Friends, New Year has commenced. If we look back, we would find that 2011 was not good or industry due to several reasons. The garment industry in India is basically governed by micro, small and medium enterprises (MSMEs).The industry contributessignificantly towards manufacturing output and exports. This sector faced several challenges throughout the year, with the situation worsening as the months went by.High depreciation in rupees against Dollar, high interest rates, rising cost of raw materials, slowdown and tough competition both in domestic and foreign market were hunted throughout the year. Rising competition with China was also major concern due to cheap import from China. During 2011, Not only China but also Vietnam, Bangladesh and Indonesia had given tough competition. Moreover, Government apathy towards the textile industry made the situation even worse by restricting export of cotton and yarn, imposing excise duty on branded garment and no control over inflation.An industry expert said manufacturers were forced to raise the prices of their products by up to 30%, which further reduced demand for their products globally and domestically. Data showing that more than 1 lakhs textile worker lost their jobs due to closure of units. The total textiles production was reduced to about 55,000 million square metres in 2011 from 70,000 million square metres compared last year.

What’s store in 2012 is a big question but industry players are very much optimistic.The entire textile value chain is currently coming on track. The recovery will hopefully pick up speed in 2012 as some new countries like UAE, Brazil, Argentina and Russia have started emerging in the market. And also the rising interest rate scenario is near to its end, high inventory position coming down and yarn prices improving, the Indian textile industry is expected to perform better in 2012.With this optimistic view, a veryjoyful, successful, colourfulnew year to all of our readers.