A critical growth hurdle for this industry is the prevailing labor laws and trade unions. Since the beginning of pervasive economic reforms in 1991, successive governments have been wary of taking on the trade unions by reforming labor laws. The garments industry is labor-intensive and subject to highly seasonally fluctuating demand, and therefore need flexible labor laws.Another impediment that requires immediate is the sorry state of infrastructure in India.

From shipments that are delayed due to the congestion at Indian ports, the sordid condition of roads from the manufacturing outlets to the shipment points that lead to consignments stranded in broken-down vehicles, traffic hold-ups at the numerous octroi collection centres-none of these problems seem to plague other countries as much as they do India.

The per-unit cost in India prevailing, is higher than in China but India has the ability to forestall the Chinese cost dragon through:

• Uniting manufacturing units and high technology equipment to ensure economies of scale and lower unit prices.
• Mark-ups of 20 per cent to 25 per cent of the FOB prices, arising out of the odious 'premium cost' to acquire quotas from those who had them, which disappears with the abolition of quotas.
• On the ground of anyone or survivor with individual capability
• Reduce the 'hidden costs' - import license, inland freight movement, octroi malpractices, etc.

Another not so obvious blessing is that China is a large-scale manufacturer and focuses on bulk manufacturing of basic apparel category. Thus they lack flexibility to produce medium to small orders and may not be able to customize according to need. They also fall behind in the value added fashion segment. All such orders that it received were hitherto farmed out to Hong Kong or Taiwan which might not be as easy as earlier. MK Panthaki, director, Clothing Manufacturing Association of India, says, "Whether these countries will oblige China in the post-quota regime is a moot question."

Many are hopeful that China has reached its peak and its economic growth momentum could be affected by temporary shortages of power and labor. Though temporary, as the government has already introduced tightening policies in late April, it could well affect an increase in cost of production. And slow the pace of investment and production.

Garment manufacturers in India will need more than production efficiencies to survive in the years ahead. Professionalism to undertake competitive marketing, focused and consistent positioning, and most of all, a keen understanding of fashions and trends to correctly anticipate future demand without quotas, are all key attributes that the industry needs to develop.

The General Populace: what do they want?

While well-known designers often hold shows to promote their new collections, the IFW gives an opportunity to new designers to display their collection alongside the titans of the fashion industry. The India Fashion Week also promotes the business interests of the fashion industry by attracting buyers from fashion houses across the world. The IFW is now changing the face of the Indian fashion industry, with its yearly presentation.

There is a definite transition in the style of clothes being presented fashion designs presented at the IFW, since its inception. Compared to about four years back, the emphasis now is on Indian-ness and adding an ethnic touch. There is a lot of attention paid to the cut and pattern of clothes, which have a fine balance of the Western and the Indian. The look is subtly Indian. It's 'in' everywhere and has brought in offers from international business houses. Buyers from the Middle East, Israel and big names from both Europe and US were present at the IFW. Business for the Indian fashion industry is beginning to look encouraging.

Fashion in India has come to connote big established names, having signature styles and patterns along with exorbitantly expensive products, which remain out of reach for most people. The clothes exhibited tend to be creative, but border on the bizarre and are rarely suitable for donning off the ramp.

Thus besides being competitive and techno savvy, the Indian garments industry need to be market friendly too.