World Trade in Apparel and Textile

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 Content

1. Introduction
2. Indian Textile Industry
3. Export and Import data of Textile in India
4. Indian retail market

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Indian textile industry:-

The President of India, Smt. Pratibha Devisingh Patil, releasing the Commemorative Postage
Stamps on 'Textiles of India' at Rashtrapati Bhavan on December 10, 2009. Also
seen (from left to right) are the Secretary (Textiles), Minister of State for
Textiles, Smt. Panabaaka Lakshmi, the Minister of Textiles, Shri Dayanidhi Maran and
the Minister of Communications and Information Technology, Shri A. Rajathe
textiles industry also plays an industry has a direct bearing on the pivotal role
through its contribution to improvement of the economy of the nation. Industrial output,
employment generation, and the export earnings of the country. The Indian textiles
industry is extremely Currently, it contributes about 14 percent varied, with the hand-
spun and hand- to industrial production, 4 percent to the woven sector at one end of
the spectrum,GDP, and 17 percent to the country's and the capital intensive, sophisticated
export earnings. It provides direct mill sector at the other. The decentralized employment to
over 35 million people.

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Export and import of data of textile in India

India's textile exports declined by about 2 per cent in 2008-09 to USD 21.75 billion due to slump
in demand from global economies like the US and Europe which are reeling under the impact of
financial meltdown. During 2007-08, the exports stood at USD 22.13 billion. "The decline in
exports of textile is due to less demand from the US and European markets which are reeling
under recession," a Textiles Ministry official said. After growing at a healthy rate in the first six
months of the last fiscal, the textile exports started coming down since October and ended the
fiscal with an overall decline of 1.7 per cent. Among the textile exports, the worst hit was
handicrafts which saw a decline of 48 per cent in 2008-09 followed by cotton yarn and jute
products which fell by 11.8 per cent and 9.5 per cent respectively. The garment exports,
however, grew by a moderate 4.6 per cent to USD 10.13 billion during the previous fiscal.

Cotton:-

India, the world's second-largest cotton supplier, will allow cotton exports without mandatory
licenses from the next marketing year starting Oct. 1, a government order said Tuesday, likely
boosting the country's shipment and prices. But the contracts for cotton exports will have to be
registered with the Textile Commissioner before shipments are made, the government order said.
The government currently controls cotton exports by granting licenses for individual shipments
and gets an export tax of INR2, 500 per metric ton. "Exporters are going to be active, which
means the market is going to be strong. Ramani said the unrestricted export policy will boost the
supplies to China and Pakistan, which has been hit by floods. China is the largest importer of
Indian cotton by volume, accounting for more than 70% of shipments, followed by Pakistan,
Bangladesh and Thailand. India in May 2010 lifted the month-long ban on cotton exports, but
put in place stringent export rules by introducing a licensing system as the government wanted to
strike a balance between adequate cotton supplies to local mills and fair returns to farmers.
According to official data, traders shipped 7.38 million bales from Oct. 1 to July 31, boosted by a
recovery in global demand. Before the ban was briefly imposed in April, exporters had
contracted to ship 8.52 million bales. In the last marketing year that ended Sept. 30, the country's
cotton exports fell 60% from a year earlier to 3.5 million bales amid the global economic
downturn.

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Jute :

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0ilk:-

wool:-

Power loom:-

Decentralized Power loom Sector plays a pivotal role in meeting the

Clothing needs of the country. The power loom industry produces a wide
variety of cloth, both greys as well as processed. Production of cloth as well as
generation of employment has been rapidly increasing in the power loom sector. There
are 22.38 lack power looms in the country as on 31st December, 2009
distributed over approximately 5.03 lack units. This is about 60.39% of the total
looms in the world. The power loom sector contributes about 62% of the total cloth
production of the country, and provides employment to about 55.95 lack persons.

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 Weaving sector- level of technology in india and select countries, 1998:-

IMPORT0 OF MAN-MADE FIBRE / FILAMENT YARN

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|andicraft:

World¶s export:-

U.0. Export and Imports Of Textile And Clothing:-

India's export to U0A

USA is regarded as the largest textile and apparel market in the world, which amounts to over
$200 billion annually. In 2006, about 45% of the U.S. market demand was met with imported
products, which accounted for 20% of the overall global textile and apparel imports. In 2003, the

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total imports of clothing and textiles by USA was 80% (US $ 71 bn) and 20% (US $ 18 bn),
respectively. Asia contributed the most, specifically India. India basically supplied readymade
garments to USA.

Indian exports of textiles to EU (European Union)

EU overpowered USA as becoming the largest market for textiles and clothing in the world. Asia
predominates the EU market in both clothing and textiles, with 30% (US $ 30 bn) and 17 % (US
$ 8 bn) share, respectively. India is one of the leading suppliers of textile products to the EU

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market and ranked fourth, ahead of other textile exporters like Mexico, Bangladesh and Turkey,
with a market share of 5.2% (US $ 0.45 bn).

Current trend Industry sources reveal that India's textile exports are likely to fall short by over
16% from the expected target. This is happening because of an increase in value of money and
slowing down of investment. Shekhar Agarwal, chairman, Confederation of Indian Textile
Industry opines that in 2007, the textile exports in India will not surpass $ 20.5 billion mark,
witnessing a negative growth in exports, specifically in segments like garments. Garments
accounts for about half of the overall textile exports by India. Agarwal also expressed his doubts
about implementing the projected investment of Rs. 1, 94,000 crore in the 11th Five Year Plan
(2007-12). Source from Business Standard reveals that the Indian government is expected to
export around 20 % more raw cotton than before. Indian textile exports to USA and China are
growing rapidly. B.K. Patodia, chairman of India's Cotton Textiles Export Promotion Council,
expressed that China and India are speedily becoming the two biggest textile players in the
world. CRISIL (Credit Rating Information Services of India Limited), India's leading Ratings,
Research, Risk and Policy Advisory Company predicts that India's textile export earnings will
increase from USD 17 billion (FY 2006) to around USD 40 billion by FY(Financial Year) 2011.

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World Trade in Apparel and Textiles

J Textile 2. Clothing and 3. textile clothing

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Leading Apparel Exporter and Importer:-

Export pattern:-

China has surpassed every one!

J China- 33.4%
J EU- 29.9%
J |K- 8.3%
J Turkey- 4.1%
J Bangladesh- 2.9%
J India-2.8%
J ëietnam- 2.1%

Import Pattern:

J EU- 45.5%
J US-23.7%
J Japan- 6.7%
J Russia- 4.1%
J Canada- 2.1%
J Canada- 2.1%

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Leading Textile Exporter and Importer:-

Export Pattern:

J Export Union is largest- 33.9%

J China- 23.5%
J US± 5.2%
J Korea- 4.4%
J Taipei- 4.1%
J India- 4.0%

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Import Pattern:

J EU with 33.7% is the largest;

J US ± 9.6%
J China- 6.7%
J |ong Kong- 5.4%
J Japan- 2.5%

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 Indian Retail Market

Indian rural markets offer a sea opportunity for the retail sector.the urban-rural split in consumer
spending stands at 9:11, with rural india accounting for 55% of private retail consumption.

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Referances:

J www.texmin.nic.in
J www.commerce.nic.in
J www.wto.com
J 2008-09 annual report textile ministery of India

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