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APPAREL EXPORT PROMOTION COUNCIL

PRESENTATION BEFORE INDO-CROATIA JOINT COMMITTEE

APRIL 15, 2002

FEDERAL HOUSE

NEW DELHI

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THE INDIAN TEXTILE INDUSTRY AT A GLANCE

• Accounts for over 14% of the Industrial Production

• Second largest employment generator after agriculture

• Contributes around 5% of GDP

• Second largest spindleage in the world

• Third largest producer of cotton and second largest producer of cotton yarn

• Contributes over 30% to India’s 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

37.08 MILLION

SPINDLES AND 0.45 MILLION ROTORS

37.08 MILLION

SPINDLES AND 0.45 MILLION ROTORS

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CHANGING PROFILE

INCREASING INVESTMENT IN HIGH TECHNOLOGY SPINNING/WEAVING/ PROCESSING AND GARMENTING UNITS

RENEWED EMPHASIS ON QUALITY

INCREASING USE OF ‘INFORMATION TECHNOLOGY’

CONSOLIDATION OF THE VALUE CHAIN

EMERGENCE OF NEW ENTREPRENUERS

STRENGTHENING OF R&D, QUALITY

TESTING FACILITY, CAD-CAM / DESIGN

STUDIO

STRENGTHENING OF R&D, QUALITY

TESTING FACILITY, CAD-CAM / DESIGN

STUDIO

PRESENCE OF INTERNATIONAL TEST

HOUSES LIKE SGS, INTERTEK ETC.

PRESENCE OF INTERNATIONAL TEST

HOUSES LIKE SGS, INTERTEK ETC.

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EXPANDING PRODUCTION BASE

FIBRE AND YARNMillion Kgs

1995-96 2000-2001

Raw Cotton 2893 2380

Man-made fibre 498 904

Man-made filament yarn 493 920

Cotton yarn 1894 2267

Blended yarn 395 646

100% Non-cotton 196 247

FABRICSMillion Sq. Metres

Cotton 18900 19718

Blended 4025 6351

100% Non-cotton 8535 13606

FIBRE AND YARNMillion Kgs

1995-96 2000-2001

Raw Cotton 2893 2380

Man-made fibre 498 904

Man-made filament yarn 493 920

Cotton yarn 1894 2267

Blended yarn 395 646

100% Non-cotton 196 247

FABRICSMillion Sq. Metres

Cotton 18900 19718

Blended 4025 6351

100% Non-cotton 8535 13606

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RAW COTTONRAW COTTON

•COTTON IS THE PRE-DOMINANT FIBRE USED IN THE TEXTILE SECTOR. ACCOUNTING FOR 70% OF THE TOTAL FIBRE CONSUMPTION

•INDIA’S 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 INDIA’S TOTAL EXPORTS

YEAR TOTAL EXPORTS

TEXTILES & CLOTHING EXPORTS

SHARE

(%)

1998-99 141,604 44,821 31.65

1999-2000 162,738 48,812 30.00

2000-2001 202509 55242 27.28

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 Textiles13%

Ores & Minerals

3%

Marine Products

3%

Electronic Goods

2% Engineering Products

13%

Gem & Jewellery

22%

Readymade Garments

14%

Handicrafts2%

Agri-Allied Products

10%Plantation

2%

Chemicals & related

products14%

Others2%

Rest of Textiles13%

Ores & Minerals

3%

Marine Products

3%

Electronic Goods

2% Engineering Products

13%

Gem & Jewellery

22%

Readymade Garments

14%

Handicrafts2%

Agri-Allied Products

10%Plantation

2%

Chemicals & related

products14%

Others2%

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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

Readymade Garments

41%

Wool & Woollens

2%

Man-made Textiles

7%

Handicrafts16%

Cotton Textiles

29%

Silk3%

Jute1%

Coir1%

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INDIAN GARMENT INDUSTRY - CURRENT ENVIRONMENT & FUTURE PROSPECTS

• 12.5% share in India’s 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 2000-01.

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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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INDIA’S GARMENT EXPORTS TO CROATIA

QTY. (IN ‘000’PCS.) VALUE (IN ‘000’ US$)

1998-99 119 332

1999-2000 384 886

2000-01 117 272

Source: AEPC Certification data

The main item of exports from India to Croatia are T-Shirts, Ladies Blouses, Ladies Night Dresses, Babies Garment, Ladies Jackets, , Gents Shirts.

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During the last ten years India’s exports of textiles and clothing increased by 130%

INDIA’S SHARE IN WORLD TRADE

YEAR TEXTILES(%) CLOTHING(%)

1990 2.1 2.40

1995 2.90 2.60

1997 3.3 2.4

1998 3.0 2.6

2000 3.4 2.8

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India a significant player in cotton textile trade

Made ups : 9Processed fabric :13Grey fabric : 3Yarn : 6

World Trade in Cotton TextilesUS $ 31 Billion IN 1999

Overall Rank 2nd after China

Largest exporter of Cotton Yarn and second largest

In Made ups

EXPORT GROWTH 6%HIGHER THAN CHINA AND

PAKISTAN

INDIA

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Exports of Cotton Textiles to Croatia

Value : Rupees Million

2000-2001 April – September 2001-2002

Yarn 3.86 2.70

Fabrics 12.09 4.09

Made ups 28.50 26.21

TOTAL 44.45 33.00Source : DGCI&S

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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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INDIA’S 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 July’2002 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 MATHURDIRECTOR, AEPC

& SUNEEL ARORA

UNDER SECRETARY, GOVT OF INDIA

MINISTRY OF TEXTILES

TEL: 0091 11 6187630FAX: 0091 11 6106683

E-MAIL: hoadepd@nda.vsnl.net.in