``Following sustained negotiations with EU authorities in Brussels regarding extension of exceptional flexibility quota to our exporters, we are sure, the outcome to be shortly announced, would be in our favour,'' textiles secretary Shyamal Ghosh said.

Under the `exceptional flexibility' quota, Indian garment exporters would be able to switch over from a quota in favour of a particular item which commanded greater premium and unit value realisation. In the absence of such a facility for the Indian exporters, New Delhi's exports to the European countries had been affected in recent years.

EU had also linked granting of the exceptional flexibility quota to India to binding of tariffs on various textile items by New Delhi under a bilateral agreement. Ghosh told PTI that a textile ministry delegation which held negotiations with EU officials in Brussels last week was successful in clearing the apprehensions of EU member countries regarding binding of tariffs on various textile items announced by India in December 1999.

``There are still certain grey areas on tariff binding with the EU that we will have to clear and the flexible quota is expected to be announced by March,'' he added. The Apparel Export Promotion Council (AEPC) director- general Rajiv Takru said the delay in extending the quota flexibility to exporters were due to the inherent conflict of interest among the EU member countries. Interest of countries like Portugal, an EU member and exporter of garments, was likely to be hit by granting of the flexible quota facility to India, he said.

Inaugurating the 24th edition of India International Garment Fair here, textiles minister Kashiram Rana said exports of readymade garments for the calendar year 1999 had recorded a six per cent increase over the previous year 5.23 billion dollars.

The value of readymade garments made up for 14 per cent of the country's total export revenue but represented only 2.75 per cent of the global market, he said. Rana asked the industry to become a multi-locational and a world class player in all respect by forging strategic alliances for accessing new markets and state-of-the-art technology.

Ghosh said it was important for Indian garment industry to analyse its strength and weaknesses in the context of the regional trading agreements and explore offshore opportunities. ``We need to constantly scan the global development in the arena of textiles and evolve measures to enhance our share in the global market,'' he added.

Despite the great potential for FDIs in the domestic textile sector, FDI inflow from 1991-92 till date was a meager Rs 3,000 crore, constituting just 1.5 per cent of the total foreign investment inflow into the country.