The recent report by ILO on textile and clothing industry reflects that the most of the findings of the studies done before the expiry of the quota system to measure the effect of dismantling of the Quota system proved to be more or less true with few exceptions. As predicted, China and India are indicated to be the main beneficiaries of the end of global trade quota system for textile and clothing.
The significant finding about India in the report is stated as 'The most recent figures show a more complex picture. India recorded a 28 per cent growth in textile exports for the period January to March 2005 in comparison with the same period last year. At the same time, ready-made garment exports fell by 24 per cent. garment exports declined to US$1.18 billion (from 1.56 billion in the same period last year). Overall TC exports by India dropped by 3.4 per cent in the first three months of 2005.'
India lost its share in few categories to China whereas, gained in few against other supplying countries. It is indicated that the India can't ensure growth unless Govt does not accelerate the pace of reforms requested by the business community and if domestic manufacturers do not take steps to improve their competitiveness. Thus, advising the industry and Govt to work in tandem to achieve desired results.
Again, on the contrary, as stated by the report, Pakistan has largely benefited from the elimination of quantitative restrictions. TC exports
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| during the first four months of 2005 reached a record level and underwent average monthly growth of 22.1 per cent when compared with the same period in 2004. The Government envisages offering additional incentives to further boost the growth of the industry. In the Philippines, the Government and social partners are confident in the country's capacity to maintain its TC share in the global market. TC exports are expected to grow by 10 per cent in 2005, and trade indicators for the first quarter of 2005 show that orders have increased by 30 per cent. Bangladesh, one of the countries most often cited as a potential loser under the new regime, does not seem to be greatly affected. So there are lesson to be learnt for the Indian industry and policy makers.
The industry has been always demanding to make policy related measures that support the growth of industry. However, there has to be unified demand from the industry for growth oriented policy for all the sectors of the industry rather than individual segment wise demands to the policy makers. Also, industry has to be more pro active to identify the opportunities and enhance capacity and competence to keep up the growth trend in the coming years. Industry's interest on capacity enhancement is gaining pace in the last one year but we could see that major thrust has been in home textiles rather than spreading entire ranges of product basket. Industry should be aware of the competition among itself even in the international market if Indian industry keeps on growing in one product segment. 
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