'Excerpts from the presentation given before Deputy Chairman of the Planning Commission Mr.Montek Singh Ahluwalia'

Global textile & clothing industry is worth US$ 584 billion where clothing share accounts for 60% of share. Global trade is expected to grow to US$ 710 billion by 2010. Whereas, bulk of the increase is expected to be in Clothing, projected to grow to US$ 470 billion. The US market alone accounts for US$ 84.85 billion of apparel exports.

Textile & apparel sector, alone, accounts for 14% of the total industrial production. This sector holds the second largest position after agriculture in employment generation. Apparel sector alone employs 60 lakhs people directly and indirectly. Apparel exports contribute around 8% to India's overall exports and 48% to textile exports.

Indias apparel exports to top six countries:

Immediate Challenges and Impact of Recession:

• Nearly 5, 00,000 people have already lost jobs due to falling sales and Global Economic Recession.
• Another lot of 5, 00,000 will lose work by March 09 as per the survey in select clusters.
• In the next 2 months, the job losses will total of upto 1.5 million.
• Some exporting companies are reducing working hours, implementing 5 days a week instead of 6 days which resulted in reduced income levels of workers.
• Tirupur Exporters Association (the initiator of Knitwear technology Mission) too found out that the slowdown may lead to a decline of 30% in orders resulting in job losses.
• As per the survey done by Okhla cluster shows 84% units register fall in export orders and employment.
• The survey did during the month of November 2008 within the 50 units. The findings are as follows
1. 9084 workers employed
2. 1258 job loss
3. 13.84% extent of layoff
4. 4593582 pcs. Order booked in Nov'07 to Jan'08
5. 3464812 pcs. Order booked in Nov'08 to Jan'08
6. 25% reduction in order booked during the same period

Garment Export expanding despite global recession

Bangladesh becomes an exception that it is challenging India in apparel sector. Bangladesh's export of apparel is more than the India's export of apparel. During the period of 2007-08 Bangladesh's export accounted for US$ 10700 million.

Bangladesh's export is projected to grow during June'08 to July'09 is US$ 16.30 billion. Employment increased to 2.5 million, terminal handling by customs improved down to 3 days from 12-13 days. Also price offered by Bangladesh to buyers for T-Shirts down by 20% from US$ 1.63/pc in 2000 to US$ 1.30/pc in 2007.