ 2.96 per square metre equivalent (sme) in 2009, the price was 6.1% down on the previous year and 21% lower than the average price of around US$ 3.75 per sme, which prevailed for much of the 1990s. It is time for the harvest for exporters, and before that there is an urgency to invest. All-out measures have to be mounted to enable the Indian textile industry to attain the export target of US$ 55 billion by 2011 - 12.

Still the age-old problems persist. There are a few areas, which need immediate attention of the industry and the Government. Rigid labour laws are adversely affecting the competitiveness of the industry. Archaic rules still govern our contract Act. It should be made flexible enough to facilitate outsourcing of activities without any restrictions as well as to offer contract appointments, at the same time ensuring protection of the rights of these labourers in terms of their health, safety, welfare, social security, etc. For example, countries such as China, Bangladesh and Sri Lanka have allowed contract labour in the textiles sector. Today, international trade in textiles and clothing has become globalised in the true sense. The markets of USA and Europe, which account for more than 90 per cent of Indian apparel exports, are entirely dominated by various global brands, and Indian exporters are merely suppliers to such brands. Brand development can only deepen the market share and acceptability of Indian apparels thereby leading to increased export earnings.