India's share in global textile trade is expected to increase due to the removal of quantitative restrictions, a study conducted by-CRIS INFAC said. The report, released recently, also said that India's export of blended yarns and grey fabrics is expected to increase due to labour cost advantages.

"However, with the expected increase in demand for high quality fabric from the household and industrial segments, the lack of modern processing facilities would place India at a disadvantage," it said, adding that this could lead to an increase in dependence on imports of processed fabrics.

The Indian man-made fibre industry in India is expected to face a supply shortage in the next few years in the absence of entry of new players, it added.

The report forecasts Reliance Industries to increase its polyester capacity by around 320,000 tonnes by 2003. Demand for other man-made fibres and yarns like viscose, acrylic and nylon are also expected to increase although at a lower rate as compared to the growth in demand for polyester.

It also forecasts the demand growth for fabric in the domestic market and the expected share of man-made fabrics in domestic fabric consumption.

To view related research reports, please follow the links below:-

World Textile Fibers to 2003

Coated Fabrics - Private Companies Report