1. Textiles including Readymade Garments
Presentation by:

2. Role of T&C Industry in Indian Economy
• Textile and Clothing (T&C) Industry constitutes 4% of
India’s GDP, 14% of Industrial Production and 14% of
total exports of goods.
• Second largest employer after agriculture : Provides
direct employment to over 35 Million people and
indirect employment to 45 Million.
• T&C sales generated US $ 55 Billion in 2008-09: US $ 33.4
billion from domestic market and US $ 21.6 billion
from exports.
2

3. Strong Fundamentals
• Strong and diverse raw material base
• Globally competitive spinning industry
• Strong presence in textile value chain from raw material to
finished goods
• Unique blend of tradition and technology
• Flexible production system and strong entrepreneurial skills
• Diverse design base
3

4. Fibre Production
% Share
 Strong and Diverse Raw Fibres Production
in Rank
Category during 2008
Material Base - world
The largest producer of Jute Jute
(Jute, Kenaf 1.7
and allied 56% 1
Billion Kgs
2nd largest producer of Cotton fibres)
2nd largest for Silk Cotton
5.0
22%
2
Billion Kgs (china-30%)
2nd position for Cellulosic
17 2
fiber/yarn Silk 13% (china-82%)
Million Kgs
 4th largest producer of
Cellulosic 0.33 2
synthetic fiber /filaments 12%
Fibre/Yarns Billion Kgs (china-45%)
Synthetic 2.4 4
6%
Fibres/Yarns Billion Kgs (china-48%)
Bracket figures are % share in the world by first rank country Source: CITI estimates 4

5. In Bracket first rank country Source: TMF report 2008

6. Fabrics Production
Production of Fabrics (Billion Sqr Mtrs)
CAGR
2004-05 2005-06 2006-07 2007-08 2008-09 (2004-09)
20.7 23.9 26.2 27.2 26.9 6.8
Cotton
6.0 6.3 6.9 6.9 6.8 3.2
Blended
Non 18.0 18.6 19.5 21.2 20.5 4.0
Cotton
44.7 48.8 52.7 55.3 54.2 5.2
Total
Non Cotton & Blended Fabrics equal cotton fabrics production
Source: O/o Textile Commissioner, Mumbai 7

7. Readymade garments accounts for half of
textile exports
 India is projected to secure a 7% share in global textile
trade.
 India’s total textile exports for 2008-09 stood at ` 963
bn, up more than 11% as compared to the textile exports
of 2006-07.
 During the same period, export of readymade garments
grew more than 25% to ` 471 bn.
 Exports of cotton textiles — including yarn, fabric and
made-ups – account for more than 22.6% of total textile
exports.

8. Basic facts: Indian textiles and clothing (T&C) exports
• India’s share in global T&C trade: 4% in textiles and 2.8%
in clothing
• India’s rank in world trade: 7th in textiles and 6th in
clothing
• Share in the country’s total exports basket: 12%
• Readymade garments share: nearly 50% of total textile
exports
• India’s textiles products are exported to over 100 countries
• Two-third of India’s textiles are exported to the US and EU
• Other major export destinations include
Canada, UAE, Japan, Saudi Arabia, Republic of
Korea, Bangladesh and Turkey.

9. MAJOR PLAYERS IN TEXTIAL INDUSTRY.

11. International Demand Drivers
•Dismantling of quotas
•Increase in sourcing of textiles by developed markets
from developing countries.
• Apparel spending remains significant in life style
products category in developed world.
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12. Projected Market for Indian T&C Products
Textile Exports Textile Exports
Exports US$ 12.7 Billion US$ 22 Exports
Market US$ Billion Market US$
22.4 Billion 43 Billion
Apparel Exports Apparel Exports (43%)
(43%)
US$ 9.7 Billion US$ 21
Total Textile and Total Textile and
Billion
Clothing Market Clothing Market
US$ 52 Billion US$ 100 Billion
Domestic Textile Domestic Textile
Domestic Market US$ 14.6 Market US$ 28 Domestic
Market Billion Billion Market US$
US$29.6 57 Billion
Domestic Domestic
Billion (57%) (57%)
Apparel Market Apparel Market
US$ 15 Billion US$ 29 Billion
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13. Global Projections (2015)
Textile Trade Textile Trade
US$ 240 US$ 338
Billion (40%) Billion (35%)
Total Global Total Global
Textile and Textile and
Clothing Trade Clothing Trade
US$ 590 Apparel Trade Apparel Trade US$ 938
Billion US$ 350 US$ 600 Billion
Billion (60%) Billion (65%)
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14. Emerging Challenges
• Competition in Domestic Market
With market opening and FTAs, industry to face competition from
increased imports.
• Regional Alliances
Trade Blocs play a significant role in global trade.
Concessional tariffs to make global trade unequal
• Ecological and Social Issues
Compliance problems to intensify
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16. Global Trade in Textile and Clothing
 World trade in textiles and clothing amounted to US $ 385 billion
in 2003, of which textiles accounted for 43 percent (US $ 169 bn)
and the remaining 57 percent (US $ 226 bn) for clothing.
 Developed countries accounted for little over one-third of world
exports in textiles and clothing.
 The shares of developed countries in textiles and clothing trade
were estimated to be 47 percent (US $ 79 bn) and 29 percent, (US
$ 61 bn) respectively.

17. Import Trends in USA
 MFA countries contributed as much as 87 percent (US $
29.3 bn) of total US textile and clothing imports.
 whereas Caribbean Basin Initiative (CBI), North
American Free Trade Area (NAFTA), Africa Growth and
Opportunity Act (AGOA) and ANDEAN countries
together contributed 13 percent (US $ 4.4 bn).
 The composition of imports of clothing and textiles by
USA in 2003 was 80 percent (US $ 71 bn) and 20 percent
(US $ 18 bn), respectively.
 In most of the quota products imported by USA, India
was one of the leading suppliers of readymade garments
in USA

18. Import Trends in EU
 . Intra-EU trade accounted for about 40 percent (US $
40 bn) of total clothing imports and 62 percent (US $
32.5 bn) of total textile imports by EU.
 Asia dominates EU market in both clothing and
textiles, with 30 percent (US $ 30 bn) and 17 percent
(US $ 8 bn) share, respectively.
 Central and East European countries hold a market
share of 11 percent (US $ 11.3 bn) in clothing and 7.5
percent (US $ 4 bn) in textiles imports of EU.
 In the EU market also, India is a leading supplier for
many of the textile products.

19. Import Trends in Canada
 Amongst the leading suppliers of textiles and clothing to
Canada, USA had the highest share of over 31 percent
(US $ 8.4 bn), followed by China (21% - US $ 1.8 bn)
and EU (8% - US $ 0.6 bn).
 India was ranked at fourth position and was ahead of
other exporters like Mexico, Bangladesh and
Turkey, with a market share of 5.2 percent (US $ 0.45
bn).

20. Potential Gains
Estimated Gains in USA and EU For China and India
(US $ Billion)
Textiles Clothing Total
Markets
Present Future Present Future (2014) 2014
(2003) (2014) (2003)
Gains in
Chin
China India India China India China India China India
a
USA 3.6 1.5 13.0 5.0 12.0 2.3 67 13 80 18
(20) (8.4) (32) (13.5) (16.9) (3.2) (42) (8) (40) (9)
EU 2.8 1.9 12 8 12.3 3.0 60 16 72 24
(5.3) (3.2) (12) (8) (12.2) (3.0) (30) (8) (24) (8)

21. Textiles and Garments Exports from
India
 The share of textiles and garments exports in India’s
total exports in the year 2003-04 stood at about 20
percent, amounting to US $ 12.5 billion.
 The quota countries, USA, EU and Canada accounted
for nearly 70 percent of India’s garments exports and
44 percent of India’s textile exports.
 Amongst non-quota countries, UAE is the largest
market for Indian textiles and garments; UAE
accounted for 7 percent of India’s total textile exports
and 10 percent of India’s garments exports.

22. Continued..
 In terms of products, cotton yarn, fabrics and made-ups
are the leading export items in the textile category.
 In the clothing category, the major item of exports was
cotton readymade garments and accessories.