The determinants of increase or decrease in market share in the medium term would however, depend upon the cost, quality and timely delivery of the products, the study said.
In the long run, there were possibilities of contraction in Intra-European Union trade in textile and garments and reduction of market share of Turkey in EU and market share of Mexico and Canada in the US, providing more opportunities for developing countries like India, it said.
In the short term, both India and China would gain additional share proportionate to their current market share and in the medium term, both the countries, however, would have a cumulative market share of 50 per cent, the study observed.
It was estimated that India would have a market share of 13.5 per cent in textiles and 8 per cent in garments in the US market and with regard to EU, it was estimated that the benefits were mainly in the garment sector, with China taking a major share of 30 per cent and Indian gaining a market share of eight per cent.
India would have market share of eight per cent in EU textile market as against the China's market share of 12 per cent, the study pointed out.
In most of the quota products imported by the USA, India was one of the leading suppliers of readymade garments. Though China was a major competitor, the unit prices for most of these product groups were high, which provided opportunities for Indian business, the EXIM Bank study noted.
In the EU market also, India was a leading supplier for many of the textile products. Though Turkey would emerge as the biggest competitor for both China and India, with regard to unit prices, India seemed to be lower than both the countries in many of the categories.
The study, based on 2003-04, said the share of textile and garments exports in India's total exports stood at about 20 per cent and in the quota countries, USA, EU and Canada accounted for nearly 70 per cent of India's garment exports and 44 per cent of textile exports.
Amongst non-quota countries, UAE was the largest market for Indian textile and garments, accounting for seven per cent of textile exports and 10 per cent of garments exports, it said.
Tirupur: Indian's textile valley
In terms of products, cotton yarn, fabrics and made-ups were the leading items in the textile category and in clothing, the major item of export was cotton readymade garments and accessories.
However, in terms of share in total imports by European Union and USA from India, these products held relatively lesser share than products made of other fibres, thus showing the restrain in this category.
Though India was one of the major producers of cotton yarn and fabric, the productivity of cotton as measured by yield has been found to be lower than many countries, the study said.
Ranked fifth in terms of capacity, there was a need to enhance the capacity and technology infusion in this sector, in view of the changing fibre consumption in the world.
Apart from low cost labour, other factors that were having impact on final consumer cost were relative interest cost, power tariff, structural anomalies and productivity level the study said that India has high power costs compared to other countries like Brazil, China, Italy and Korea, it said.
In India, very few exporters had gone in for integrated production facility, it said, adding that it was noted that countries that would emerge as globally competitive would have significantly consolidated supply chain.
Asserting that activities like spinning, processing, made-ups and garmenting were found to be fragmented in India, it also said that the level of technology in Indian weaving sector was low compared to other countries in the world.
The supply chain in Indian industry was not only highly fragmented but was beset with bottlenecks that could very well slow down the growth and due to this, the average delivery lead times (from procurement of fabrication and shipment of garments) still took about 45 to 60 days, compared with 30 to 35 days of International lead delivery times, the study revealed.
India needs to cut down the production cycle time substantially to stay in the market, it suggested.
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