The Indian Textile Industry is growing at 20% and accounts for 4% of Indias GDP. It contributes 14% to the Industrial Production and employs about 35 million people. It accounts for 21% of India Gross Export Earning. Foreign direct Investment (FDI) inflows worth 681.59 million have been received by the industry between Aug. 91 and May 06, accounting for 1.29% of Total FDI inflows in the country.


EXPORTS OF TEXTILES:


During 2005 06, the Share of textile exports, including handicrafts, jute and coir, in countrys total exports was 16.63%. The textile exports, as per directorate General of commercial Intelligence & Statistics (DGC1 & 3), Kolkata, have registered strong growth in the post quota, increasing US $ 14.03 billion in 2004 05 to Us & 17.08 billion in 2005 06, recording a growth of 21.76%. Therefore, the Govt. has fixed a higher target of US $ 19.73 billion for 2006 07.


According to US knit Apparel Imports (2003 05) India contributes 2.8% share in the total share. In that share, India compete with Pakistan (2.8%), Cambodia (2.6%), Thailand (2.9%), Indonesia (2.6%), Philippines (2.5%)


The momentum has sustained in 2006-07, and as per provisional figures of DGCI & S, the textile experts during April October 06, are up by 6.47% in dollar terms over exports during the corresponding period of the previous year.


Indian Textile Exports Consists of:-

  • Cotton yarn and Fabrics
  • Man-made yarn and Fabrics
  • Wool and Silk Fabrics
  • Made-ups and a variety of garments, Knitwear
  • Woven and Silk besides handmade.


INDIAN EXPORTS:


Benetton, the worlds leading apparel manufacturer and marketer, makes 130 million garments annually with a turn over of 1.42 billion.


Exports from the country will touch 8.75 billion in 2007 08, up from 15 billion expected in the fiscal just ended 2006 07.


Major exports destination for Indias textile and apparel products are the US and EU, which together account for over 75% of demand. Exports to the US have further increased since 2005, post the termination of the MFA (Multi Fibre Agreement). Analysis of trade figures by the US census Bureau Shows that post MFA, imports from India into the US have been nearly 27% higher than in the corresponding period in 04-05.


TEXTILES AND HANDICRAFTS:


The value of textile exports was estimated at Rs.41, 373.98crore compared with Rs.37, 543.63crore in the correspond period of the previous year, recording a growth of 10.20 per cent. The export of readymade garments, cotton, yarn, fabrics, made ups, etc. Manmade textiles & made ups and coir & coir manufacturers recorded a growth of 8.08%, 12.69 per cent, 18.81% and 7.74 per cent respectively. Export items of handicrafts include metal Artware, textiles (Hand pretended), wood wares and Zari goods. Exports of handicrafts declined to Rs.874.37cr from Rs.1, 265.81cr during the corresponding period of the previous year registering a negative growth of 30.92%. Export of carpets increased to Rs.2, 331.38cr from Rs.2046.39cr during the same period last year registering a growth of 13.93%.







 

SECTOR-WISE ANALYSIS


READYMADE GARMENTS:


The readymade garments account for approximately 45% of the textile exports. This item covers readymade garments of cotton, man-made fibre and other textile material, and excludes readymade garments of silk or wool.


During 2004-2005, readymade garments exports were US $ 6 billion, up by 4.1% over 2003-2004. During 2005-2006, the readymade garments were US $ 7.75 billion, recording an increase of 28.68% over 2004-05. During April & October 2006-2007, the readymade garments exports were US $ 4.45 billion, up by 3.80% over corresponding period of 2005-06.


COTTON TEXTILES INCLUDING HANDLOOMS:


The cotton textiles which include yarn, fabrics and made-ups constitute more than two-third of textile exports of all Fibres/Yarns/Madeups. During 2004-05 cotton textiles exports, including handlooms, were US $ 3.54 billion, down by 1.55% compared with the corresponding period of 2003-04. During 2004-05 the cotton textiles exports were US $ 4.45 billion, recording a healthy increase of 26.78% over 2004-05. During April & October 2006, the cotton textiles exports, including handlooms, were US $ 2.73 billion, increasing by 16.34% as compared to exports during the corresponding period of 2005-06.


MAN-MADE TEXTILES:


During 2004-05 man-made textiles exports, were US $ 2.05 billion, up by 12.6%. During 2005-06 the man-made textiles exports, were US $ 2.00 billion, down by 2.47% compared with exports during the corresponding period of 2004-05. During April & October 2006 man-made textiles exports, were US $ 1.30 billion, recording an increase of 13.52%.


SILK TEXTILES:


During 2004-05 silk textiles exports, were US $ 0.59 billion, recording a growth of 9.0% and in 2005-06 they were Us $ 0.69 billion, up by 16.36% over 2004-05. During April & October 2006, the silk textiles exports were US $ 0.38 billion, down by 3.45% over the exports during the corresponding period of 2005-06.


WOOL AND WOOLEN TEXTILES:


During 2004-05 the woolen textiles exports, were US $ 0.42 billion, up by 23.4%, compared with the corresponding period of 2003-04. During 2005-06 the woolen textiles exports, were US $0.47 billion, recording an increase of 13.63% over 2004-05. During April & October 2006, the woolen textiles exports were US $ 0.28 billion, down by 5.37%, over the exports during the corresponding period of 2005-06.

HANDICRAFTS INCLUDING CARPETS:


During 2004-05 the handicrafts exports, including carpets were US $ 1.01 billion, down by 6.6%, compared with the corresponding period of 2003-04. During 2005-06 the handicrafts exports, were US $1.24 billion, up by22.24% over the exports during 2004-05. During April & October 2006, the handicrafts exports, including carpets were US $0.699 billion, down by 7.52%, over the exports during the corresponding period of 2005-06.


COIR AND COIR MANUFACTURER:


During 2004-05 the coir exports, were US $ 0.106 billion, up by 35.7%, compared with the corresponding period of 2003-04. During 2005-06 the coir exports, were US $0.134 billion, up by 27.19% over the exports during 2004-05. During April & October 2006, the coir exports were US $0.081 billion, up by 2.95%, over the exports during the corresponding period of 2005-06.


JUTE:


During 2004-05 the jute textile exports were US $0.276 billion, up by 14.0%. During 2005-06 the jute textile exports, were US $0.295 billion, up by 6.04% over the exports during 2004-05. During April & October 2006, the jute textile was US $0.169 billion, recording a decline of 2.59%, over the exports during the corresponding period of 2005-06.


 

Summary:


As per the DGCI & S Data during 2005-06 The European Union (EU) and the USA accounted for about 62% of Indian textiles Exports. The USA is a single largest destination of Indian textiles exports with a share of over 26%. The other major markets for Indian textile exports are UAE, China, Canada, Bangladesh, Saudi Arabia and Japan.


During January-July 2006, as per EUROSTAT Data, Indias position in the EU textiles & clothing markets, with a share of 8.1% was third after China and Turkey. During calendar year 2006 as per US department of Commerce, census bureau, foreign trade division. Indias position was third after China and Mexico in the US textiles and clothing markets with a share of 5.78%.


In this year Indian Govt. offers various supports to textile industry for its higher growth rate. Still Govt. promotes this industry in the way of,

Upgrade technology through the Technology Up-gradation Fund Scheme (TUFS);


  • By setting up of Apparel Parks.
  • By clearing off bottlenecks in the form of regulatory practices.
  • By replacing the indirect taxes with a single nationwide VAT.
  • With liberalization of contract norms for textile and garments units.
  • By controlling export of raw materials.
  • By curtailing the drawback claims falsely boosted invoice value of exports.
  • By effectively installing a price discovery mechanism to track market trend to take effective measures before hand a slump.


By the Govt. invest high in this industry to uphold it and it reacts to reach the textile vision 2010 with the help of Technology up gradation fund, Cotton technology mission and Integrated textile parks and etc.,


It requests the industrialist to utilize those opportunity and reach top of the global trade. It hopes well reach our vision 2010 healthily with good atmosphere.



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