The Indian textile industry needs to achieve a steady 20 percent annual growth in exports with 15 percent growth in production to increase its share around 14 percent in global textile trade by the time, said the Federation of India Export Organization (FIEO) on Tuesday.  

"If we are able to achieve 20 percent growth in our textiles exports per annum and 15 percent growth per annum in domestic production then our domestic textile market size would be US $ 213 billion by 2020 and exports would be around US$ 164 billion," said FIEO President, A Sakthivel in a press release.

Given the long term growth of 7 percent in world trade in textiles, India’s share would be around 14  percent in 2020 at a growth of 20 percent per annum, which would be almost four times of India’s current share of 3.4 percent, it added.

FIEO also pointed out that India does not have a significant share in value added garments in global trade (only 3 percent), and therefore, the policy  should focus on making India a manufacturing hub of value added garments and ensure to achieve 25 to 30 percent share of these branded items in our exports .

The industry body also viewed that there is need to deepen domestic fibre consumption which remains very low.  "Today, the average world per capita fibre consumption is around 10.8 kg and that of India is around 5.5 kg only," it said adding that another main task of this policy would be to align the ratio of man-made fibre to natural fibre in consumption of India, which is currently around 40:60, to the world norms (60:40).

FIEO also viewed that India's international trade in GDP is constantly improving touching 55 percent in 2009, and looking at the trend of globalization and regionalization, the share is likely to grow further by 2020.

"The target of increasing our share to 5 percent of the world trade would result in enhancing our international trade from US $665 billion to US $ 2400 Billion in next 10 years requiring CARG (Compound Annual Rate of Growth) of 14.25 percent," Sakthivel said.

India's merchandise trade in 2009-10 was US$ 455 Billion while services are likely to be about 210 Billion (Assuming Services Exports of US $ 115 Billion and Imports of US $ 95 Billion). The world trade in 2020 is estimated to be of US $ 48 Trillion.