“Overseas buyers see India as a preferred supplier next to China. But global buyers are keen to do business with suppliers who provide one-stop solutions and are able to provide the volumes that they need. Indian manufacturers realizing this,” adds Texprocil Executive Director, Siddhartha Rajagopal Retailers like Wal-Mart, Gap, H&M, and JC Penny etc. are stepping up sourcing requirements from India.

Buying volumes of many of their already in the range of 10-20bin per year, with reported plans to step up to 150bn within the next 3 to 4 years. Analysts tracking the sector also said the US-China textile pact which restricts exports of 34 clothing and the categories from China pact will also allow India to strengthen its focus in the export market.

The TUF scheme has greatly helped Indian textile companies in increasing their productions capabilities,” said vikram suryavanshi, analyst with Stock broking. But, here the problem is that not all firms see the rosy pink Textiles companies, which largely depend on exports, are facing Pressures that are hitting margins “This can be countered only by cutting costs or increasing production. Our exports have come down by 25%. We are concentrating on the domestic market,” says Vinod Arora, aarvee Denims.

The expansion will enable Indian Industry to capture the $25-30bn market by 2013.According to Crisil, the sector is likely to raise over 16,000 crore from the capital markets in the next few years. Clearly, a chunk of this would be earmarked for capacity expansion as well as accepting new facilities. Investments in the sector are estimated at 20-25bn in these 2-3 years and over 200bn by the end of 2010.clearly, some see the growth with a corpus of Rs 25,000 crore, a scheme floated by the government textile companies upgrade technology as a lifesaver.

The latest data available with the Textile Commissioner, textile units have picked up nearly Rs 12,758 crore over the last three years under the government of India’s Technology Upgradation Fund Scheme (TUF) which would see an addition of six million spindles and 30,000 shuttle looms this year