Post on 04-Apr-2018
7/31/2019 Exports India
1/22
Scenario of Garment Export Industry
in India
Presented by:
Shrishti DohareShruti SethSwati SehgalVandana SainYesha Bohra
7/31/2019 Exports India
2/22
Exports-India
India exports were worth 22443 Million USD in July of 2012
Exports amount to 22% of Indias GDP.
Gems and jewelry constitute the single largest export item, accountingfor 16 percent of exports.
India is also leading exporter of textile goods, engineering goods,
chemicals, leather manufactures and services.
Indias main export partners are European Union, United States,
United Arab Emirates and China.
Source :http://www.tradingeconomics.com/india/exports
http://www.tradingeconomics.com/india/exportshttp://www.tradingeconomics.com/india/exports7/31/2019 Exports India
3/22
Source :http://www.tradingeconomics.com/india/exports
http://www.tradingeconomics.com/india/exportshttp://www.tradingeconomics.com/india/exports7/31/2019 Exports India
4/22
Current scenarioIndia is the sixth largest exporter of readymade garments with 2.6 %
market share.
The apparel sector alone contributes to 8% of total exports of India.
For the entire textiles sector, the government has fixed a target of $40
billion for the current fiscal. In 201112, the countrys textiles exports
stood at $32.31 billion.
In the first two months of the current fiscal, garments exports jumped
30% to USD 2.3 billion year-on- year.http://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-
http://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.html7/31/2019 Exports India
5/22
Key Buyers
United States Of America
European Union
Canada
**USA & EU together account for around 65 per cent of Indias apparel exports.
Source: AEPC
7/31/2019 Exports India
6/22
Competitors
Ranked sixth
China
EU
Hong Kong
Turkey
Bangladesh.
With exports of US$ 18 bn, India is likely to fall behind Vietnam,
Indonesia and Mexico and rank ninth in the world.
7/31/2019 Exports India
7/22
New Market
After the demand slowdown in the country's traditional markets -
the US and Europe, exporters started exploring new buyers in Latin
America, Africa and Middle East countries.
The market diversification has yielded positive results.
Garment exports have increased from USD 2.7 billion in 2009-10 to
USD 3.15 billion in 2011-12Source:http://www.moneycontrol.com/news/business
/garment-exports-to-non-traditional-markets
7/31/2019 Exports India
8/22
Export Scenario-Still Grim
India's apparel exports stood at $1 bn, dropped 16.7% in July 2012-13
against same period last fiscal.
India's apparel exports in April-July 2012-13 stood at $4.2 bn, against $4.9
bn same period last fiscal.
Apparel imports of the US stood at $35.9 bn, declining .05% in January-
June 2012 as against the same period last calendar.
Source :http://economictimes.indiatimes.com
7/31/2019 Exports India
9/22
India's performance in that market fell 9.8% and reached $1.7bn in January-June 2012 against $1.9 bn in January-June 2011.
EU's apparel exports too fell during the period, declining 13%
in January-June 2012 over same period last calendar.
EU's exports stood at $39.1 bn in first six months of this
calendar.
Source :http://economictimes.indiatimes.com
7/31/2019 Exports India
10/22
Export Scenario-Still Grim
Indian textile industry hasnt reaped the full benefits of the sustained
fall in rupee against the dollar
Barring China, all others in the region are also passing through acritical phase, with their exports dwindling, but not definitely to the
extent that India suffered.
Textile Ministry has so far not been able to formulate a special policy
to meet the export challenges faced by Indian exporters
7/31/2019 Exports India
11/22
Reason for downfall
EU and the US, the worst affected nations in the current debt crisis
Western buyers preferring products from suppliers in close
proximity to the EU and the USTextile mills were caught off-guard by a fall in local yarn prices
after they had bought their main raw material, cotton, at high
prices.
They could not sell yarn locally at a profit nor could they ship out
products due to poor demand as well as export restrictions,
resulting in huge losses.
7/31/2019 Exports India
12/22
Measures
Restructuring of loans as well as interest subsidy to the garments
and knit-wear sectors grappling with the economic slowdown.
Extending many export promotion schemes for readymade garment
sector viz two per cent inter-subvention, two per cent Focus Market
Linked scheme to USA and European Union and enlargement of
countries under FMS/FPS.
7/31/2019 Exports India
13/22
..cont. Restrictions on exports of cotton and cotton yarn which lowered the rawmaterial prices.
Increasing the eligible limit of Export Credit Refinance (ECR) facility
from 15 percent of the outstanding export credit eligible for refinance to
50 percent.
Focusing on Free Trade Agreement (FTA) as apparel industry will gain
by enlarging bi-lateral trade and bringing stability in the region
7/31/2019 Exports India
14/22
Free Trade Agreement
On Aug 2012,India Signed a Free Trade Agreement with
EU.
Boost exports which have already declined by 48 per cent
in the first two months of the current fiscal.
EU imposes an import duty of 9.6 per cent per garmentand five per cent on other textile items from India which
will be abolished.
7/31/2019 Exports India
15/22
.cont .
AEPC signs MoU with Israel to boost apparel trade.
To target the Middle East Market Apparel Market,Apparel Export Promotion Council organized a BuyerSeller Meet in Tel Aviv, Israel from 5 6 September2012.
The MoU is aimed at enhancing trade and economicrelation by expanding business and cooperation in the
sphere of clothing & fashion industries,
7/31/2019 Exports India
16/22
India Market Days
Project approved by Ministry of Textiles and is funded under
the Market Access Initiative (MAI) Scheme of Ministry of
Commerce & Industry.
Inviting overseas buyers and buying agents.
Market Days is one of the endeavors for AEPCs export
promotion initiatives for the year 2012-13
Apparel exporters will generate good business deals with
buyers from the continent countries.
7/31/2019 Exports India
17/22
Apparel House, Gurgaon
The event will help the garment exporters find the right
partners for their business.
The last India Market Days event (July 2012) generated
the revenue of 58 lacs.
7/31/2019 Exports India
18/22
Current facts
Indias apparel exports to Japan have already jumpedsubstantially.The textiles ministry hopes to ride free trade deals
with Japan to target $50 billion in apparel exportsover the next three years from $18 billion targeted for2012-13.
Indias share of the $31.1 billion Japanese apparelimports worth is only 0.9 per cent at present.AEPC signs MoU with Israel to boost apparel trade
aimed at enhancing trade and economic relation.
7/31/2019 Exports India
19/22
The government has revised upwards the garmentexports target to $18 billion from $17 billion for2012 13 fiscal.
For the apparel sector, the market linked focusproduct scheme was extended till the end of thecurrent fiscal for exports to the US and theEuropean Union.
7/31/2019 Exports India
20/22
The US and Europe together account for over 65 percent of the countrys total textiles exports.
For the entire textiles sector, the government has fixed atarget of $40 billion for the current fiscal. In 2011 12,the countrys textiles exports stood at $32.31 billion.
Continuation of the Technology Up gradation FundScheme (TUFS) with an allocation of Rs. 15,886 crore for
the entire 12th Plan (201217).
7/31/2019 Exports India
21/22
References
http://economictimes.indiatimes.com www.moneycontrol.com/news/business/garm
ent-exports-to-non-traditional-markets . http://www.tradingeconomics.com/india/exp
orts
http://economictimes.indiatimes.com/http://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.tradingeconomics.com/india/exportshttp://www.tradingeconomics.com/india/exportshttp://www.tradingeconomics.com/india/exportshttp://www.tradingeconomics.com/india/exportshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://economictimes.indiatimes.com/http://economictimes.indiatimes.com/7/31/2019 Exports India
22/22