Indian garment raw cotton: most cost-competitive

Panabaaka Lakshmi, India’s textile minister, said that although the financial pressures of the textile industry have had a negative impact on the banking system, the bank borrowed 155,809 crores of credit for the textile industry. As of the end of the third quarter of fiscal 2011, the textile industry constituted 8% of the bank's overall restructuring assets. In addition, the total amount of ** under the CDR mechanism is Rs 11,370 crore.

The government decided to determine the tax rebate rate every year based on the recommendations of the All India Tax Rebate Committee. The tax refund rates for China, Pakistan, and Bangladesh are not determined by the government.

Indian textile mills use the cheapest cotton in the world. Indian textile raw material costs are relatively cost-competitive because they use domestically produced fabrics.

In the men's Chino cotton denim garments and cotton t-shirts, the cost of raw materials in India is the second lowest in the world. A garment's fabrics, cotton, trims, labels and packaging materials are purchased locally.

Men's Chino cotton twill garments cost US$4.119 per piece of clothing in India, compared with US$4.016 in Pakistan, which is 7% cheaper than China, 11% cheaper than Bangladesh, and 13% cheaper than Cambodia. In cotton knit T-shirts, the cost of raw materials in India is US$0.87 per garment, which is 9% cheaper than China, 10% cheaper than Bangladesh and Cambodia, and 4% higher than Pakistan.