1. India An Emerging Market Opportunity for Global
Manufacturers & Suppliers of Apparel Fabrics & Accessories
&
2. Indias Textile Industry
Produces 42,000 million sq mtrs of Fabric per year
420
5,000 million pieces of Readymade Garments per year
50
Fiber breakup of Fabrics is as follows :
:
- 43% Cotton
43%
- 14% Cotton blended
14 %
- 42% Non-Cotton
42%
- 01% Others
01%
Varied and Diverse Base
3. Textile Map of India
4. Textile Exports Current Scenario
Readymade Garments make up US$ 6.1 billion
61
Cotton Textiles is US$ 3.5 billion
35
Man-made Textiles is US$ 1.8 billion
18
Silk, Woollen and others is US$ 1.6 billion
16
( @ Rs. 43.5 = US$)
India exports a total of US$ 13 billion worth of Textile Products,
of which 130 , :
5. Imports of Textiles into India Source: DGCIS, Kolkata 347.90
(mn sq mtrs) 84.22 68.40 Fabrics 165 177 139 Yarn 523 817 611 Fiber
& Fiber waste 2003-04 (Figures in tons) ( : ) 2002-03
2001-02
6. Apparel Industry in India (Figures in US$ billion) ( ; )
23.00 18.75 18.07 Total production of Apparel 16.90 13.80 13.30
Domestic availability of Apparel 6.10 4.95 4.77 Exports of Apparel
2004-05 2003-04 2002-03
7. Major Supplying Countries to India (Figures in US$ million)
( : ) (Arranged in descending order as on 2003-04) 2,021.96
1,645.47 1,537 All countries 55.02 53.21 42.33 Thailand 55.17 86.54
58.30 Indonesia 63.21 55.95 30.29 Hong Kong 76.35 40.15 50.22 Nepal
109.30 117.32 130.60 Australia 123.06 101.07 97.90 Korea. S 126.62
110.25 114.91 Taiwan 185.15 123.15 173.45 USA 492.46 331.02 252.95
China 2003-04 2002-03 2001-02
8. India Brimming with Opportunities
Average GDP growth is 7% and will keep increasing
7%,
Industrial production growth 8.5% in 2004-05 fastest in 8
years
2004-05 8.5% - 8
300 million middle class consumers with strong purchasing
power
3 ,
Penetration of reforms in rural sector is increasing purchasing
power & improved living
With continuous economic reforms and integration with the Global
Economy, India is providing a host of opportunities. Some strong
indicators: , , . :
9. India Brimming with Opportunities
Improved literacy in rural India, expanding job opportunities +
increasing incomes create new markets
, +
Indian economy fast integrating with world economy
Focus on modernization, upgradation of technology &
building of large-sized units to increase price competitiveness and
enlarged job opportunities
, ,
10. Strong Textile-led Growth
Export & Domestic market size is US$ 23.00 billion;
expected to reach US$ 70 billion by 2010
230 ; 2010 700
Apparel exports presently US$ 6.10 billion; set to rise to US$
15 billion by 2010
61 ; 2010 150
Domestic Apparel Market size, currently US$ 16.9 billion
expected to reach US$ 55 billion by 2010
169 ; 2010 550
Apparel Per Capita Consumption currently 6 pieces expected to
reach 20 pieces by 2010
6 ; 2010 20
Apparel Industry earmarked as one of the main engines for growth of
Indias Textile Industry
11. Government Policies
Peak Customs Duty on semi-finished and finished textiles
brought down to 15% from 20% earlier
20% 15%
Possibilities of Specific Duties on Textiles and Apparel to be
phased out
Excise Duty continuously lowered and made optional for fabrics
and garments
,
Processing sector granted 10% cash subsidy for
modernization
, 10%
Import duty on all textile machinery reduced to 10% & on
140 items of apparel machinery to 5%
10% 140 5%.
Knitted garment sector de-reserved from Small Scale Industry
Sector, creates tremendous potential for growth
, .
Labour reforms set to be made industry friendly
12.
Government Policies
Special Tax benefits to textile manufacturing units
10 year tax holiday.
Income tax at half rate for the next five years.
Income tax exemption for the next five year upto total
investment.
No duties within Special Economic Zones (SEZs) and for Export
Oriented Units (EOUs) located outside SEZ.
No import duties if exports are to EOUs.
100% Foreign Investment permitted in textile
manufacturing.
Retail sector expected to be opened for foreign investment in
near future.
13. Strong Textile-led Growth
Foreign Direct Investment in Garment sector permitted without
limit
Foreign Direct Investment in Retail to be raised to 49%
49%
Major International Retailers eyeing India as sourcing hub,
next only to China
, , .
Therefore, the opportunities emerging in India are tremendous ,
.
14. What does India need? ?
Performance Fabrics
Linen, Ramie,
,
Specialized fiber based Tencel, Lycra
, Tencel
Micro fiber Yarns
Coated/laminated Fabrics
/
Special finishes in Synthetic Blends
Special and fashion Embellishments
Technical Textiles
Fire proof and Ballistic-proof Fabrics
And much more
To meet its targeted requirements in apparel exports, as well as
the domestic market, India needs access to a wide variety of
innovative fabrics & accessories, like: , , , , :
15. India beckons India is increasingly opening its markets to
the worldthe opportunities in the Textile and Apparel sector are
there for the picking
16.
Comparing India and China
Indias share in global textile trade is 3%.
Indias textile sector could easily grow at 25-30% annually
without attracting negative measures from US and EU.
Indias strength is variety and innovation and Chinas strength
is bulk production and consistent designs.
Indias strength is hand made textile Chinas strength is machine
made.
17.
Indias Textile Market expected to be USD 60 billion by
2010.
Indias exports 6 billion of textiles and 6 billion of clothes
annually.
Composition of global textile market
60% polyester
40% cotton
Composition of Indias textile market is
80% cotton
20% polyester
Taiwan could supply polyester, blended, coated, high technology
fabrics, technical and specialty fabrics & textiles to
India
18.
Frequently Asked Questions
Q Number of textile manufacturers in India?
A 15,000 Export Oriented Units (EOUs) and about 50,000 more
manufactures are in the domestic textiles market. There are many
unregistered small time manufactures.
Q Centers of textile industry in India?
A Mumbai (Mens wear), Delhi, Bangalore, Calcutta (Childrenwear)
, Chennai (Womens wear), Ludhiana (Hosiery & Knitwear in Punjab
province), Tirpur ( Hosiery & Knitwear in Tamil Nadu Province),
Indore (Madhya Pradesh province).
Q Average size of the factories in textile export?
A 500-700 machines.
19.
Q Mode of business payment?
A LC at sight is the normal mode of payment.
Q Import duty on textile products?
A 15% and a counter veiling duty of 16%. These duties are not
applicable within SEZs, EOUs and for units engages in
re-export.
Q Import Tax on textile imports?
A Within Special Economic Zones (SEZs) and for Export Oriented
Units (EOUs) there is no import duty. Units (domestic and foreign)
need to give a bank guarantee towards export of goods against
imports.
Q Limit on foreign investment in textile sector:
A None. 100% foreign investment is permitted in textile
manufacturing. However foreign investment in retail is not allowed
yet. FDI in retail sector is expected soon.
20.
Q Norms on factory construction, wages, safety standards
etc?
A Factory Act governs these aspects.
Q Labour issues?
A Special Labour Officers are appointed in the courts. For the
in units within Special Economic Zones (SEZs) the Development
Commissioner is the labour officer also.
Q Tax benefits within SEZs?
A No income tax for first 10 years
Income tax at half rates for next 5 years
exemption for the next five year upto the amount of investment
in the project.
21.
Q Minimum wage in the textile sector?
A For unskilled worker minimum wages could be as low as 80 USD/
month, though the figure is merely indicative.
