Chennai, Sept 27: Indian apparel industry, already struggling amid increasing global competition, is in for fresh challenges once the quota regime ends by 2005, according to S B Mohapatra, textiles secretary, Government of India. "Bilateralism and regional agreements by major importers of textiles like the US and the European Union will have its adverse impact on India's competitiveness in the global textile market during the post quota period," he said, addressing the Textiles and Garments Exports Conference organised by the Apparels and Handlooms Association here.
He said several tariff and non-tariff restrictions under the growing bilateralism of the major trade blocs like EU and US was likely to hamper the competitiveness of Indian textile exports during the post-quota period.
"The fact that India was not a member of any major global trading block only adds to the problems,” he said.
The government was planning a series of initiatives to help the industry overcome the impending crisis, he said.
Indian textiles was likely to face competition not only from China but also from Pakistan which had invested at least four billion US dollar on modernisation of their textile industry, he said.

Bureau Report