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APPAREL EXPORT PROMOTION COUNCIL

PRESENTATION BEFORE INDO-CROATIA JOINT COMMITTEE

APRIL 15, 2002 FEDERAL HOUSE NEW DELHI

THE INDIAN TEXTILE INDUSTRY AT A GLANCE

Accounts for over 14% of the Industrial Production

Second largest employment generator after agriculture 37.08 MILLION Contributes around 5% of GDP SPINDLES AND 0.45 Second largest spindleage in the world MILLION ROTORS Third largest producer of cotton and second largest producer of cotton yarn Contributes over 30% to Indias export basket Top exporter of cotton yarn in the world - share of 25% in the world trade Flexible production systems Long tradition of excellence in textiles
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CHANGING PROFILE
INCREASING INVESTMENT IN HIGH TECHNOLOGY SPINNING/ WEAVING/ PROCESSING AND GARMENTING UNITS

RENEWED EMPHASIS ON QUALITY

STRENGTHENING OF R&D, QUALITY TESTING FACILITY, CAD-CAM / DESIGN STUDIO PRESENCE OF INTERNATIONAL TEST HOUSES LIKE SGS, INTERTEK ETC.

INCREASING USE OF INFORMATION TECHNOLOGY CONSOLIDATION OF THE VALUE CHAIN EMERGENCE OF NEW ENTREPRENUERS

EXPANDING PRODUCTION BASE

FIBRE AND YARN
1995-96 2893 498 493 1894 395 196
Million Kgs 2000-2001 2380 904 920 2267 646 247

Raw Cotton Man-made fibre Man-made filament yarn Cotton yarn Blended yarn 100% Non-cotton

FABRICS
Million Sq. Metres Cotton Blended 100% Non-cotton 18900 4025 8535 19718 6351 13606

RAW COTTON
COTTON IS THE PRE-DOMINANT FIBRE USED IN THE TEXTILE SECTOR. ACCOUNTING FOR 70% OF THE TOTAL FIBRE CONSUMPTION INDIAS SHARE IS 14% IN WORLD PRODUCTION AVAILABILITY OF VARIETIES LIKE SHORT/MEDIUM/LONG /EXTRA LONG STAPLES ( Ranging from 18mm to 35 mm)

MAN MADE FIBRE

ADDITIONAL CAPACITIES GENERATED IN POLYESTER FIBRE FILAMENT YARN PRODUCTION INCREASED SIGNIFICANLY

APPAREL
INCREASE PRODUCTION BASE RAPID GROWTH IN EXPORTS
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SHARE OF TEXTILE & CLOTHING EXPORTS IN INDIAS TOTAL EXPORTS

YEAR

TOTAL EXPORTS

TEXTILES & CLOTHING EXPORTS 44,821 48,812 55242

SHARE (%) 31.65 30.00 27.28

1998-99 1999-2000 2000-2001

141,604 162,738 202509

TEXTILES AND CLOTHING IS THE LARGEST FOREIGN EXCHANGE EARNER

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SHARE OF EXPORTS OF VARIOUS CLASSIFIED SECTORS

( Ministry of Commerce Report 1999-2000)

Rest of Textiles 13% Readymade Garments 14% Electronic Goods 2%

Handicrafts 2%

Plantation 2%

Agri-Allied Products Marine 10% Products 3% Ores & Minerals 3%

Engineering Products 13%

Chemicals & related products 14%

Others 2%

Gem & Jewellery 22%

HIGHEST EXPORTS FROM TEXTILE SECTOR

Readymade garments occupies first position among textile exports. 41% export share during 2000-2001 in textiles. Source : Ministry of Textiles Annual Report - 2000-01.
EXPORTS OF TEXTILES 2000-2001 Coir Wool & Man-made Silk 1% Woollens Textiles 3% Jute 2% 7% 1% Handicrafts 16% Readymade Garments 41% Cotton Textiles 29%

INDIAN GARMENT INDUSTRY - CURRENT ENVIRONMENT & FUTURE PROSPECTS

12.5% share in Indias commodity export basket. Represents value added sub-sector. Less import sensitive. 7% of Industrial production. Export target of US$ 25 billion by 2010. Future employment generation: Additional 6 lakhs jobs by 2005.
Source: Draft report of readymade garments for X Five year plan, National Textile Policy 200001. 10

STRENGTHS IN GARMENT SECTOR

Low Labour Cost Strong cotton raw material base Emergence of buying houses in India Increase in capital investments

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INDIAS GARMENT EXPORTS TO CROATIA

1998-99 1999-2000 2000-01 Source: AEPC Certification data

QTY. (IN 000PCS.) VALUE (IN 000 US$) 119 332 384 117
The main item of exports from India to Croatia are TShirts, Ladies Blouses, Ladies Night Dresses, Babies Garment, Ladies Jackets, , Gents Shirts.
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886 272

 During the last ten years Indias exports of

textiles and clothing increased by 130% INDIAS SHARE IN WORLD TRADE

YEAR 1990 TEXTILES(%) 2.1 CLOTHING(%) 2.40

1995 1997 1998

2000

2.90 3.3 3.0

3.4

2.60 2.4 2.6

2.8
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India a significant player in cotton textile trade

World Trade in Cotton Textiles US $ 31 Billion IN 1999 Made ups : 9 Processed fabric :13 Grey fabric : 3 Yarn : 6 INDIA

Overall Rank 2nd after China Largest exporter of Cotton Yarn and second largest In Made ups

EXPORT GROWTH 6% HIGHER THAN CHINA AND PAKISTAN

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Exports of Cotton Textiles to Croatia

Value : Rupees Million

2000-2001 Yarn Fabrics Made ups TOTAL

Source : DGCI&S

April September 2001-2002 2.70 4.09 26.21 33.00

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3.86 12.09 28.50 44.45

MAJOR MARKETS FOR INDIAN TEXTILES AND APPAREL

USA ,UAE UK ,GERMANY FRANCE, RUSSIA ITALY, CANADA BANGLADESH ,JAPAN

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INITIATIVES TAKEN BY THE GOVERNMENT TO MAKE THE INDUSTRY GLOBALLY COMPETITIVE

Setting up

of US $ 6 Billion Technology Upgradation Fund for modernising the entire value chain of the industry

Launching of a Technology Mission on Cotton to improve the quality and productivity of raw cotton Setting up of Special Economic Zones and Textile & Apparel Parks Opening up of Textile Sector for Foreign Direct Investments Progressive reduction of import duty on textile machinery and products

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INDIAS VISION
PROACTIVE TEXTILE POLICY DOUBLING OF PRODUCTION OF COTTON AND MAN MADE FIBRE THRUST ON EXPORTS OF VALUE ADDED PRODUCTS US $ 50 BILLION EXPORTS BY 2010
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AREAS OF CO-OPERATION
Explore opportunities for export of Cotton Yarn & Finished Fabrics to support Croatian apparel industry Greater collaboration in producing finished articles & processed goods in Croatia Collaboration in WTO issues like market access & anti-dumping etc. Visit of buying delegations and promotion of exclusive textile shows in India and Croatia Croatian manufacturers to participate in Tex-Styles India and Heimtextile India
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AREAS OF CO-OPERATION (Contd..)

Croatian importers of readymade garments visit India International Garment Fair scheduled to be held from 19-21 July2002 at Hall No. 10 & 11, Pragati Maidan, New Delhi for Spring/Summer Collections and from 17-19th Jan.2003 for Autumn/Winter collections. India can help in setting-up of Apparel Training and Design Centres in Croatia. AEPC can organise Buyer-Seller-Meets in Croatia to explore the possibilities for trade between Indian garment exporters and Croatian buyers.

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THANK YOU
Presented by:
VIJAY MATHUR DIRECTOR, AEPC & SUNEEL ARORA UNDER SECRETARY, GOVT OF INDIA MINISTRY OF TEXTILES TEL: 0091 11 6187630 FAX: 0091 11 6106683 E-MAIL: hoadepd@nda.vsnl.net.in

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