MOSCOW: Indian textile exporters will target Russia and Japan as they are the most promising markets, Textiles Minister Shankersinh Vaghela said here on Tuesday after talks with Russian officials and businessmen.

Russia and Japan were identified as textile exports to the West had reached a saturation point, Mr. Vaghela told Indian journalists before leaving for Tokyo. Heis leading a delegation of textile industry officials, which toured Uzbekistan and Kazakhstan before arriving in Russia on Sunday on a three-day visit.

The Minister said he had discussed the setting up of an Indian trade house in Moscow and a Russian trade house in Delhi and the response from the Russian side was "overwhelming."

China competition

India dominated the Russian market of textile imports before the break-up of the Soviet Union. However, it has since been ousted by China. Last year, Indian textile exports to Russia amounted to only $16 million, down from $125 million a year earlier.

Mr. Vaghela said logistics was the biggest challenge to Indian exporters in Russia. Sea and land transport routes were long and airfares too expensive. At the same time he was confident that Indian textiles could well compete with Chinese textiles in the Russian market.

Indian textiles are often sold in Russia under Western trademarks. To increase their penetration, big Indian companies should build brand names in Russia but they are not interested and are happy with their exports to the West, say experts.

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