Shifting trends in apparel production,

Import & export between India & UK

Presented by:
Muskan Goswami
M.F.M 1
Contents
1. Shifting trends in apparel production – World & India
2. Bilateral relationship between India & UK
3. India’s import & export of products with UK
4. List of apparel products imported & exported
5. Taxation by India & UK
6. Conclusion
Shifting Trends in Material
Pinatex
 Pinatex is a natural textile made of pineapple leaves fiber.
These leaves are a side product of the pineapple harvest.
 Fibers are processed to produce a non-woven fabric that is an
alternative to leather.
MycoTEX
 MycoTEX is a textile made from mushroom’s mycelium, i.e.
fungal spores.
 Recently, clothing wear has been made from a flexible
version of the material by Dutch textile designer Aniela
Hoitink.
Grape Fabric
 A company called Vegea is using waste from the wine
industry such as grape stalks, seeds and skins to produce
leather which are chemical and animal free.
 The company is calling this as the VegeaTextile technology.
 In collaboration with H&M Foundation.
Grass Root
 A visual artist Diana Scherer created dresses, rugs, etc.,
made from plant roots.
 These dresses have an intricate, natural geometry.
Orange Fibers
 Orange fibers are created from orange waste.
 The fabric is obtained from a silk-like cellulose yarn that can
easily blend with other materials.
 It’s lightweight, soft and silky to touch. The overall look can
be opaque or shiny depending on the design requirements.
Shifting Trends in Technology
Blockchain
 Blockchain is a decentralised and distributed digital
record that offers new opportunities for managing
product safety, authenticity and ethical standards.
 The most obvious use of this technology in fashion is to
verify the originality of a garment through microchips
utilizing Blockchain.
 Example:
De Beers, the world's biggest diamond producer aims to
launch the first industry-wide blockchain.
Contactless Shopping
 These unmanned stores require no checkout, no cash
and no salespeople.
 Customers scan QR codes to enter the store and select
products, and then pay online.
 Sensors on the shelves detect the removal of items. Once
an item has been removed, it is linked to the shopper’s
unique ID in the smartphone app to prevent theft.
Examples:
Zara and Amazon Go store.
Artificial Intelligence (AI)
 AI is an area of computer science that emphasizes the
creation of intelligent machines that work and react like
humans.
 Fashion brands and retailers are using AI for forecasting,
capacity planning and merchandising while improving
product availability along with faster, more accurate
deliveries.
 A recent study shows that more than 75% of fashion retailers
plan to invest in AI in 2018-19.
 Examples:
myBataz and Findow.
Augmented Reality (AR)
 AR is blending of interactive computer-generated digital
elements into a real-world environment.
 AR is helping online shoppers with buying the right look
and size by a smart blended reality mirror overlaying
clothes on to the users image.
 This tool helps online retailers to reduce the number of
returned items.

Example: Myntra
Machine Learning (ML)

 When it comes to delivery, artificial intelligence and ML

capabilities are leveraged to find the best route and time
to deliver the package.
 Example:
Amazon India
Internet of Things (IoT)
 IoT is based on the concept of connecting any device to
the internet and to other connected devices.

Examples:
 Smart Watches – Samsung
 Smart Clothing– Polar Team Pro by Polar
Shifting Trends in Color
Evolution of color from 2017-18

SS17-SS18 FW17-FW18
Emerging Colors of Spring/Summer
2018-19
Shifting Trends in Colors

 Spring/ Summer colors – Lightest in 2017, Slightly

darker in 2018 and darkest in 2019.
 Fall/ Winter colors – Darkest in 2017, Slightly ligher in
2018 and lightest in 2019.
Shifting Trends in Apparel Export
Export of Apparel in 2016 & 2017

 In 2016 : The total dollar value of apparel exports was

$443bn. It decreased by 0.4% from 2015.
 In 2017: The total dollar value of apparel exports was
$454.5bn. It increased by 2.8% from 2016.
Shifting Trends in Materials of India
Bamboo Stick Ikat
 This fabric has anti-bacterial properties and natural UV
protection.
 It is biodegradable, non-toxic and inexpensive.
 It took 14 years of extensive research and testing to
create this fabric.
 It was introduced March 2018 by designer Madhu Jain.
Lotus Fibers
 It is made from stems of lotus.
 The fabric has a luxurious hand feel.
 It feels like a mixture of silk and raw linen which is stain-
resistant, light weight, soft, silky and extremely
breathable.
 Jaipur-based Hero's Fashion Pvt Ltd from India is making
white colored NoMark Lotus shirt.
Banana Fibers
 Woven and non-woven fabrics are made from the fibers
which are obtained from stem of the banana tree.
 The biodegradable fabric will be substantially cheaper
than cotton and linen, if produced in mass.
 One of the strongest natural fibers.
Ramie
 Ramie is a flowering plant and its leaves are made into fibers.
 It can be woven into lightweight fabrics which are great for humid
climates.
 It has stiffness like that of linen.
 Compared to silk, ramie is a stronger fabric and easier to work
with.

The dresses made of Ramie on display at the French ambassador’s residence during Bonjour India.
Bilateral relation between India & UK
 Bilateral relation between India & UK

 India and the United Kingdom share a modern partnership bound by

strong historical ties.
 In 2004, the bilateral relationship was upgraded to a strategic
partnership.
 In 2005, The Joint Economic and Trade Committee (JETCO) was
inaugurated in India, aimed at boosting two-way bilateral investments.
 In 2013, UK’s Prime Minister Mr. David Cameron formed a big trade
delegation by accommodating more than 100 representatives that varied
from multinational corporations, medium-to-small-sized corporations,
and universities to India.
 In 2015, the UK and India negotiated to double there trade
volumes as compared to the 2010 trade mission.
 In 2017: The two countries announced that they have agreed
to discuss a bilateral free trade agreement.
 In 2017: The High Commission of India in the UK, with the
support of the UK India Business Council, announced the
Access India Programme, a unique scheme set up to help
many more UK SMEs export to India.
India’s Import & Export from UK

The figures are in US Dollars.

Source: commerce-app.govt.in
Trade Balance of Apparel Products
Between India & UK
Source: trademap.org
Source: trademap.org
Source: trademap.org
Source: trademap.org
 Taxation in India: Import
 There are several factors that go into calculating customs duty,
including:
 Basic Customs Duty (BCD)
This duty is levied either as 1) a specific rate based on the unit of the
item (weight, number, etc.), 2) Based on the assessable value of the
item. In some cases, a combination of the two is used.
 Integrated Goods and Services Tax (IGST)
GST is applicable on all imports into India in the form of levy of IGST.
IGST is levied on the value of imported goods + any customs duty
chargeable on the goods.
 GST Compensation Cess
GST Compensation Cess is a levy which will be applicable in addition to the
regular GST taxes. GST Cess is levied on supply of certain notified goods –
mostly belonging to the luxury and demerit category.
 Anti-dumping Duty
This is levied on specified goods imported from specified countries,
including the United States, to protect indigenous industry from injury.
 Safeguard Duty
The Indian government may by notification impose a safeguard duty on
articles after concluding that increased imported quantities and under
current conditions will cause or threaten to cause serious injury to domestic
industry.
 Customs Handling Fee
The Indian government assesses a 1% customs handling fee on all imports in
addition to the applied customs duty.
Taxation in India: Export
The list of articles which are mentioned in The Second
Schedule- Export Tariff, are subject to export taxes.

Source: cbic.gov.in
 Taxation in UK: Import

To import in UK from outside EU, one requires to pay:

 VAT Customs Duty
 Excise Duty

To import in UK from outside EU:

 They are in free circulation, i.e. no customs duty is payable.
 Excise duties are not payable on goods traded between EU
member states, except on alcoholic products, tobacco
products, and energy goods such as fuel, heating oil, and gas.
Taxation in UK: Export
To export from UK to outside EU, one requires to pay:
 Minimum excise duty, as mentioned in EU legislation.

To export from UK to outside EU:

 No excise duty is applied. Except for articles containing:
Alcohol, tobacco and energy, as mentioned in EU legislation.
Conclusion
 Sustainable fabrics are being innovated across the world,
including India.
 Hassle-free technology is on a rise in the global fashion
industry.
 The forecasted colors for SS19-20 are darker than the previous
year & FW19-20 are lighter than the previous year.
 Export of apparel products is on a rise, globally.
 Bilateral ties between India & UK are strong in the present
times.
 The total value of India’s exports & imports with UK in the
apparel sector increased in 2016-17 as compared to 2015-16.
 References
 https://www.businessoffashion.com/articles/fashion-tech/5-technologies-transforming-retail
 https://www.biobasedpress.eu/2018/02/new-materials-as-a-source-inspiration-for-the-
fashion-industry/
 https://materialdistrict.com/article/mycotex-textile-mushroom-mycelium/#moved
 https://www.techpacker.com/blog/eco-materials-fashion-nature-victoria-and-albert/
 https://hackernoon.com/augmented-reality-ar-fashion-brands-gear-up-for-a-digital-
makeover-eb57cc738686
 https://shenglufashion.com/2018/08/16/wto-reports-world-textile-and-apparel-trade-in-
2017/
 https://www.gov.uk/goods-sent-from-abroad
 https://fashionunited.uk/news/business/6-sustainable-textile-innovations-that-will-change-
the-fashion-industry/2017100926194
 Promostyl book.
 https://www.vogue.it/en/fashion/trends/2018/01/12/the-ten-color-trends-for-spring-
summer-2018/
 https://www.export.gov/article?id=India-Import-Tariffs
 https://ec.europa.eu/taxation_customs/business/excise-duties-alcohol-tobacco-
energy/general-overview_en
Thank You!