The recent rise in wages in several Asean countries means their cost of production goes up allowing India to get a foothold in the expanding structured and constructed garments market. At the same time work force is decreasing due to shortage of manpower in these countries. All these factors added together give opportunities to to India to be the new global player catering to the growing requirements of the US and EU markets.

The researchers have also pointed out that Hong Kong, the world's largest exporter of garments with 15 per cent market share is shifting to service sector and manufacturing and wages and land prices are also rising.

The phase-out restrictions under the agreement on textile and clothings are expected to bring significant gains to Indian exporters, especially of cotton made-up clothings to export to the US and handloom and cottage industries to the EU. In the case of the US, the market access agreement is expected to remove restraints on approximately 20 per cent of all quotas imposed on India, primarily in garment exports, experts say.

"This is likely to increase exports of garments especially in those categories where Indian exporters tend to fill their quotas rapidly; exports from powerloom sector will also be allowed to expand considerably because of a removal of restriction on some fabrics and yarns," the researchers say.However, phasing out of multi-fibre arrangement (MFA) is supposed to open various opportunity for developing countries, but the benefits, to accrue to India, is not clear because of different measures adopted by developing countries for modernising their textiles industry with a view to improving the level of competitiveness.

The measures include development of quick response approach to take advantage of geographical proximity to retailers and to keep ahead of more far-flung producers in meeting fashion demand and government's encouragement initiatives in sales, technology, research and training.Indian textile and textile products industry has registered a growth of five to seven per cent, with present output of $5 billion and that of readymade garments $300 million.

The study conducted for Indian Institute of Foreign Trade says that India's share in total world export of textiles and garments has been a low 2.89 per cent. Yet the sector remains highest foreign exchange earner with $2.18 billion per annum. Nevertheless Vijaya Katti and Subir Sen, who carried out the study say that India with its strong textile base is poised to take a leap forward in the area of garment export.

Experts are of the opinion that an increase in the overall quota levels within the phase out period is expected to increase India's textile exports to EU by approximately Rs3 million annually although the real benefits can be assessed once the kind of items for which import restraints are to be become apparent.

Under the ATC"s safaguard clause, if integration processin EU and the US does not proceed according to the agreement or is inconsistent with it, the Indian tarrif will revert to the level obtaining on January 1, 1990, they say.Katti and Sen are also of the opinion that piece of goods imported from countries like India are processed and finished in units relocated in eastern Europe for eventual re-import to West. This cycle of production in a way provides a route for sustaining export of goods from India.

In the case of the US, items like duck fabric, stains and denims hold tremendous potentials and India has almost 50 per cent of share in the case of duck fabric market share in the country.Presently under the aggregate limits, Indian denims have a ready made a mark in North america market and it is expected to increase.

Considerable scope exists for increasing the export of make-up article, especially bed linen, terry towels and other coton made-up like table mats, towels. High value items like silk and wollen items are free of any quantitive restriction when exported to the US.Textile industry is not only India's largest exporter contributing 38 per cent of the total export it also provides employment to 50 million people. It is also regarded as the largest contributer to gross industrial product estimated at 20 per cent.In terms the net foreign export (NFE) earnings also, it ranks among one of the higest in the country with a net forex of about 75 per cent.

Textile sector comprises mills, powerlooms and handlooms. The organised textile mill sector in India consist of the spinning sector having an approximately 28.8 million spindles and 1.5 lakh rotors. Its capacity to produce spun/blended yarn is 2,700 million kg and in term of fabric production capacity, India has 3.6 million handlooms, 1.5 million powerlooms and over 170 looms in the organised sector.

About 30,000 ultra modern looms like airjet, waterjet and projectiles exist in the organised sector.The textiles industry has certain inherent strength, which has enabled it to perform better than other sector. India has the third largest technological and skilled manpower in the world and has the second largest consumer market consisting of more than 220 million middle income people.

The land under cotton cultivation is around one fourth of the total land under cotton cultivation in the world and its history can be traced to 7th century, experts say.It has ready access to domestic cotton in abundance and generally at prices which are extremely competitive and its cheap and skilled workers and has a traditional exquisite designs, which commands admiration internationally.