1. The document provides production statistics for the Indian textile industry for the year 2002-03, including raw materials produced, fabric varieties produced, sector-wise cloth production, and textile exports by commodity. 2. It discusses the role of the textile industry in the Indian economy, past government regulations, and agreements like the Multifibre Agreement and Agreement on Textiles and Clothing. 3. A SWOT analysis of the Indian textile industry is presented, noting strengths like labor force and design expertise, and weaknesses like fragmented structure and low productivity. Opportunities in the growing global market and threats from competitors like China are also summarized.

1. 1. Production of Fibres for the year 2002-03 (in Mn Kg.)
47 16.21
914 Raw Cotton - 71%
Manmade Fibre - 28%
Raw wool - 0.96%
Raw silk - 0.04%
2312
2. Production of fabric variety wise for the year 2002-03 (in percentage)
39% Cotton
47%
blended
Non-cotton
14%
3. Sector wise production of cloth
19%
hoisery sector 17%
63%
powerloom sector 61% 2002-2003
2001-2002
14%
handloom sector 18%
4%
mill sector 4%
5. Commodity wise Indian textile exports (2002-03)

2. Cotton Textiles
28% Readymade
garments
41%
Man-made
Textiles
10% Wool, Silk, Jute
& Coir Other and
7% Carpets
14%
4. Major exporting countries for the Year 2002-03
14%
14%
12%
China
10%
8% US
5% 5% Korea
6%
3% 3%
4% 2% Hong Kong
2% India
0% Japan
Share in total world exports
Role of Indian textile industry in the economy

3.  Second largest employment providing sector
 About 27% of total export earnings
 Nearly 6% contribution to GDP
Role of the Indian government in the past
 Regulatory disadvantages
 Foreign Investment
 Excise and Tax
 Labor Laws
Agreements Related to Textiles: -
• Multifibre Agreements (MFA) 1974-1994
• Agreement on Textile and Clothing (ATC) 1995-2004
• Under the Agreement, WTO Members have committed themselves to
remove the quotas by 1 January 2005 by integrating the sector fully
into GATT rules.
Implications of WTO
 Exports will only be based on market considerations, namely product
attributes, pricing, promotion
 The restrictions on imports into these countries
1. Non-tariff barriers
2. Regional trade arrangement (RTA)
3. Anti dumping
 FDIs and technology transfer in the developing countries.

4. Swot Analysis
Strength
 India has a huge; relatively inexpensive and skilled labour force.
 Vertically integrated
 It has impressive design expertise
Weakness
 Fragmented industry structure
 Low productivity at all levels
 Excise and other tax imbalances
Opportunity
 The global textile trade has been rather muted for a few years now is set
to triple to $856 Billion over the next decade.
 Indian textile export increases to $50 bn from the current 13 $bn exports
 Indian textile exports growth at 20% annually.
 Overseas company diversify their sourcing basket towards India
 RMG sector evolved as a biggest market constitutes 41% of the total
exports
Threats
 ‘Non-Tariff Barriers’
 RTA and PTA
 Threat from countries like China, Pakistan and Bangladesh are major
competitor for the supply of textiles.

5. Research objectives: -
The aim of this research is to develop appropriate marketing systems for the
organized textile mill sector in India in the wake of WTO.
Objectives
 To study the marketing systems of organized textile mills and their
preparedness to deal with threats and opportunities posed to them by
WTO.
 To find the overall impact of Agreement on Textiles and Clothing
(ATC) on Indian organized textile mill sector.
 To suggest the effective measures needed to be taken by them to
dominate the world textile market.
 To disseminate this information to smaller and weaker textile units
who are still ill prepared or unaware of the current situation.
Research methodology
 Exploratory type
Data collection method
 Primary data- questionnaire and interview
 Secondary data – websites and annual reports.

6. Findings
 Removal of quota restriction have favorable to the mills
 Already Upgraded Technology
 Focus on new product development and innovation
 Consistent Improvement in quality
 Most of mills have no price cut after removal of quota and adopting perceived value
pricing model
 China may considered as a threat for dumping of textile products
 PTA and RTA has substantial effect in a long term
 Focusing on USA and EU as a target market
 Increasing distribution channel abroad
 Effect of PTAs and RTAs
Recommendation
• Need huge investment to take the opportunity
• Composite mills have to focus on niche market
• Need to focus on new product innovation and development
• Focus on consistently quality improvement and technology up
gradation
• Improve labour productivity
• Reduce production cost