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THE STEPS TOWARDS FREEING INTERNATIONAL
TRADE SO FAR
ATC (Agreement on textiles and clothing – since 1995)
WTO (Member signatories removed quotas from Jan 1, 2005)
% to be brought under GATT
1.1. 1995 to 31.12.1997
1.1.1998 to 31.12.2001
1.1.2002 to 31.12.2004
Who can win?
The person who can produce
quality products at competitive
How to achieve?
Technological up gradation
Stringent control over quality
Sourcing new markets and introducing
new strategies in marketing
Own design & Brand development
The Indian scenario
OPINION OF TRADE EXPERTS ABOUT INDIAN TRADE
“OUR COUNTRY IS CONSISTENTLY LOSING EVERY OPPORTUNITY TO MEET
THE INTERNATIONAL FRATERNITY, TO IMBIBE GLOBAL WORK PRACTICES,
TO ACQUIRE GLOBAL VISION, FORM STRATEGIC ALLIANCE AND JOINT UNITS,
TO REACH OUT NEW CUSTOMERS, OR MARKETS, KEEPING ALOOF IN
INTERNATIONAL SEMINARS, CONVENTIONS, INDUSTRY FORUM.
IN CASE OF GARMENT INDUSTRY WE REPRODUCE THE DESIGNS GIVEN BY THE
BUYERS & NOT DEVELOPING OUR OWN STYLES AND DESIGNS.
PARAMETER / SECTOR
30 – 50%
15 – 18%
300 KG / HA
SHUTTLE LESS LOOM
EXPENDITURE ON R & D
TESTING OF MATERIALS
MANUAL VS. POWER MACHINES
580 KG / HA
90%ITALY 50% USA
85,800 CHINA 29,000 KOREA
1.5 TO 2%
MANUAL AND SEMI AUTOMATIC
31% : 69%
INTEGRAL PART OF THE SYSTEM
0.1% : 99.9%
AD – HOC
SYSTEMATIC AND INDUSTRY COMMITTED
LABOUR COST COMPARISON
Average cost per operator hour (in cents)
(COMPLED BY: WEMER, USA)
CHINA VS. INDIA TEXTILES – PRESENT STATUS
Œ VERY HIGH DISCIPLINE
VERY AVERAGE DISCIPLINE
Œ LOW POWER COST
HIGHER BY 54%
Œ LOW INTEREST COST
14.5% TO 18% AS AGAINST 6%
Œ HIGH MODERNIZATION
Œ SIMPLE REGULATIONS
COMPLEX AND COMPLICATED
Œ HIGHLY DEVELOPED INFRA-STRUCTURE
Œ EXIT POLICY
Œ STRONG RE-TRAINING
TOTAL ABSENCE OF TRAINING
ECONOMY OF SCALE UNIT
HIGH QUALITY PRODUCT
TARGET 40% OF WORLD SHARE
PROVIDING 15% BUT NOT REACHING EVEN 2%
Low productivity / high absenteeism
Highly regulated sector
PRODUCTIVITY - YIELD
Yield / hectare
APPAREL IMPORTS (MILLION US $)
% of share in world trade apparel
SOURCE WTO STATISTICS
INDIA’S Share of Market Segments
Exports to USA have gone down substantially by (-) 12.92% in value, and by (-)
6.01% in quantity terms. Canada has also registered a substantial loss of (-) 15.10%
in terms of value and (-) 16.93% in terms of quantity. EU has seen an decrease of (-)
4.87% in terms of value and a increase of 1.55% in terms of quantity. Non-Quota
countries have registered a decline of (-) 52.45% in quantity terms and of (-) 57.07%
in value terms.
Source – clothesline Jy / 01
PHASING OUT OF QUOTA
LACK OF TRAINING CENTRE
PHASING OUT QUOTA
ABSENCE OF QUALITY PROFESSIONALISM
Quality, Delivery,lead time
World class Manufacturing
Customer focus, quality, Agility
POSITIVE SIDE OF INDUSTRY
HAVING GREAT HOPE WITH EXISTING BUYERS &
STILL MAINTAIN THE GOOD RELATIONS
STARTED TO REALISE THE IMPORTANCE OF
TECHNICAL UP GRADATION
STARTED TO REALISE THE IMPORTANCE OF
TRAINED MAN POWER
VERY GOOD QUALITY, ENVIRONMENT & SOCIAL
ACCOUNTABILITY AWARENESS(ISO –9000,14000,
THE ROLE OF
THE NATIONAL TEXTILE POLICY
Aim to develop a strong and vibrant
industry that can produce cloth of good
quality at acceptable prices to meet the
growing needs of the people.
Compete with confidence for an increasing
share of the global market.
THE MAIN OBJECTIVES OF NATIONAL TEXTILE
To equip the industry to withstand pressures of
import penetration and maintain a dominant
presence in the domestic market.
Liberalize controls and regulations so that the
different segments of the industry are enabled to
perform in a greater competitive environment.
Enable the industry to build world class state – of
– the – art manufacturing capabilities in
conformity with environmental standards.
The National Textile Policy2000
The endeavor will be
To achieve the target of textile and apparel exports
from the present level of 11 billion dollar to $50 billion
by 2010 of which the share of garment will be $25
To assist the private sector to set up specialized
financial arrangements to fund the diverse needs of
To set up a venture capital fund for tapping
knowledge based entrepreneurs of the industry,
facilitate the growth and strengthen HRD institutions
like NIFT, NIFT-TEA, NID, etc., on innovation lines.
The Highlights of the Policy
The highly export oriented sector has been taken off
the SSI(small scale industries) reservation list,
enabling corporates to invest large amounts in
The deservation also enables free flow of FDI
(Foreign Direct Investment) to the extent of 100%.
This will prepare Indian garment exporters to face the
fierce international competition that is likely to ensure
once the export quota regime is dismantled.
In the light of 2004 regime the exporters are showing
Merchandisers, Production managers etc,
In the case of fashion designing, so far the industry
people are using the design supplied by the buyers.
Now the awareness of fashion designing is taken place
due to the brand promotion activities.
The new domestic brands are showing keen interest in
developing new designs.
Each and every day the new entrepreneurs are entering
in to the field.
Since the growth export sector is positive, the growth of
the industries which are concentrate the production of
accessories are also increasing.
Careers in Fashion Industry
Whole sale Trade
Opportunities in Fabrics and fashion
Opportunities in Fashion Illustration
Opportunities in Fashion Writing
Opportunities in Modeling
Production Manager, Supervisor
Prepared during 2004-2005