1. THE INDIAN TEXTILE INDUSTRY and ITS RELATIONS WITH European Union Presented by:- Pallavi Gupta 500901036 ShrayJali 500901062 Sumit Sharma 500901063
2. Roadmap of the Presentation Why did we choose the Indian textile industry? SWOT Analysis of Indian Textile Industry Agreements related to textiles Government initiatives European Union India- EU trade relations Conclusion
3. Why Indian Textile Industry? Sunrise Sector The textile industry is the one of the largest industries of modern India as it contributes about 14 % to industrial production, 4 % to the country's GDP 17 %to the country’s export earnings 12% share of the country's total exports basket [Source: Annual Report 2009-10 of the Ministry of Textiles] Single largest employer in the industrial sector employing over 35 million people
6. Vision To ensure the growth of the Indian textile industry at 16 percent per annum in value terms, to US$ 115 billion, by the end of the Eleventh Five Year Plan (2007-2012) To secure a 7 percent share in global textile trade by the end of the Eleventh Five Year Plan. Source: planningcommission.nic
7. Catalysts for exponential growth Buoyant Domestic economy Substantial increase in cotton production Government Policies TUFS Quotas Expiration of MFA on 31st Dec’ 2004
8. Problems and Challenges Sickness Obsolete Technology Cotton grown per hectare of land is very low Competition from man-made fibers
10. Export Promotion Councils Apparel Export Promotion Council (AEPC) Sponsored by Ministry of Textile Monitors Quotas and conducts trade fairs Cotton Textile Export Promotion Council Autonomous, non-profit export promotion council International face of Indian textile Handloom Export Promotion Council Statutory body Indian Silk Export Promotion Council
12. Strengths Independent and self-reliant Vertical and horizontal integrated textile value chain Globally competitive spinning industry Low wages Unique strength in traditional handlooms and handicrafts
13. Weaknesses Highly fragmented and technology backward textile processing sector Except spinning, all other segments are predominantly in decentralized sector Rigid labour laws Infrastructural bottlenecks in terms of power, utility, road transport, port handling capacities etc. Higher taxes and interest rates
14. Opportunities Large potential domestic and international market Revolution in organized retailing Increased disposable income Availability of cheap finance Emerging retail stores and malls
15. Global recession triggered by a weakening dollar Higher competition from China, Pakistan, Bangladesh Non-availability of indigenous textile machinery. Lack of domestic capital
46. Launched to create new textile parks of international standards. Merging of APE & TCIDS Objective:to provide the industry with world-class infrastructure . SITP
48. Birth of European Union After the second world war, Politicians in several countries of Europe were convinced that the only way prevent another war in Europe is to unite the countries economically and politically
50. Characteristics of European Union Single currency managed by European Central Bank (12/27 members) Free movement of persons, goods, services and capital Common Agricultural, Trade, Fisheries, Foreign and Security Policy
72. EU Textile and Clothing export figures, exports have decreased by 17% with a decline of textile exports by 18% and by 16% of clothing exports.
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74. Present status of doing business with central and Eastern Europe, according to industry response:-
75. Plans for exporting the EU, Of the companies that are not presently exporting to the EU , 85% intent to export to this region in the near future. European Union-An important export destination
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77. Present status of doing business with central and Eastern Europe, according to industry response:-