CHAPTER III

FOREIGN TRADE OF INDIAN COTTON TEXTILE

INDUSTRY

The chapter covers the following sections. (i) Textiles in the Indian

Economy: (a) Indian Cotton Industry - This section deals with cotton

production and concentration of cotton crop in a few states, and yield, and

comparing the Indian scenario with that of a few other countries. (b) Indian

Textile Industry – structure and performance of the entire textile industry value

chain. The analysis reveals SWOT analysis of the Indian Textiles Industry.

Highlights of the draft National Fibre policy announced by the Ministry of

Textiles, Government of India in July 2010 are also covered. (ii) Competitiveness

of Indian Textiles and Clothing Industry. This section deals with various factors

influencing competitiveness of Indian products in international markets where

competition with products from other countries is involved. (iii) India’s position

in Textiles and Clothing Exports – Composition. This deals with analysis of the

composition of textiles exports, with break up for cotton and non-cotton; and in

both the sub-sectors, further break up into five segments – fibre, yarn, fabric,

readymade garments, and made-ups. Direction of Indian Textiles and Clothing

exports is covered in the second half of chapter IV. Time series data for 11 years,

1998-99 to 2008-09 are considered for intensive analysis. In some of the tables,

data from 1994-95 to 2009-10 are used to analyse the impact of the quantitative

restrictions during the period of operation of the Agreement on Textiles and

Clothing (T&C) (January 1995 – December 2004) on Indian textile exports, and in

the quota free regime from January 2005 till date. Compound annual growth rate

(CAGR), and annual per cent change and per cent share are worked out for

specific periods for analysing variations.

(iv) Indian Textiles and Clothing Imports Scenario for the period 1998-

99 to 2009-10. For imports, composition and direction are covered in this chapter.

Five hypotheses indicated in chapter II have been examined with data presented in

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this chapter both for textile exports and imports; and results brought out. Trend

lines have been drawn for the time series data for exports and imports, using the

method of least squares. Chow Test has been used to analyse the position of

exports and imports in five segments and the total, in the ATC period and post-

ATC period.

I. Textiles in the Indian Economy

3.1 India’s Cotton Industry

Cotton is one of the principal commercial crops cultivated in India. It plays

a major role in sustaining the livelihood of an estimated 5.8 million cotton farmers,

and 40-50 million people engaged in related industry and trade activities. The

Indian textile industry consumes a diverse range of fibres and yarn. The industry

is multi-fibre based, using cotton, jute, wool, silk, man-made, and synthetic fibres.

Cotton is the major raw material used in India. The fibre-mix of textile industry in

India is skewed towards cotton, with 60 per cent of yarn as cotton-based, and the

remaining 40 per cent being non-cotton based, using other fibres. Internationally

the fibre-mix is skewed towards man-made fibres with 60 per cent input of this

category, and the remaining 40 per cent as cotton-based. India is the second largest

producer of cotton in the world, next to China, and has the largest cultivated area

with China as the second, and USA as the third; and accounts for 20 per cent of

global production of cotton. However, in yield, India lags far behind a number of

other countries. The acreage under cotton cultivation during cotton season

(October-September) has increased considerably in recent years from 8.8 million

hectares in 2004-05 to 10.33 million hectares in 2009-10 (9.8% growth over the

previous year) (Table 3.1). It was 9.41 million hectares in 2008-09, and 7.63

million hectares in 2003-04. Compound annual growth rate (CAGR) of acreage

under cotton during 1999-2009 works out to 1.7 per cent, and for production 6.6

per cent. The acreage has been fluctuating though it has been steadily increasing

from 2004-05. Between 2002-03 and 2009-10, CAGR is 4.4 per cent in respect of

area, and 11.7 per cent in respect of production. About 62% of India’s cotton is

produced in rainfed areas, and 38% on irrigated land. Cotton farmers have been

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showing increasing inclination to take to Bt cultivation which helps them in

increasing their net earnings through higher yields and lower cost of pesticides

consumption. The acreage under Bt cotton in 2009-10 is 78% (8.08 million

hectares) of cotton cultivated area, as against 72% in 2008-09. India produces a

large number of cotton hybrids and varieties with all the four species of cotton

cultivation. The widespread use of Bt cotton seeds has played a catalytic role in

enhancing cotton production in the country.

During 2009-10, the country harvested higher cotton crop for the sixth

consecutive year at 5.02 million tonnes (equivalent to 29.5 million bales of 170

kgs each) as against 4.93 million tonnes (29 million bales) during 2008-09 (Table

3.3). Cotton yield during 2009-10 was 486 kgs lint per hectare as against 524 kgs

in 2008-09, and 567 kgs in 2007-08 (Table 3.4). Yield per hectare in China is 1251

kg, USA 912 kg, and the world average 766 kg. The decline was due to

unfavourable agro-climatic conditions and insufficient rains. Cotton cultivation is

mainly spread over nine states of the country, three each in the Northern, Central

and Southern zones. The states are Punjab, Haryana and Rajasthan in the North,

Gujarat, Maharashtra and Madhya Pradesh in the Centre, and Andhra Pradesh,

Karnataka, and Tamil Nadu in the South. Cultivation in a few other states is

relatively small. Among the states, Gujarat, Maharashtra and Andhra Pradesh

stand prominent in production, above 5 million bales each in 2009-10, while in

respect of yield Tamil Nadu, Andhra Pradesh and Gujarat occupy the first three

ranks in that sequence in 2008-09. With the further possibility of higher use of Bt

seeds / hybrid seeds, and decline in the cost of such seeds, it is projected to

improve the yield to 700 kgs per hectare, and cotton production to 6.6 million

tonnes (39 million bales) by 2011-12 from 31.5 million bales in 2007-08.

Technology Mission on Cotton has played an important role in improving yield of

cotton, and increasing production, apart from modernisation of the industry value

chain.

Correlation Coefficients have been worked out for state-wise cotton

production data for the 9 leading states for the years 1999-00 and 2009-10 to know

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whether the ranking of various states during the 2 periods remains the same or has

changed over years (Table 3.3).

Karl Pearson’s Correlation Coefficient ( r ) : 0. 8429

Charles Spearman’s Rank Order Correlation Coefficient (rho): 0.9259

Both the coefficients show very high degree of positive correlation. This

shows that ranks have remained nearly the same. Changes noticed in the ranks of

the states between the two periods are as follows; Maharashtra and Gujarat have

exchanged their ranks 1 & 2, with Gujarat becoming 1 in 2009-10, and

Maharashtra 2; Haryana, Punjab and Rajasthan have been ranked as 5, 6 and 7 in

2009-10. The ranking of other states remains the same. Andhra Pradesh and

Madhya Pradesh are 3 & 4, respectively; Karnataka and Tamil Nadu are 8 & 9,

respectively. In comparison with the first 3 states, all others are at a much lower

level in annual production.

3.2 Indian Textile Industry

The Indian textile industry is pegged at US $55 billion in 2010, 64 per cent

of which services domestic demand, and the rest is for the export-market. The

Textile industry, also known as textiles and clothing (T&C), textiles and garments

(T&G), and textiles and apparel (T&A) accounts for 14 per cent of industrial

production, 4 per cent of Gross Domestic Product (GDP), and 12.5 per cent of the

country’s exports earnings in 2009-10. Exports was US $22.15 billion in 2007-08,

US $20.98 billion in 2008-09, and US $22.38 billion in 2009-10. Out of total

textile exports, export of readymade garments / clothing is around 51 per cent.

Compound annual growth rate (CAGR) of textile exports in US $ terms was 10.5%

during 2004-09, as against 6.4% during 1994-2005. During 1994-2000, it was

6.9%, and during 1999-2005, 6.0%. The corresponding percentages of CAGR for

overall exports of the country are 22.0 for 2004-09, 12.2 for 1994-2005, 6.9 for

1994-2000, and 17.8 for 1999-2005. The Agreement on Textiles and Clothing

(ATC) of the World Trade Organisation (WTO) has been in operation for phasing

out quantitative restrictions on movement of textiles from developing countries to

developed countries during January 1995 and December 2004. With the

elimination of quota restrictions on completion of tenure of the ATC, quota free

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regime has come into vogue for international trade in textiles, apart from other

commodities. CAGR of the post-ATC period for exports from 2005 for Indian

textiles, as well as for overall exports has performed better compared to the ATC

period. From 1990-91 up to 2003-04, percentage of textile exports to the country’s

overall exports ranged from 21 to 28. In view of the faster growth of overall

exports in US $ terms of 20 to 30% in recent years, the proportion of textile

industry’s contribution to overall exports has come down. The sector directly

employs over 35 million people, which includes sizeable percentage of

marginalised sections of the society and women. The sector is the largest employer

after agriculture in the economy.

Textile imports in 2009-10 constitute US $3.4 billion, 1.2% of the country’s

overall imports. CAGR for textile imports in US $ terms for 2004-09 has been

higher (12.1%) compared to 9.6% for 1994-2005. Corresponding figures for

overall imports of the country were 28.5% and 14.6%. Growth rate in the second

phase of ATC period (1999-2005) has been higher for textile imports as well as for

overall imports compared to the first phase (1994-2000).

The National Manufacturing Competitiveness Council (NMCC) has

identified T&G as one of the priority sectors having high growth potential, and

higher multiplier effects for employment generation, and inclusive growth. The

NMCC envisaged the market potential for the industry at US $115 billion by 2012.

This would create 12 million job opportunities – 5 million direct and 7 million in

the allied sectors. Indian apparel market has grown by more than 20 per cent

annually in recent years, and is estimated to be valued at US $26 billion. A recent

research study of Technopak Advisors, a leading management consultancy firm,

presented the perspectives of the industry on the following lines. The industry is

expected to grow from US $70 billion in 2009 to US $220 billion by 2020;

domestic market size from US $46 billion in 2009 to US $140 billion by 2020; the

apparel retail market worth US $33 billion in 2009 is expected to touch US $100

billion by 2020. India has the potential to increase its textile export share in world

textile exports from the current 4.5% to 8% to reach US $80 billion by 2020 from

the level of US $22.4 billion in 2009-10. Growth within the industry will be driven

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by innovation across product, design, brand, channel, and also business processes.

European Union and USA are the major destinations for India’s textile and

garment exports. Other major destinations include: United Arab Emirates (UAE),

China, Bangladesh, Saudi Arabia, and Japan. As per data collated by WTO, for the

year 2006, India accounted for 4.3% of total world exports of textile products, and

in the clothing segment India’s share was 3.3%.

Having a highly fragmented structure, the Indian textile and apparel value

chain consists of four stages.

� Ginning and Spinning – Spinning is the process by which cotton or manmade fibre is converted into yarn. In case of cotton, before spinning, ginning is done where the impurities are removed.

� Weaving and knitting – Conversion of cotton or manmade yarns into woven or knitted fabrics

� Processing – includes bleaching, dyeing, mercerising, and printing, which results in finished fabric to be used for manufacture of clothing.

� Clothing manufacturing – this is the final stage where the designing, pattern making, cutting, embellishing, stitching, finishing and packaging is done for distribution.

Many players in India have been focusing on further expansion, and have

been moving up the value chain by adopting a range of strategies. India’s position

in the world textile economy is given in Table 3.7(B). As can be seen from the

table, India is ranked first in the weaving sector with a large number of shuttle

looms and handlooms. However, India ranks only fourth position in the world in

terms of capacity of shuttleless looms; as a result, India lags behind China in terms

of production. India is also ranked first in the production of Jute. However, in case

of raw wool and synthetic fibre, it was positioned 7th and 5th rank, respectively.

The major sub-sectors that comprise the textiles sector include the

organised cotton / man-made fibre textiles mill industry, the man-made fibre/

filament yarn industry, the wool and woollen textiles industry, the sericulture and

silk textiles industry, decentralised powerlooms, handicrafts, jute and jute textiles

industry, and textiles exports.

The cotton/man-made fibre textile industry is the largest organised industry

in terms of employment (nearly one million workers), and number of units.

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Besides, there are a large number of subsidiary industries dependent on this sector,

such as those manufacturing machinery, accessories, stores, ancillaries, dyes and

chemicals, etc. As per the Annual Report 2009-10 of the Ministry of Textiles, at

the end of October 2009, there are 1834 cotton/man-made fibre textile mills (non-

small scale industries) in the country with an installed capacity of 37.07 million

spindles, 4.89 lakh rotors and 56,526 looms. The decentralised powerloom sector

plays a vital role in meeting the clothing needs of the country. The powerlooms

produce a wide variety of cloth, both grey as well as processed. Production of cloth

as well as generation of employment has been rapidly increasing in the powerloom

sector. At the end of December 2009, there are 2.24 million powerlooms in the

country distributed over approximately 5.03 lakh units, constituting over 60% of

the global powerloomage. The powerloom sector contributes about 62% of the

total cloth production of the country, and provides employment to about 5.6

million persons. Powerlooms constitute about 14% of employment in the textile

sector, account for 60% of the fabric meant for exports. The handloom sector has

played an important role in creating awareness of the Indian cultural diversity and

fashion, which is unique to the Indian textile industry. The handloom cloth

production in 2008-09 is 6,677 million square meters (12.3% of total production of

cloth). Production of cloth in the country in 2008-09 is as follows: total quantity 54

billion square meters, with the proportions in percentage terms segment-wise:

organised mill sector 3.3, handlooms 12.3, powerlooms 62.1, and hosiery sector

22.3 (Table 3.7A). Decentralised powerloom sector has been maintaining steady

growth annually of around 5 to 7 per cent, and hosiery sector with around 10 to 15

per cent in some years. Mill sector and handlooms have been showing declining

trend.

The clothing sector is fragmented and is predominantly in the small and

medium enterprise (SME) sector. It is estimated that there are over 34,000 apparel

units (excluding tailoring units) in India, majority of which are in the SME sector.

The Apparel Export Promotion Council (AEPC ) conducted a study of Apparel

Clusters in the country in 2009. As per this study, there are 19 clusters with annual

production estimates representing 95% of production of garment units in the

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country. These account for production of 89 billion pieces during 2007-08. Out of

total production, 68 billion pieces (76.4%) are for domestic consumption, and 21

billion pieces (23.6%) are for exports. Total employment generated in the 19

clusters in 2008 was around 3.43 million with 51% of it as direct employment, and

49% as indirect employment. Top ten clusters representing 80% of national

production are: Kolkata, Mumbai, Tirupur and Chennai in Tamil Nadu, Ludhiana

(Punjab), Indore (Madhya Pradesh), Bellary and Bangalore in Karnataka, Jaipur

(Rajasthan), and Okhla (Delhi). Other nine clusters are at Kanpur (Uttar Pradesh),

Ahmedabad (Gujarat), Nagpur (Maharashtra), Jabalpur (Madhya Pradesh), Salem,

Erode and Madurai in Tamil Nadu, NOIDA (Uttar Pradesh), and Gurgaon

(Haryana). Clusters are specialised in terms of (a) types of garments manufactured

(either woven or knitted), and (b) variety of products produced (i.e. men’s,

women’s or children’s). Seven major export clusters with exports in 2007-08 in

Rs. billion given in brackets are : Tirupur (995), Gurgaon (425), Bangalore (400),

NOIDA (350), Chennai (200), Ludhiana (140), and Kolkata (100).

Fragmented Industry

The textile and clothing industry in India is a fragmented one with a large

number of players, which hampers its ability to emerge as a world class supplier.

Also very few players have integrated their operations. With the exception of the

organised mill sector, either as spinning or composite mills including weaving and

processing facilities, all other stages of manufacture are in the small and medium

enterprise sector. One of the reasons for China’s supreme position in global textile

and clothing industry is its integrated production and consolidated supply chain

facilities. The global buyers prefer to place orders with a few large vendors at

competitive cost. The disintegrated nature of the industry hampers the chances of

securing large orders as also achieving economies of scale. Associated challenges

are low productivity, inadequacy of resources to invest in high technology, etc.

Cost Competitiveness

With regard to cost of production, India fares well in labour cost advantage

in the textile sector. However, the cost of power and capital (depreciation and

interest) is greater than many other countries. The labour cost of Bangladesh,

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Pakistan and Vietnam is far below that of India, posing competitive threat to the

Indian readymade garments industry. Compared to year 2000, in the recent years,

the cost of labour in India has gone up substantially as contrasted with the position

in the Asian competitor countries. SWOT analysis of the Indian textile industry in

the context of the global competitive environment is presented here in terms of

strengths, weaknesses, opportunities, and threats.

Text Table 3.1: Indian Textile Industry – A SWOT Analysis

Strengths Weaknesses

� Multi-fibre raw material base � Lack of technology upgradation � Cheap labour � Low investment levels � Supervisory skills � Poor yield and quality of raw material � Traditional skills � Product quality - lower end � Large domestic market � Traditional management

Opportunities Threats � High labour costs in developed countries � Absence of protection under WTO from

2005 � Absence of quotas from 2005 � Emerging competition � Regional trading blocs � Non-tariff barriers

Source: Textiles Committee, Mumbai.

3.3 National Fibre Policy (2010)

1. A working group on National Fibre Policy was constituted by the Ministry

of Textiles in July 2009, comprising representatives of government organisations,

export promotion councils, industry associations, and experts drawn from

prominent organisations. Eight sub-groups on various fibres were formed to

critically examine the relevant aspects, and make recommendations to facilitate

formulation of a comprehensive fibre policy. The National Fibre Policy 2010-11

was released by the Ministry of Textiles on its website on July 7, 2010 inviting

comments and suggestions. The Policy will be formalised in the near future. A few

of the Key aspects covered in the draft Policy Paper are presented in this section.

(Source: www.texmin.gov.in)

3.3.1 Overview

2. The National Fibre Policy has been designed with a decadal perspective of

2010-20, and seeks to place India firmly on the World Fibre map by strengthening

the existing policy framework, and providing institutional and technological

support for rapid Fibre growth in the country in the coming decade. The projected

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growth trajectories envisaged under the National Fibre Policy are ambitious, and

would benefit all stake holders in the Textile Industry value chain.

3. The National Fibre Policy seeks to build a strong and vibrant textile

industry competent of producing quality cloth at acceptable price, increasingly

contributing to enhanced employment provision and competing for an increased

share of global market. The Fibre neutral policy seeks to balance the existing

disparities within the complete range of fibres by providing additional fiscal and

non-fiscal incentives for sustainable growth of all fibres, and be competitive in the

international market.

4. The policy framework has been built keeping in mind the potential growth

of technical textiles both for domestic and international demands. Special attention

has been drawn to promote the lesser known specialty man made fibres and other

natural fibres. The domestic fibre consumption ratio in India at present is 41:59

(FY09) between man-made fibres and cotton, while it is almost 60:40 globally.

The global fibre consumption trend in future is likely to further tilt in favour of

man-made fibres as there is a limitation to growth of cotton world wide on account

of limited availability of land for cotton cultivation. Given that the future demand

is expected to be largely in favour of man-made fibre based textiles; special

attention is required to boost the consumption and production of man-made fibres

in India.

5. Investments needed for modernization and technology upgradation have

been envisaged through continuation of the TUFS scheme while promoting greater

downstream integration. The policy also envisages extension of the TUFS scheme

to Man Made Fibres production and Technical Textiles. The Handloom Sector

plays a vital role in the economy. In terms of employment, the Sector is next only

to agriculture and provides employment to the weaker sections of the society, with

86% handloom weavers/workers living in rural and semi-urban areas. The

National Fibre Policy addresses increasing the demand for raw materials for

handloom weavers keeping in view of the projected growth rates of the handloom

sector.

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6. The key elements of the National Fibre Policy thus include the following:

a) Cotton production is envisaged to rise at a growth rate of 4.7 per cent from 31.9 million bales in 2010-11 to 48.3 million bales in 2019-20; Cotton Consumption is envisaged to increase to 41.3 million bales by 2019-20 with 7 million bales being surplus;

b) Man Made Fibres and Speciality Fibres domestic demand will rise at a growth rate of 8 per cent per annum from 3.9 billion kgs in 2015 to 6 billion kgs in 2020;

c) Jute production will rise at a growth rate of 3.6 per cent from 9.4 million bales in 2010-11 to 13.0 million bales in 2019-20;

d) Wool consumption is projected to nearly double from 114.2 million kgs in 2009-10 to 260.8 million kgs in 2020.

8. The National Fibre Policy also envisages significant institutional strengthening mechanisms in the form of the following:

a) An Inter-Ministerial Committee of Secretaries headed by Textiles

Secretary to calibrate cotton exports to ensure improved supply chain management for domestic consumption, Electronic data exchange between Customs Department and Textiles Commissioner for monitoring cotton and yarn export shipments;

b) Establishment of a Yarn Advisory Board for formulation of a Yarn Balance sheet to ensure adequate yarn availability for handlooms and garments sector;

c) Launching of a Technology Mission on Technical Textiles and creation of centres of excellence in the identified sub groups of technical textiles;

d) Creation of a Jute Development Fund for R&D efforts in modern machinery development of Jute sector;

e) Setting up of an MMF advisory council with all stakeholders to monitor excise duty and other concessions and take an integrated approach to solving the problems of MMF producers;

f) Adopting a Mission Mode approach and establishing an Inter Ministerial Board for promotion of Organic, Suvin and ELS cotton sector;

g) Restructuring the Central Wool Board on the lines of the Central Silk Board to effectively implement the various schemes and policies and achieve desired objectives;

h) A Focus Fibre Focus State approach would be adopted for the development of Other Natural Fibres in the Country.

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3.3.2 Aims and Objectives

9. The National Fibre Policy has the following aims and objectives:

i. Augmenting investment, and providing support on both fiscal and non-fiscal front to increase fibre availability in the country, and facilitate high growth and competitiveness of the textile sector.

ii. Focusing on improving quality of the fibre produced in India;

iii. Devising means to augmenting remuneration of all the stakeholders within the fibre eco-system;

iv. Correcting fiscal anomalies, and policy limitations that are currently present in the fibre eco-system in order to ensure balanced growth of the textile industry;

v. Providing assistance for building capacity in both industry segment and human capital required for processing the expected surge in the fibre production;

vi. Supporting modernisation and technological up-gradation of various segments of the industry, to increase its competitiveness;

vii. Addressing the problem of infrastructure bottlenecks.

3.3.3 Future Outlook of India’s Cotton Production and Consumption

10. Cotton production largely depends on the area under cotton production and

productivity. Considering the issues pertaining to food security and land pressures,

the area under cotton production is assumed to be largely constant at the current

level. Thus, the future production is expected to be driven by improvement in

cotton yield. Yield is assumed to grow at 4.7%. The final scenario for 2020 is

encapsulated in the table below.

Future Outlook for Cotton Production and Consumption (figures in lakh bales)

Year Production Consumption Surplus 2010-11 319 267 52 2014-15 384 323 61 2019-20 483 413 70

11. In the years to come, the robust increase in domestic consumption is likely

to drive down the surplus in cotton. Therefore, it is essential that there is greater

focus on enhancing domestic production of cotton significantly to cater to the

expected increase in domestic demand.

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3.3.4 Man Made Fibres

12. Analysis of the world Textile and Garment production vividly brings out

that India’s failure to harness the potential of Man Made Fibres has proved to be a

limiting factor in attaining a dominant position it deserves in the international

Textiles and Clothing sector.

13. India is the second largest producer of man-made fibres in the world (World

Fibre Report 2008) with presence of large plants having state-of-the art

technology. MMF textiles constitute almost two-third of the domestic textile

market. However, India’s share in global exports of value-added textiles of

manmade fibres is miniscule at around 2.25% in 2008 (India’s MMF exports were

US $ 3.3 billion as against global exports of US$ 146.7 billion). Hence, the

domestic MMF: cotton fibre consumption ratio in India is 41:59 (FY09) while it is

the reverse globally. The share of man-made fibres in total fibre consumption has

risen from 25% in early nineties to 41% at present. However, since quota abolition,

the share of MMF in India’s fibre consumption has almost stagnated at around

40% on account of rising cotton production and international demand for cotton by

textile manufacturers to cater to export demand from global markets.

14. India’s capacities for man-made fibres currently stand at 3.4 billion kg,

which is around 6.6% of global MMF capacities. India’s total production of

manmade fibres stood at 2.5 billion kg in FY09, of which exports constituted

10.1% at 0.25 billion kg., and imports constituted 0.12 billion kg. Indian man-

made fibre industry is largely polyester dominated, which constitutes over 83% of

total manmade fibre production.

15. While man-made fibre production is highly concentrated, with limited

players engaged in manufacturing of MMF, the value added MMF textiles

manufacture is primarily in the decentralised sector, with presence of a large

number of small and medium enterprises. Production of MMF fabrics has grown

from 21 billion square meters in FY05 to 23.9 billion square meters in FY09.

While in the domestic market, MMF textiles and garments are dominant (65-70%),

cotton textiles are predominant in the export markets (over 80%).

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16. Given the changing consumption pattern in favour of man-made fibre based

textiles, there is a need to assess the medium term and long term demand for

manmade fibres in India. The demand for man-made fibre depends upon the

demand for yarn and fabrics, which in turn depends upon the consumption of

finished textiles, namely, apparel and made-ups.

17. Considering future GDP growth of 8%, the domestic demand for man-made

fibres/ filament yarns is estimated at 3.9 billion kg in FY15 and about 6 billion kg

in FY20. Adjusting to this the likely exports and imports of MMF, the overall

MMF requirement is estimated at 4.2 billion kg for FY15 and 6.48 billion kg for

FY20. This implies capacity additions of about 1.8 billion kg (FY15) and 4.6

billion kg (FY20), which would require an investment of over Rs. 90 billion by

FY15 and Rs. 230 billion by FY20.The PFY (Polyester Filament Yarn) has a

majority share in the MMF fibre demand and the country’s share in PSF

(Polyphenylene Sulfide Fibres) is weak.

3.3.5 Speciality Fibres and Technical Textiles

18. Technical Textiles are “textile materials and products used primarily for

their technical performance and functional properties rather than their aesthetic or

decorative characteristics”. Some of the terms used for Technical Textiles include

“industrial textiles”, “functional textiles”, “performance textiles”, “engineering

textiles”, “invisible textiles” and “hi-tech textiles”. Technical Textiles are used

individually to satisfy a specific function (fire retardant fabric used in the uniforms

of firemen) or as a component of another product for enhancing its strength,

performance or other functional properties (tyre cord fabrics used in automobile

tyres). They are also sometimes used as accessories in processes to manufacture

other products (paper maker felt in paper mills). Some examples of Technical

Textiles in our day-to-day life include- tea bags, interlinings in clothes, carpets,

wall coverings, sanitary napkins, baby diapers, mattresses, and blankets amongst

others. Technical Textiles have a very important role in nation’s security and

infrastructure development and nation building in general. Some examples are-

geo-textiles for long lasting roads, environment/ soil protection fabrics used in

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disaster management, protective clothing (such as bullet proof vests) for security

personnel, fire-retardant fabrics for public places, etc.

19. With globalisation of Indian economy and the rise in the expectations &

capacity of the middle class, the market size for technical textiles has shown a

healthy growth of 18% during 2001-02 to 2007-08, and is expected to grow at 11%

per annum till 2012-13, and thereafter at 6-8% per annum till 2020 naturally.

However, if government interventions take place in the form of a stimulus, the

growth of technical textiles industry can be estimated at 12-15% per annum till

2020.

20. Speciality fibres are special man-made fibres used for manufacture in

Technical Textiles. The requirement / consumption of speciality fibres, therefore,

have direct correlation with the manufacturing base of technical textiles in the

country and its growth.

21. The proposed policy interventions in speciality fibre sector would enable

the technical textiles sector to attract an investment of Rs.50 billion by 2012; to

create additional employment opportunities for 12 lakhs persons by 2012, and to

grow at 12-15% CAGR.

22. A comprehensive Technology Mission of Technical Textiles is also

proposed to be launched.

3.3.6 Major Policy Initiatives Required to meet the Gap

3.3.6.A: Cotton

23. India will be a cotton surplus Nation in the next decade. For the Textiles

Ministry, therefore, supply side management issues are of vital importance which

need to be addressed in the National Fibre Policy to ensure adequate availability

and quality of spinnable cotton in the country.

24. The key issues involved in policy formulation include: (a) cotton

contamination, (b) improving quality, (c) improving infrastructure, (d) problem of

admixtures, (e) need for establishing uniform standards, (f) creation of testing

facilities, and (g) need for an Indian arbitration for imported cotton. The

responsibility for enhancing production rests with the Ministry of Agriculture. The

policy measures include creating an institutional framework for development of

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cotton fibre, improving irrigation facilities and water harvesting, and increasing

awareness amongst farmers for suitable agronomic practices.

Improving Supply Chain Management and Ensuring Cotton Security

25. After independence, most productive cotton lands became part of Pakistan

and Indian Union was left with short cotton production for large cotton based

Industry. This lead to serious shortage of cotton, and India turned from an

exporting country to a net Importer of long staple cotton. Cotton security for

domestic industry became a paramount need.

26. However, with various Governmental measures and agriculture extension

schemes to grow more cotton in the Country through Intensive Cotton

Development Program in 1971-72, and setting up of Technology Mission on

Cotton in 2000 coupled with release of Bt seeds for Commercial cultivation in

2002-03; the cotton production of the Country reached a record level of 30.7

million bales in 2007-08. With these developments, India became the 2nd largest

producer, consumer and exporter of cotton in the world. Minimum Support Price

(MSP) Mechanism safeguards the interest of cotton growers in the wake of fall in

kapas prices.

3.3.6.B: Cotton Export: Self Sufficiency in Cotton

27. Initially, cotton exports from India during the nineties were governed by

long-term cotton export Policy of the Government of India. As per this policy,

quota of 5 lakhs cotton bales including short staple non-spinnable Bengal Deshi

used to be released in the beginning of the season depending upon the availability

of surplus cotton. Thereafter the additional export quota used to be released in a

phased manner depending upon the availability of surplus cotton after meeting the

domestic consumption needs. A major portion of the quota was given to CCI.

Some portion of this quota was also allocated to Co-operative Institutions like

NAFED, HAFED, MarkFed, Maharashtra Federation etc. Since some of these

institutes did not possess sufficient basic infrastructure & marketing expertise;

therefore, CCI was facilitating in liquidating their quota. In late 1990s, residual

quota was also given to private traders in small quantities. During this quota

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system, Textile Commissioner’s Office was tasked with undertaking registration of

export contract. CCI, NAFED and other State Federations were under obligation to

give a Legal Undertaking (LUD) while private traders had to give Bank Guarantee

to ensure performance of Export Contracts. Now Maharashtra Federation,

GUJFED, RAJFED and most of the other State Federations have become defunct,

and are not involved in cotton marketing any more.

28. The Government of India with effect from July 2, 2001 had liberalised

cotton exports from the country, and placed the same under Open General License

(OGL). Thus, the system of allocation of cotton export quotas in favour of

different Agencies including CCI was dispensed with.

29. Cotton exports from India which used to be around 5 to 6 lakhs bales up to

1985-86, reached the level of 13 lakhs bales in 1986-87. Thereafter, there were

only meager exports from the country except for the year 1992-93 and 1996-97. In

2005-06, exports were 47 lakhs bales, and touched the highest level of 88.50 lakhs

bales in 2007-08.

30. In 2009-10, the actual export shipment from the Country is reported to the

extent of 73.28 lakhs bales. An additional 3.12 lakh bales are being shipped to

Bangladesh and Pakistan. Considering the cotton consumption of the Country as

260 lakhs bales, the carry over stocks shall be around 34 lakh bales, which is

equivalent to 45 days consumption only. Thus, carry over stock for next Cotton

Season shall be around 14.3 % of cotton production of 292 lakhs bales estimated

for Cotton Season 2009-10, resulting in very tight supply position of cotton for

Indian Textile Mills.

31. In the medium and long term, the stock to use ratio would be a determinant

of the exportable surplus. The National Fibre Policy, thus, seeks to improve supply

chain management with calibration of cotton exports, and putting in place credible

and transparent institutional mechanisms for ensuring India’s cotton security

commensurate with the growth envisaged in the sector.

32. In order to avoid repetition of such a situation (09-10) of over exports

resulting in shortages & disruption of supply of cotton to domestic textile industry,

tangible steps have been considered under the National Fibre Policy for future to

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ensure regular supply of quality cotton to Industry till the end of every cotton

season.

33. The National Fibre Policy envisages the following policy measures: Though

CCI is a major player for MSP operations, the National Fibre Policy envisages CCI

to undertake commercial operations so as to ensure secured supply of cotton to

textile mills at competitive prices. This shall obviate the possibility of cartelisation

for individual gains;

• After projecting cotton consumption of domestic mills vis-à-vis expected cotton production, availability of surplus cotton would be ascertained by Cotton Advisory Board. An Inter-Ministerial Committee of Secretaries under the Chairmanship of Textiles Secretary would, based on recommendations of Cotton Advisory Board and other factors; consider exportable surplus of cotton from the country, and also ensuring the prescribed carry over stock at the end of season;

• Textiles Ministry in consultation with ISRO/ Department of Space would put in place improved crop mapping of cotton so as clearly identify production and acreage;

• In consultation with Department of Revenue, Textiles Ministry would put in place an electronic data exchange system, that would ensure that every Shipping/ Dry port provides a platform for data exchange on cotton shipments on a weekly basis to the Textiles Commissioner.

34. The National Fibre Policy to the extent possible will seek to eliminate

export shipments to bonded warehouses in non-consumption countries, and shall

be instrumental in getting better per unit export realisation, which shall ultimately

benefit cotton growers of the country. Government would also seek to introduce a

separate price index for Indian cotton.

3.3.6.C: Cotton Yarn

35. Textiles Ministry would also initiate necessary policy interventions for

greater monitoring and streamlining of yarn exports to ensure adequate availability

to the handloom and garment sector. 2009-10 has witnessed significant price

surges in the yarn industry that has resulted in significant distortions in the supply

chain to the handlooms and garments sector. The policy interventions envisaged by

the Ministry of Textiles to stabilise prices of cotton yarn for improved supply

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chain management for textile yardage, handloom weavers and garment sector are

the following:

• Yarn export registration which has commenced from April 2010 would be firmly established as an institutional strengthening mechanism.

• A Yarn Advisory Board would be established to formulate a Yarn Balance Sheet for the Country. The Yarn Advisory Board comprising of representatives of stakeholders, ministries of Government of India and the Industry would function on the lines of the Cotton Advisory Board and would be an enabling mechanism for considered policy making to ensure adequate supplies to downstream industry;

• Ministry of Textiles would intensify the Test Check of Hank Yarn Obligations through the Textiles Commissioner to ensure that the industry fully adopts the prescribed norms for ensuring adequate availability of hank yarn to the handloom sector. The Ministry of Textiles would advise the Textiles Commissioner to explore necessary legal and regulatory options available under the Essential Commodities Act to ensure that the mandatory obligations of the Spinning Industry to the Handlooms Sector are duly fulfilled.

• In addition to the above, Textiles Ministry has constituted a committee under chairmanship of Development Commissioner (Handlooms) to examine all issues of Hank Yarn Obligations to ensure adequate availability of hank yarn to weavers. The Committee’s recommendations would be considered for future policy interventions.

• Appropriate fiscal measures on yarn would be considered in consultation with Finance Ministry to improve domestic availability of yarn if the trigger point prescribed for yarn exports by the Yarn Advisory Board is breached.

3.3.6.D: Improving marketing and branding of Cotton

36. Grading of Kapas is imperative for improving the marketing and branding

of Kapas and lint. The grading system by an independent agency, regulated ware

housing system, better contracting system with risk management instruments, will

raise the dynamics of Indian cotton to a greater level of acceptance, fine image and

remarkable branding. The National Fibre Policy envisages the following policy

measures:

• A structured mechanism for promotion of cotton use would be developed, in order to sustain domestic consumption on a long term basis, so as to maintain the strength of cotton economy.

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• Pilot projects for marketing of lint by the farmers, instead of kapas would be considered. This would result in higher income to the farmers and accelerate cotton production.

• The role and functions of Government agencies involved in marketing of cotton fibre will be looked into for any reorientation of their role towards inclusion of price stability.

II. Competitiveness of Indian Textiles and Clothing Industry

3.4 Supply Chain Management

The Indian textile and clothing industries have one of the longest and most

complex supply chains in the world, with existence of many intermediaries

between the farmer and the final consumer. Each intermediary not only leads to

lengthening of lead times, but also adds to costs. By the time the product reaches

the final consumer, price of it increases manifold. This has to be reduced if India

has to become competitive. The industries would need to develop supply chain

management (SCM) perspective, and rationalise costs at each stage in the entire

supply chain, and not only within their own units. Hong Kong apparel industry did

take this initiative, and has managed to shrink the supply chain in terms of lead

times, as well as costs.

In recent years modern garment units are increasingly emphasising on

supply chain management (SCM) which refers to “delivery of enhanced customer

and economic value through synchronised management of the flow of physical

goods and associated information from sources to points of consumption.” In a

dynamic environment where demand is uncertain and significantly seasonal, where

the product life cycles are short and where the competitive intensity is high -

companies that are able to perform functional integration tend to outperform others

(Verma, 2002).

The supply chain in India is extremely fragmented mainly due to the

government policies and lack of coordination between industry and relevant trade

bodies. It is noteworthy that the countries that are globally competitive are the ones

which have a significantly consolidated supply chain. Some of the countries with

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much less fragmented supply chains are Korea, China, Bangladesh, Turkey,

Pakistan and Mexico, and these are close competitors of India in the global market

for exports.

3.5 Lack of Dyeing Facilities

The major problem facing the structure of textile and clothing sector is lack

of good infrastructure to develop dyeing/processing units. The small fabrics

producing units belonging to the powerloom sector are not in a position to come

out with better dyeing units, which is economical at large size, and require huge

investment. But the large dyeing units find its survival very uneconomical for

catering to the needs of small powerloom units producing in small lots. One dyeing

unit catering to the processing requirement of a large number of powerloom units

is not working well due to spread of units, and increase in transport and

management costs which make co-ordination difficult. A few powerloom units

have experimented the installation of modern dyeing units in a co-operative

arrangement, but this has yet to become a widespread phenomenon. This lack of

dyeing facilities is badly affecting the quality of fabrics available for garment

units.

This explains the poor quality fabric available to Indian garment producers

compared to international standards. This affects our competitiveness in the

apparel sector. A large number of garment units producing high value and

designer garments products resort to import for good quality fabrics. Thus there

exists a major gap in the garment value chain. This mismatch needs to be corrected

and Government incentives are required for targeting incentives in a proper

direction to allow good dyeing infrastructure to develop.

3.6 Low Labour Cost in Production of Indian Apparel

Despite some glaring problems of the Indian apparels industry, there is

immense potential for growth for Indian apparel exports. Garment sector is highly

labour intensive in India, and thus labour cost assumes much significance in per

piece cost of garment production. India compares very favourably across the

developing countries in terms of low labour costs for the same skill of labour.

Bangladesh, Pakistan and Vietnam are, however, countries having lower labour

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costs compared to India. However, empirical evidence suggests that low wages are

not always a factor of competitiveness particularly in case of good quality designer

garments. Quite often high wages are paid to skilled labourers as remuneration for

the high levels of skill and productivity which, in turn are important factors of

export competitiveness. It is observed that export oriented garment units pay

higher wages to their labourers than the domestic market oriented units. This

difference in wage rates is attributed to the unique and indispensable skills of

designers, pattern makers and craftsmen, as well as to better-trained cutters and

tailors employed by exporting firms. However, the size of units is also crucial, and

quality is not always the deciding factor for wage rate. Currently India has a 3.4

per cent share in the global market for textiles and clothing. Proliferation of retailer

driven global supply chains in recent times means that the highest value activities

are in designing, distribution, branding and marketing. For this, it is important that

both backward and forward linkages be established domestically. India already

produces good quality yarn, but integration in the industry is weak as is the

capacity to deliver quality products on a timely and flexible schedule. Policy-

makers must now identify a strategic direction for the industry to ensure that

sectoral initiatives impel rather than impede growth (G. Badri Narayanan,

Economic and Political Weekly, February 26, 2005, pp. 905-907).

3.7 Competitiveness of Indian Textiles and Clothing

Competitiveness is a function of factors related to cost of production, as

well as those related to non-price factors such as delivery schedules, reliability of

producers, and such intangible factors like image of the country/company and

brand equity. Together, they define the competitive sinews of a product to compete

under free market conditions. Findings presented in this section of inter-country

comparison of competitiveness of Indian Textiles are based on the Study carried

out by National Council of Applied Economic Research (NCAER), New Delhi

(2009), titled, Assessing the Prospects for Indian Textile and Clothing Sector,

hereafter referred to as NCAER study (2009).

In the sphere of cotton yarn, India is one of the lowest cost producers.

International Textiles Manufacturers Federation (ITMF) statistics, 2006 shows

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comparative cost of production of yarn and fabric of some major textiles producing

countries - India, Brazil, China, Italy, Korea, Turkey, and USA. Indian cost of

Ring Yarn at US$2.13 per kg is much lower than USA (US$2.81 per kg.), Italy

(US$3.20 per kg.) and China (US$2.89 per kg.) during 2006 (Text Table 3.2).

Cheap availability of raw material and low labour cost are the major causes of low

cost of production of ring yarn in India. In O-E yarn production, India is much

competitive as compared to other countries. The analysis based on ITMF data

includes Pakistan in their cost comparative analysis. This is one major limitation of

ITMF data as Pakistan is one of India’s key competitors. Gherzi Eastern Limited

data helps in making comparison in this regard. Gherzi study shows that India’s

labour cost is very close to China’s, but higher than that of Pakistan, which gave

Pakistan a major advantage. Power cost in India is also quite high compared to

Pakistan and China. The cheap cotton availability is the major advantage India

enjoyed compared to even Pakistan and China.

The cost comparison of other items using ITMF data show that India is

much competitive in the international export market in case of woven ring yarn

fabric shown by ITMF data. In 2006, total fabric cost for India was US $ 0.627 per

metre. India’s closest competitor was Brazil with per metre fabric cost being US$

0.715. Chinese, US and Italian fabric incurred per metre fabric cost of US $0.740,

US $0.837, and US $1.004 respectively (Text Table 3.2). Here also raw material

and labour cost components were the major determining factors for

competitiveness of Indian woven fabric. Similarly, in case of knitted ring yarn

fabric, India is much competitive as compared to its competitors. In 2006, per

metre cost of knitted fabric was US $0.511 which was much less than its

competitors. In 2006 its closest competitor was Korea with per metre knitted

fabric cost of US $0.621 (Text Table 3.2). Here also raw material and labour cost

components were the most important factors for its competitiveness. It is notable

here that in case of both woven and knitted fabric, Chinese fabric had a somewhat

lower labour cost but it is more than compensated by cheap raw material

availability in India.

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The above analysis reflects that India’s competitiveness is confined to grey/

unprocessed products such as grey yarn and grey fabric. Dyeing and processing

segment of the Indian textiles industry is not so technologically well advanced due

to restrictive policy regime in the past. This is reflected in the relatively inferior

quality of domestically dyed & processed yarn and fabric. This has resulted in a

comparatively much larger share of grey yarn and fabric as compared to that of

dyed and finished yarn and fabric in Indian textiles exports. During 2007-08, the

exports of cotton woven fabric amounted to US $1035 million out of which dyed

and printed cotton woven fabric accounted for US $400 million, i.e., 38.6% of the

former. Similarly, exports of man made woven fabric during 2007-08 was of the

order of US $804 million out of which dyed and printed woven fabric was of US

$296 million, i.e., 36.7% of the former. In case of knitted and crocheted fabric, the

condition is worse. In this segment, total export is to the tune of US $90.34 million

during 2007-08, out of which 25.3% is in the form of dyed and/or printed products.

This shows the urgent need for the modernisation of the dyeing and processing

segment of the industry along with other value added processing stages.

The low realisation per unit value of export is another indicator of low

value addition. The unit value realisation for woven cotton and blended fabrics is

US$1.57 per sq. mt. In case of man made fabric exports, it is US $1.64 and for

knitted and crocheted fabric (of both cotton and manmade fibres), it is US $4.03.

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Text Table 3.2: International Cost Comparisons for Yarn and Fabric in Seven Countries - 2006

Cost Index: Italy = 100 Type of Cost Brazil China India Italy Korea Turkey USA Brazil China India Italy Korea Turkey USA

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total Costs of Ring Yarn (US$/kg. yarn) 2.65 2.89 2.13 3.20 2.54 2.61 2.81 83 90 67 100 79 82 88 Total Cost of O-E yarn (US $/kg. yarn) 1.85 2.28 1.52 1.96 1.80 1.89 1.75 95 116 78 100 92 96 89 Manufacturing Costs of Ring Yarn Weaving (US $/metre of fabric) 0.21 0.19 0.22 0.40 0.25 0.23 0.30 53 48 55 100 63 58 75 Manufacturing Costs of O-E Yarn Weaving (US $/metre of fabric) 0.20 0.18 0.22 0.43 0.26 0.24 0.31 47 42 51 100 60 56 72 Total Cost of Woven Ring – Yarn Fabric (US $/metre of fabric) 0.715 0.740 0.627 1.004 0.733 0.728 0.837 71 74 62 100 73 73 83 Total Cost of Woven O-E Yarn Fabric (US $/metre of fabric) 0.662 0.748 0.595 0.911 0.704 0.707 0.741 73 82 65 100 77 78 81 Manufacturing Costs of Ring Yarn Knitting (US $/metre of fabric) 0.033 0.027 0.020 0.070 0.029 0.024 0.045 47 39 29 100 41 34 64 Total Cost of Knitted Ring –Yarn Fabric (US $/metre of fabric) 0.643 0.692 0.511 0.806 0.612 0.624 0.691 80 86 63 100 76 77 86 Manufacturing Costs of O-E Yarn Knitting (US $/metre of fabric) 0.04 0.031 0.025 0.090 0.035 0.029 0.058 46 34 28 100 39 32 64 Total Cost of Knitted O-E Yarn Fabric (US $/metre of fabric) 0.70 0.846 0.568 0.791 0.679 0.705 0.685 89 107 72 100 86 89 87 Source: ITMF (International Production Cost Comparison 2006), as given in the NCAER Study, 2009. (p.161)

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The mill sector is copetitive only in a few products, which are mainly

produced on a large scale. Modern looms run fast, and size of production in a

given lot is important for achieving scale economies. Mill sector loses its

competitive advantage in case the product demand is in smaller lots to meet the

requirement of small garment units spread all over the country. Apart from that,

mill sector is finding it hard to compete in other products.

The cause for this state of affairs is that powerloom segment is cost

competitive. Handlooms sector is losing its competitiveness, and its share in

production is declining fast. In the field survey conducted by NCAER, New Delhi

during 2008-09, it was found that cotton bed sheet made in powerloom costs

Rs.14.32 per sq. mt. On the other hand, similar bed sheet costs Rs.29.30 per sq. mt.

if made in handloom. The sarees made of blend of cotton and manmade fibres per

sq. mt. costs Rs.15.51 and Rs.40.76 in powerloom and handloom, respectively.

Handloom sector is efficient and competitive for a few varieties only.

The analysis of average realisation of price of fabrics produced in

powerloom and mill sectors shows a wide gap in the rates of the two sectors. The

comparison of market prices of cloth produced in the two sectors during March

2008 indicates that the price of grey cotton cloth produced in powerloom was Rs.

15.24 per metre as compared to ex-mill price of cotton cloth at Rs.34.37. Market

price of grey synthetic cloth produced in powerloom was Rs.8.90 per meter as

compared to ex-mill price of the same cloth as Rs.54.30 per metre. In case of

blended cloth produced in the two segments, the prices were Rs.17.15 and Rs.

46.89 per metre, respectively. Even if one adds the cost of dyeing and any other

value addition, assuming better processing facilities in case of mill sector, the gap

would still be too high. The gap is wide even to discount for any quality of

fabrics.

The analysis of cost using NCAER 2008-09 survey data brings out the fact

that despite significant economic reforms since 2000, the mill sector is not able to

withstand the competition from powerloom sector. The future scenario is also

unlikely to change in a significant manner, and powerloom sector is likely to

remain competitive vis-a-vis other sectors. In fact, the handloom sector is finding it

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extremely difficult to survive, and is cornpetitive only in a few artisanal products.

The share of mill sector is unlikely to grow rapidly in future as well.

III. India’s Position in Textiles and Clothing Exports -

Composition (1994-2009)

3.8 Analysis Pattern of T&C Exports and Imports

Exports of textiles and clothing of India has been analysed for a 15-year

period (1994-95 to 2008-09). Aggregate picture of exports of the sector has been

divided into contribution of cotton textiles and non-cotton textiles. In each of these

categories, the contribution of low value added segments (fibre, yarn, and fabrics),

and high value added segments (readymade garments, and made-ups) has been

examined for time series data, and for four years in particular, 1994-95, 1999-

2000, 2004-05, and 2008-09. Along with absolute values of exports of these

components in Rs. billion, percentage change over the previous year, and

percentage share have been calculated. These are supplemented by compound

annual growth rate (CAGR) in percentage for four periods: 1994-2000, 1999-2005,

1994-2005, and 2004-09. January 1995 – December 2004 is the period of

operation ATC. Period from January 2005 refers to post-ATC regime. Similar

analysis has also been carried out for T&C imports of India for 1998-2009.

Using the method of least squares to find a regression line, trend lines of

various parameters have been drawn based on the time series data for 11 years

(1998-1999 to 2008-09). These are presented in Figures 3.1 to 3.12. Figures 3.1 to

3.3 refer to T&C exports and imports. Figures 3.4 to 3.8 refer to exports of

combined segments of fibre, yarn, fabrics, readymade garments, made-ups, and

total textiles for 1998-2009, and exports of cotton components and total cotton

textiles for 1998-2009. Figures 3.9 to 3.12 refer to imports of combined segments

of fibre, yarn, fabrics, readymade garments, made-ups, and total textiles for 1998-

2009, and imports of non-cotton components and total non-cotton textiles for

1998-2009. The trend lines are drawn based on derived trend values of exports,

and imports. They present annual average increase of each parameter during the

specified period. India’s position in the imports of textiles and clothing into the

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major textile markets of USA and European Union (EU) has also been analysed

using the data of recent years to highlight the competitive environment in textiles

among developing and developed countries. Utilising the data available from the

Compendium of International Textile Statistics 2009 of the Union Ministry of

Textiles, region-wise and country-wise analysis of the globe along with global

trends for T&C exports and imports, and the role of developing countries, with

focus on Asian region has also been attempted for 2000 to 2009, to highlight the

contrast between cost efficient developing countries and high cost developed

economies. These details are given in chapter IV.

3.9 Indian Textiles and Clothing Exports – Overall Picture

The exports of Indian textiles including fibre, yarn, fabric, RMG, made-

ups, and some other items excluding handicrafts reached a level of Rs.1058.64

billion and US $22.38 billion during 2009-10 as against the exports of Rs.986.52

billion and US $20.98 billion in 2008-09, marking a growth of 7.3 and 6.7 per

cent, respectively (Table 3.8).

Indian textile exports shows better performance during the post-quota

period than the ATC period. CAGR for the total textile exports during the period

2004-2009 in Rs. terms recorded 11.3 per cent as CAGR of 10.5 per cent during

1994-2005; and in US $ terms 10.5 per cent against 6.4 per cent, during 1994-2005

respectively. It indicates that exports of textiles from India during 2004-09, have

increased steadily over the last few years particularly after 2004-05 when textiles

export quota restrictions ceased to operate.

The volume of Indian textile exports, could not register faster growth as

compared to certain other countries due to various reasons like constraints of

infrastructure, high power and transaction cost, incidence of state level cess and

duties, lack of state-of-the-art technology, etc.

In the year 2007-08 the textile exports of India suffered badly due to sharp

appreciation in Rupee vis-a-vis the US $. Although the rupee has depreciated

sharply vis-a-vis the US dollar since April 2008, the exports prospects of the

Indian textile sector continues to be adversely affected. Some of the reasons

attributed to this decline are the financial sector melt down and economic

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slowdown in international markets, increased cost of production because of

increasing raw material costs, power and other input costs which have affected the

profitability of textiles and garment units in India and their exports. The liquidity

crunch is another factor that is affecting the industry. In such a situation the

positive impact of rupee depreciation had been washed away.

In 2009-10, Indian T&C exports reached a level of Rs.1058.64 billion, and

in 2008-09 Rs.986.52 billion, with growth rates of 7.3% and 9.3%, respectively;

compared to Rs.902.33 billion level in 2007-08 with growth rate of 2.5%. This

indicates that Indian textile exports has gradually recovered after sudden decline of

growth rate in the years 2006-07 and 2007-08 (Table 3.8-A).

In case of country-wise analysis, USA occupied the first position having

21.01 per cent market share of Indian textile exports followed by UK, German F

Rep, UAE, China PRP, France, Italy, Bangladesh, Turkey and Spain, etc. during

2007-08.

USA continued its declining trend in post-quota period, and reached a level

of 20.44 per cent market share, and stood in the first position in 2008-09 followed

by UK, United Arab Emirates, German FRP, France, Italy, Spain, Bangladesh,

China PRP and Turkey, etc (Table 24-B).

China and Bangladesh emerged as new markets for Indian exports. India

gradually recovered its share in UAE which showed sudden decline in 2005-06

due to heavy competition.

T&C export data presented here does not include textile machinery exports

from the country. The Indian Textile Accessories and Machinery Manufacturers’

Association in their press release (The Hindu, December 18, 2010) states as

follows : exports of textile machinery in 2009-10 was Rs.45.0 billion as against

Rs.40.8 billion in 2008-09. The Association is confident of 20% growth in 2010-

11. Exports is mainly to Asian countries, especially, Bangladesh, Thailand,

Vietnam, and Pakistan. Spinning machinery is main item of export. The annual

installed capacity of the textile engineering industry is over Rs.80 billion. The

capacity utilisation was 76% in 2007-08. However, with recession, the utilisation

dropped to 53% in 2008-09. It is hoped that with the surge in demand for textile

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machinery and accessories, the textile engineering industry will be able gear up its

capacity further to meet the needs of the industry.

Projected market size of textile industry by the terminal year of the

Eleventh Plan (2011-12) is as follows. In 2005-06 total textile market of India was

US $47 billion, shared by Exports US $17 billion and domestic US $30 billion.

(Report of the Working Group on Textiles & Jute Industry for the Eleventh Five

Year Plan, 2007-12).

Assumed growth rates during the Eleventh plan are 16% for total textile

market, 22% for exports and 12.25% for domestic market.

By 2011-12, the market size is expected to increase to US $115 billion, with

US $55 billion for exports, and US $60 billion for the domestic market. The

present picture in 2009-10 is US $55 billion total market size, with US $22.4

billion as exports, and US $32.6 billion towards domestic market size.

According to the report of the working Group on Textile & Jute Industry for

the Eleventh Five Year Plan (2007-2012), segment-wise incremental machinery

and Investment requirement during the Eleventh Plan is Rs.1,50,600 crore.

For spinning industry, Rs.50,200 crore for 29.25 million spindles (8.25 for

replacement of machinery).

For weaving segment, Rs.20,200 crore for 1,08,850 shuttleless looms,

98,500 auto looms, 59,100 plain looms, and 39,400 semi-auto looms.

For knitting segment, Rs.2,400 crore for 9,400 M/cs.

For processing segment, Rs.56,000 crore for 38 billion square meters.

For garment segment, Rs.21,800 crore for 14.5 lakh M/cs.

Indian textile industry is taking support from Government of India through

TUF scheme, Technology Mission on Cotton (TMC), FDI and other segment-wise

institutions established by Government of India to meet the requirement of finance

for modernisation.

3.10 Shift towards Value Addition

Indian textile exports trade has been shifting towards finished goods from

intermediate products and raw material as can be seen from the fact that higher

growth rate recorded by the high value added RMG with a CAGR 14.3 per cent

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followed by the fabric and yarn with a CAGR 7.7 and 6.0 per cent, respectively

during the post-quota period (2004-09). In case of ATC period (1994-05), RMG

showed CAGR 7.6 per cent lower than the growth rate of fabric and yarn. This

trend indicates Indian textile exports shifting towards value added goods during

the post-ATC period (Table 3.35-B). Indian textile made-ups is another high value

added product segment which also showed higher growth during the second half of

the ATC period (1999-2005) with a CAGR 17.7 per cent, followed by the fabric

8.6 per cent, and RMG 7.4 per cent. This indicates that Indian made-ups market

integrated with the world market earlier than the integration of RMG. During the

earlier ATC period 1994-2000 yarn exports recorded higher growth with a CAGR

18 per cent followed by the fabric 9.5 per cent, RMG 7.8 per cent, and made-ups

3.4 per cent. This situation clearly indicates that Indian textile exports market

followed the global trend of shifting trade towards value addition.

Fibre exports recorded overall high with a CAGR 43.1 per cent during the

post quota period as against 21.8 per cent growth during the ATC period. This

indicates that the demand for fibre increases in response to the faster progress of

world textile trade during the post-quota regime and also reveals that India has

greater untapped potential for moving in the direction of higher value addition in

the textile industry in view of the excess cotton fibre raw material availability than

consumption with in the country.

Among all the segments of total textile exports, RMG exports recorded

highest percentage share in total textile exports with 51 per cent followed by

fabrics 15.7 per cent, yarn 11.6 per cent, made-ups 11 per cent, and fibre 4.5 per

cent during 2008-09. In this period, fibre exports showed lower percentage share in

total textile exports with higher growth rate, among all the segments. In case of

value added products, RMG exports segment was the greatest beneficiary in the

post-ATC period with high growth and high share.

3.11 Cotton Textile Exports Segment

During the post-ATC period cotton fibre exports segment recorded the

highest growth with a CAGR 61.5 per cent as against a CAGR 37.7 per cent in

ATC period. In case of value added products, cotton RMG showed better

149

performance than the cotton yarn and cotton fabric. CAGR of the cotton RMG

exports increased from 8.7 per cent in the ATC period to 13.7 per cent in post-

ATC period. In contrast CAGR of yarn and fabrics decreased from 8 and 2.5 per

cent in ATC period to 5.2 and 2 per cent in post-ATC period, respectively. Cotton

made-ups exports segment has not shown better performance after integration of

the Indian textile market with the world market. However during the second half of

the ATC period (1999-05), it recorded higher growth rate with a CAGR 15.7 per

cent. This situation indicates cotton textile exports segment also shifting towards

value addition with the closure ATC. It also indicates that India has strong cotton

raw material base. Exports of cotton fibre surplus indicates the potential of the

country to move towards value addition.

Among all the segments of cotton textiles export. cotton RMG showed the

highest percentage share in the total with 64 followed by yarn 11.8, made-ups

11.7, fabrics 7.6, and fibre 4.9 during 2008-09. In this period, cotton fibre exports

showed the lowest percentage share among all the segments. However, in contrast,

cotton fibre exports recorded the highest exports growth during the post ATC

period with 61.5 per cent. In case of value added , cotton RMG dominates all other

segments with its lion’s share of 64 per cent in 2008-09 and the highest CAGR

13.7 per cent during the post-ATC period. Percentage share of the cotton fabric

and cotton yarn in total cotton textile exports decreased from 14.4 and 10.4 per

cent in ATC period to 11.8 and 7.6 per cent in post-ATC period, respectively. This

also indicates that cotton textile trade is shifting towards value addition.

3.12 Non-cotton Textile Exports Segment

During the post-ATC period, non-cotton fibre growth decreased with a

CAGR 25.1 per cent from 25.7 per cent of ATC period. In case of value added

products, non-cotton RMG and non cotton made-ups showed better performance

than the non-cotton yarn and non cotton fabric. CAGR of the non-cotton RMG

exports increased from 4.8 per cent in the ATC period to 16 per cent in post-ATC

period. In contrast, CAGR of yarn and fabrics decreased from 22.3 and 16.3 per

cent in the ATC period to 7.3 and 10.4 per cent in the post-quota period,

respectively. During 1999-2005 non-cotton made-up exports showed higher

150

growth with a CAGR 24.8 per cent than non-cotton yarn, fabric and RMG exports.

This indicates that non-cotton made-up exports segment has been integrated with

global market earlier to that of RMG. This situation reveals that non-cotton textile

exports is also shifting towards value addition with the closure of ATC, and also

indicates India has the potential towards value addition in non-cotton textile

industry, in view of the significant growth in non-cotton fibre exports.

Among all the segments of non-cotton textiles exports, non-cotton RMG

showed the highest percentage share in total non-cotton textile exports with 37.8

per cent followed by non-cotton fabric 32.5, non-cotton yarn 13.4, non-cotton

made-ups 11.7, and non-cotton fibre 4.6 during 2008-09. In this period, non-cotton

fibre exports showed lower percentage share in total non-cotton textile exports

among all the segments. But in contrast non-cotton fibre exports recorded higher

export growth during the post-ATC period than other segments. In case of value

added products, non-cotton RMG, showed higher percentage share in total non-

cotton textile exports followed by the non-cotton fabric exports, yarn exports and

made-up exports. The percentage share increased for the non-cotton RMG, fabric

and made-ups from 28.1, 29.6 and 9.1 in 2004-05 to 37.8, 32.5 and 11.7 in 2008-

09, respectively as against the exports of non-cotton yarn decreasing from 13.6 per

cent in 2004-05 to 13.4 per cent in 2008-09. This indicates that non-cotton textile

exports segment is also shifting towards value addition.

3.13 Interpretation of Textile and Clothing Exports on the Basis of Growth

Rates in Trend Equations and Hypothesis Tables

The trend equations for textile exports reveal as follows:

Text Table 3.3: Annual Average Increase in T&C exports during 1998-2009

Category of Textiles Exports Overall Growth

(Value in Rs. crore) Fibre 796 Yarn 584

Fabric 675 RMG 2,804

Made-ups 810 Total Textiles 6,040

Total textile exports (US $ million) 1,327 Total textile imports (US $ million) 277

151

As noticed from the above data, weightage for textile exports is, thus, in

favour of higher value added items of RMGs and made-ups. Raw cotton exports is

an indication of the surplus available in the country after meeting domestic

consumption. It also indicates potential for further value addition.

According to the above table, during the period 1998-2009, the overall

growth rate of T&C exports and growth rate for high value added exports growth

rate (RMG and Made-ups) are higher than the growth rate for low value added

exports (fibre, yarn and fabric).

RMG exports shows higher growth rate than Made-ups exports growth rate

in the high value added exports whereas the growth rate of fibre is higher followed

by the fabric exports and yarn exports in the low value added exports category.

From the above situation, we can conclude that the Indian T&C exports

trade moves towards higher value addition.

Analysis of textiles exports of 2008-09 reveals as follows: cotton textiles

59.5%, non-cotton textiles 40.5%. Break up of segments of combined textile

exports is as follows: fibre 4.5%, yarn 11.6%, fabrics 15.7%, RMG 51.0%, made-

ups 11.0%, and others 6.2%.

Hypothesis Tables 3.1(a) & (b), 3.2(a), (b) & (c), 3.3(a) & (b) presented

later in this chapter deal with textile exports. Hypothesis I, “removal of

quantitative restrictions on exports of textiles and clothing to developed countries

from 2005 has made positive impact on the exports of the sector. This is due to

increase in both cotton and non-cotton products,” has been proved right.

Hypothesis II, “percentage share of exports of high value added products, mainly

readymade garments (RMGs) and made-ups to total textiles exports has been

steadily increasing, and that of low value added products decreasing,” has been

proved right. Hypothesis III, “regardless of growth rate of exports of combined

T&C sector (cotton, non-cotton and others), cotton textiles and clothing exports

has been consistently growing at a faster pace,” has been disproved. The details are

given later in the hypotheses testing section of this chapter.

152

Fig. 3.1: ## Textile Exports and Overall Exports

Source: Table 3.8(A)

The Trend equations for Textile Exports and Overall Exports in US $

million for the period 1998-99 to 2008-09 are given below:

Fig. 3.1 : ## Trend lines fitted based on the derived Trend Values of Textile

Exports and overall Exports

1. The annual average increase in Textile Exports of India is US $ 1,327 million.

2. The annual average increase in Overall Exports of India is US $ 15,096 million.

Trend Equation R2 Sig Remarks

Textile Exports = 6938 + 1327 t 91.6 0.000 Good Fit

Overall Exports = - 5442 + 15096 t 89.4 0.000 Good Fit

153

Fig.3.3: ## Textile Exports and Textile Imports

Source: Tables 3.8(A) and 3.9(A)

The trend equations for Textile Exports and Textiles Imports in US $

million for the period 1998-99 to 2008-09 are given below:

Trend Equation R2 Sig Remarks

Textile Exports = 7151 + 1274 t 91.2 0.000 Good Fit

Textile Imports = 437 + 277 t 98.5 0.000 Good Fit

Fig.3.3: ## Trend lines fitted based on the derived Trend Values of Textile

Exports and Textile Imports

1. The annual average increase in Textile Exports is US$ 1,327 million.

2. The annual average increase in Textile Imports is US$ 277 million.

154

Fig. 3.4: ## Exports and Imports of Raw Cotton

Source: Tables 12(A) and 12(B)

The trend equations for Exports and Imports of Raw cotton (quantity in 000

tonnes) for the period 1998-99 to 2008-09 are presented below:

Trend Equation R2 Sig Remarks

Quantity Exports = -327 + 118t 53.7 0.01 Not Fit

Quantity Imports = 226 - 5.81 t 4.2 0.545 Not Fit

Fig. 3.4: ## Trend lines fitted based on the derived Trend Values of Exports and

Imports of Raw cotton.

1. The annual average increase in Raw Cotton in EXPORTS is 118 (‘000) tonnes.

2. The annual average increase in Raw Cotton in IMPORTS is -5.18 (‘000) tonnes.

155

Fig. 3.5 : ## EXPORTS: FIBRE, YARN, FABRICS, AND TOTAL

Textiles

Source: Tables 3.14(A) ,3.15, and 3.16

The trend equations for Exports of Fibre, Yarn, Fabrics, and Total Textiles

in Rs. crore for the period 1998-99 to 2008-09 are given below:

Trend Equation R2 Sig. Remarks

FIBRE = - 2064 + 796 t 61.2 0.004 Good Fit

YARN = 5793 + 584 t 86.5 0.000 Good Fit

FABRICS = 6706 + 675 t 88.5 0.000 Good Fit

TOTAL Textile = 29469 + 6040 t 96.3 0.000 Good Fit

Fig. 3.5: ## Trend lines fitted based on the derived Trend Values of Exports of

Fibre, Yarn, Fabrics, and Total Textiles

1. The annual average increase in FIBRE in EXPORTS is Rs. 796 crore. 2. The annual average increase in YARN in EXPORTS is Rs. 584 crore. 3. The annual average increase in FABRICS in EXPORTS is Rs. 675 crore. 4. The annual average increase in TOTAL Textiles in EXPORTS is Rs. 6,040 crore.

156

Fig. 3.6: ## EXPORTS: RMG, MADE-UPs, AND TOTAL Textiles

Source: Tables 3.14 ,3.17, and 3.18

The Trend equations for Exports of RMG, Made-ups, and Total Textiles in

Rs crore for the period 1998-99 to 2008-09 are given below:

Trend Equation R2 Sig. Remarks

RMG = 14293 + 2804 t 91.6 0.000 Good Fit

MADE-UPS = 2554 + 810 t 93.2 0.000 Good Fit

TOTAL Textile = 29469 + 6040 t 96.3 0.000 Good Fit

Fig.3.6: ## Trend lines fitted based on the derived values of Exports of RMG,

Made-ups, and Total Textiles.

1. The annual average increase in RMG in EXPORTS is Rs. 2,804 crore. 2. The annual average increase in MADE-UPs in EXPORTS is Rs. 810 crore. 3. The annual average increase in TOTAL Textiles in EXPORTS is Rs. 6,040 crore.

157

Fig. 3.7: ## COTTON EXPORTS: FIBRE, YARN, FABRICS, AND

TOTAL Cotton Textiles

Source: Tables 3.14(A) ,3.15, and 3.16

The Trend equations for cotton Exports of Fibre, Yarn, Fabrics, and Total

Textiles in Rs. crore for the period 1998-99 to 2008-09 are given below:

Trend Equation R2 Sig. Remarks

FIBRE = - 1875 + 657 t 54.6 0.009 Good Fit

YARN = 4698 + 246 t 71.3 0.000 Good Fit

FABRICS = 4086 + 14.4 t 2.6 0.638 Not Fit

TOTAL = 19192 + 3646 t 95.3 0.000 Good Fit

Fig. 3.7: ## Trend lines fitted based on the derived values of cotton Exports of

Fibre, Yarn, Fabrics, and Total cotton Textiles

1. The annual average increase in FIBRE in COTTON EXPORTS is Rs. 657 crore.

2. The annual average increase in YARN in COTTON EXPORTS is Rs. 246 crore.

3. The annual average increase in TOTAL Cotton Textiles EXPORTS is Rs. 3,646 crore.

4. The Component FABRICS is not significant,; hence, we eliminate the result.

158

Fig. 3.8: ## COTTON EXPORTS: RMG, MADE-UPs, AND TOTAL

Cotton Textiles

Source: Tables 3.14 ,3.17, and 3.18

The trend equations for cotton Exports of RMG, Made-ups, and Total

cotton Textiles in Rs. crore for the period 1998-99 to 2008-09 are given below:

Trend Equation R2 Sig. Remarks

RMG = 9717 + 2247 t 94.4 0.000 Good Fit

MADE-UPS = 2567 + 482 t 84.8 0.000 Good Fit

TOTAL = 19192 + 3646 t 95.3 0.000 Good Fit

Fig. 3.8: ## Trend lines fitted based on the derived Trend Values of cotton

Exports of RMG, Made-ups and Total cotton Textiles

1. The annual average increase in RMG in COTTON EXPORTS is Rs. 2,247 crore.

2. The annual average increase in MADE-UPs in COTTON EXPORTS is Rs. 482 crore.

3. The annual average increase in TOTAL Textiles in COTTON EXPORTS is Rs. 3,646 crore.

159

3.14 Indian Cotton Textiles in Global Context (Yarn, Fabrics, and Made-

ups) Text Table 3.4: World Trade in Total Textiles and Cotton Textiles (Yarn, Fabrics, and Made-ups), and India’s Share, Category-wise - Value of Exports (2002 - 08), Percentage

Change (2007 and 2008), and CAGR (2002-08) (Value in US $ billion)

Text Table 3.4 (Continued)

Source: Comtrade, published in Texprocil, India, Annual Reports 2007-08 and 2008-09.

Text Table 3.4 presents the picture of exports of the world and India during

2002-08, for total textiles and cotton textiles, as covered by TEXPROCIL-namely,

yarn, fabrics and made-ups, and total of the three categories.

Global textile trade of the three categories covered in the table recorded

growth with a CAGR of 8.3 per cent during the period 2002-08, increasing from

2008 2007 2006 2005 2002 Category

Total Cotton Total Cotton Total Cotton Total Cotton Total Cotton

1 2 3 4 5 6 7 8 9 10 11

Yarn 35.49 10.2 37.56 10.7 34.31 9.91 32.03 9.41 26.3 6.7

Fabrics 128.55 57.38 123.81 55.43 109.97 49.10 115.31 47.70 83.9 35.0

Madeups 71.31 34.52 65.59 31.86 58.61 28.10 55.62 27.79 35.2 18.3

Total 235.35 102.1 226.96 97.99 202.89 87.11 202.96 84.90 144.5 60.0

of which India’s Trade

Yarn 2.9 1.85 2.94 1.78 2.60 1.65 2.66 1.46 1.75 1.19

Fabrics 3.68 1.26 3.1 1.15 2.79 1.05 2.82 0.99 2.19 1.05

Madeups 4.39 2.65 4.2 2.61 4.07 2.56 4.08 2.65 2.18 1.45

Total 10.97 5.76 10.24 5.54 9.46 5.26 9.56 5.10 6.12 3.69

Category % Change in 2007 % Change in 2008 CAGR (%)

(2002-08)

Total Cotton Total Cotton Total Cotton

1 12 13 14 15 16 17

Yarn 9.47 7.97 -5.51 -4.67 5.1 7.3

Fabrics 12.59 12.89 3.83 3.52 7.4 8.6

Madeups 11.91 13.38 8.72 8.35 12.5 11.3

Total 11.86 12.49 3.70 4.19 8.3 9.3

of which India’s Trade

Yarn 16.67 10.56 -1.36 3.93 8.8 7.6

Fabrics 14.39 7.48 18.71 9.57 9.0 3.1

Madeups 1.20 -2.25 4.52 1.53 12.4 10.6

Total 9.17 3.55 7.13 3.97 10.2 7.7

160

US $145.4 billion in 2002 to US $202.89 billion in 2006, and reached a level of

US $235 billion in 2008.

Trade in cotton textiles increased at a CAGR of 9.3 per cent from US $60

billion in 2002 to US $87.11 billion in 2006, and reached a level of US $102.1

billion in 2008.

It indicates that there was higher growth in cotton textile exports than the

total textile exports during the period 2002-08. Global trade has been shifting

towards finished goods from intermediate products and raw maerial as can be seen

from the fact that made-ups recorded the highest growth at a CAGR 12.5 per cent,

followed by fabrics 7.4%, and yarn 5.1%.

Similarly in cotton textiles, growth in cotton made-ups was the highest with

a CAGR of 11.3% followed by fabrics 8.6%, and yarn 7.3%.

In 2008, fabrics accounted for the highest share (55%) in total textile

exports followed by made-ups 30%, and yarn 15% whereas 56% for cotton fabrics

followed by cotton made-ups 34% and cotton yarn 10% during the same period,

indicating that growth rate of value addition in cotton exports was higher than in

total textile exports.

Global trade in cotton textiles is expected to increase from US $97.99

billion in 2007 to reach a level of US$102.1 billion in 2008, recording a growth of

4.19 per cent which is above the export growth of textiles of all fibres (3.70%)

indicating a higher demand for cotton based textiles products in world markets.

Global exports of yarn of all fibres recorded a negative growth of (-)5.5%

while exports of cotton yarn recorded a negative growth of (-)4.67% in 2008.

In 2008, unlike yarn, exports of fabrics and made-ups (of all fibres)

recorded growth of 3.83% and 8.72%, respectively. Similarly, exports of cotton

fabrics and cotton made-ups recorded growth of 3.52% and 8.35%, respectively.

Higher growth in exports of made-ups as compared to fabrics and yarn

indicates that the global textile trade continues to shift in favour of value added

textile goods.

161

As compared to negative growth rate recorded in exports of cotton yarn in

2008, Indian spinning industry was able to withstand the pressures by recording a

positive growth of 3.93 per cent in 2008.

Exports of cotton made-ups from India increased marginally from US $2.61

billion in 2007 to US$2.65 billion in 2008, recording a growth of 1.53%. As

compared to growth of 8.35% in global export in cotton made-ups, lower growth

recorded by India is a matter of concern. Growth rate of yarn and fabrics for 2008

in India in relation to total and of cotton has been higher than that of global

picture, though there was decline in the growth rates of India, in 2008 in

comparison to 2007 in respect of both categories for total and for cotton.

3.15 Exports of RMG, and Textiles other than RMG

In view of the significantly high share in total textile exports, RMG is taken

up separately for analysis. This is followed by made-ups as both of them are

considered higher value added products. Textiles other than RMG is treated as

another major group. These three are discussed in this section. (Text Table 3.5)

Text Table 3.5: RMG and Textiles excluding RMG in Total Textiles Exports – Per cent Change, Per cent Share, and CAGR (1994-2009)

% Share

Year RMG (Rs.

billion)

% Change

Textiles (excl. RMG) (Rs.

billion)

% Change RMG

Textiles excl. RMG

Total Textiles (Rs.

billion)

% Change

1 2 3 4 5 6 7 8 9 1994-95 141.91 21.8 113.94 30.5 55.47 44.53 255.85 25.5 1995-96 151.52 6.8 145.19 27.4 51.07 48.93 296.71 16.0 1996-97 169.34 11.8 184.72 27.2 47.83 52.17 354.06 19.3 1997-98 185.58 9.6 198.71 7.6 48.29 51.71 384.29 8.5 1998-99 183.68 (-)1.0 195.46 9.5 48.45 51.55 379.14 4.1 1999-2000 206.50 12.4 233.46 19.4 48.03 51.97 429.96 13.4 2000-01 254.80 23.4 273.96 17.3 48.19 51.81 528.76 23.0 2001-02 238.82 (-)6.3 254.95 (-)6.9 48.37 51.63 493.77 (-)6.6 2002-03 277.71 16.3 296.13 16.2 48.40 51.60 573.84 16.2 2003-04 286.88 3.3 332.54 12.3 46.31 53.69 619.42 7.9 2004-05 295.38 3.0 347.99 4.6 45.91 54.09 643.37 3.9 2005-06 3810.93 29.3 408.40 17.4 48.33 51.67 790.33 22.8 2006-07 402.80 5.5 477.51 16.9 45.76 54.24 880.31 11.4 2007-08 390.28 (-)3.1 512.05 7.2 43.25 56.75 902.33 2.5 2008-09 503.90 29.1 482.62 (-)5.7 51.08 48.92 986.52 9.3 CAGR (%) 1994-2000 7.8 15.4 10.9 1999-2005 7.4 8.3 8.4 1994-2005 7.6 11.8 9.7 2004-2009 14.3 8.5 11.3 Source: Compendium of Indian Textile Statistics, Ministry of Textiles, GOI.

162

In 2008-09, out of total textile exports of Rs.986.52 billion, with growth

rate of 9.3%, the share of RMG is Rs.503.90 billion (51.1%), with growth rate of

29.1%. Textiles other than RMG accounted for Rs.482.62 billion (48.9%), with

percentage change as (-)5.7. The share of the RMG exports in total textile exports

in the last 15 years from 1994-95 ranged from 43% to 55%. It has come down in

recent years, and moved up to 51% in 2009-10. Growth rate of RMG has not

shown a consistent pattern. Over 20% change was noticed in 4 out of 15 years, the

latest being 29.1%. Negative growth rate was noticed in three years. RMG

segment is quite substantial, and promising in terms of potential for exports. The

share of textiles other than RMG varied from 45% to 57%. In most of the years, it

was in the range of 50 to 57%. This segment consists of four categories – fibre,

yarn, fabrics, and made-ups. Percentage change of this segment used to be 27 to

30 during 1994-97; but declined later. It even showed negative growth in two

years. It was in the range of 12 to 15% in 6 years. CAGR for RMG in the post-

quota regime (2004-09) was 14.3%, higher than in earlier periods; for textiles other

than RMG, CAGR was 8.5% in the post-quota period, lower compared to the

quota-period level of 11.8%. It used to be high at 15.4% during 1994-2000. For

overall textile exports, CAGR during 2004-09 is higher (11.3%) compared to

earlier periods of 9.7%. This is attributable to high growth rate of RMG. In the

entire textile value chain, RMG exports stands prominent. To improve the share

and growth rate of RMG exports, the constraints faced by the sector need to be

removed; and technological advances need to be paid greater attention, apart from

vertical integration of processes.

The trend of exports of textiles other than RMG and RMG has given rise to

an interesting direction in the post-ATC scenario. Export growth of low value

added textiles like yarn and fabric has experienced steep decline. RMGs, on the

other hand, showed higher growth rate in most of the years (Tables 3.35-B, 3.17

and 3.14-A). The trend itself explains the different parameters of the sector in

terms of the manufacturers’ preference for higher value addition. The indication of

a declining share of textile exports gives rise to a widespread feeling of maturity of

163

Indian manufacturers to climb up the value chain, and refrain from exporting low

value added products. The conversion of low value added products to high value

added products is beneficial to generate higher revenue, through supplies to

domestic as well as export markets. This also implies higher investment on

advanced technologies, and adoption of technology-intensive processes and

machinery, though the entire value chain can be considered labour-intensive in

comparison to other industries.

CAGR of yarn and fabrics in the post-ATC era has come down to 6% and

7.7% from the quota-period level of 11.4% and 9.1%, respectively. Similarly

made-ups exports recorded 5.1% growth rate during 2004-09, lower compared to

10.3% in the quota period (Table 3.35-B). These indicate greater domestic demand

for low value added items, and structural changes taking place in production and

supply. Increased export share of RMG is evidence of the structural changes in the

industry in manufacturing and marketing, including export promotion, along with

technological advances in industrial clusters in a number of locations in the

country.

RMG exports reached a level of Rs.503.90 billion during 2008-09 with

51.08 per cent share in total textile exports as against the exports of Rs.390.28

billion in 2007-08 with 43.25 per cent share in total textile exports, marking a

growth of 29.1 per cent (Table 3.17).

Cotton RMG exports reached a level of Rs.375.99 billion during 2008-09

with 38.11 per cent share in total textile exports as against the exports of Rs.298.09

billion in 2007-08 with 33.04 per cent share in total textile exports, marking a

growth of 26.1 per cent.

Non-cotton RMG exports reached a level of Rs.127.91 billion during 2008-

09 with 12.97 per cent share in total textile exports as against Rs.92.19 billion in

2007-08 with 10.22 per cent share in total textile exports, marking a growth of

38.8 per cent.

CAGR of exports of total RMG, cotton RMG, and non-cotton RMG

increased from 7.6, 8.7 and 4.8 per cent in ATC period to 14.3, 13.7, and 16.0 per

cent in post-ATC period, respectively (3.35-B).

164

The increasing growth rate of cotton and non-cotton RMG exports from

ATC period to post-ATC period was significant. But the percentage share of

cotton RMG exports in total cotton textile exports increased from 52.6 per cent in

the period 1994-95 to 64 per cent in 2008-09 as against the percentage share of

non-cotton exports in total non-cotton textile exports decreasing from 63.2 per cent

in 1994-95 to 37.8 per cent in 2008-09.

We can conclude that growth rate increased from ATC period to post-ATC

period for cotton and non-cotton RMG exports. But the percentage share of cotton

RMG exports in total cotton textile exports increased from 1994-95 to 2008-09

whereas the percentage share of non-cotton RMG exports in total non-cotton

textile exports decreased during the same period. It indicates that there was more

demand for Indian cotton RMG than the non-cotton RMG.

3.16 Made-ups Exports

The exports of made-ups reached a level of Rs.108.22 billion during 2008-

09 with 10.97 per cent share in total textile exports as against Rs.95.74 billion in

2007-08 with 10.61 per cent share in total textile exports, marking a growth of 13

per cent (Table 3.18).

Cotton made-ups exports reached a level of Rs.68.71 billion during 2008-09

with 6.96 per cent share into total textile exports as against Rs.65.32 billion in

2007-08 with 7.24 per cent share in total textile exports marking a growth of 5.2

per cent. The non-cotton made-ups exports reached a level of Rs.39.51 billion

during 2008-09 with 4 per cent share in total textile exports as against Rs.30.42

billion in 2007-08 with 3.37 per cent share into total textile exports, marking a

growth 29.9 per cent.

CAGR of total made-up exports, cotton made-up exports and non-cotton

made-up exports decreased from 10.3, 8.5 and 18.6 per cent in ATC period to 5.1,

1.1, and 14.7 per cent in post-ATC period respectively (Table 3.35-B).

Made-up exports showed higher performance during the period 1999-05

(second half of the ATC period) than all other value added products exports like

yarn, fabrics, and RMG. This indicates that made-up exports segment benefited

165

from global integration earlier than the other textile exports (before the completion

of ATC period).

Cotton and non-cotton made-up exports also show highest growth than the

cotton & non-cotton yarn, fabric and RMG exports segments during the period

1999-05. But the growth rate of non-cotton made-ups was higher than the growth

rate of cotton made-ups.

The percentage share of exports of non-cotton made-up total non-cotton

textiles increased to 11.7 per cent in 2008-09 from 5.9 per cent in 1994-95 whereas

in cotton made-up exports, the share decreaed from 15.7 to 11.7 per cent during

the same period.

We can conclude that both cotton and non-cotton made-ups benefited from

the ATC. But non-cotton made-ups benefited to a greater degree than the cotton

made-ups in terms of growth and share (Table 3.35-B).

In the overall basket of textile exports, cotton textile exports shows better

performance than non-cotton textile exports during the post-quota period. CAGR

of cotton textile exports increased from 7.76% in ATC period (1994-2005) to 10.6

per cent in post-ATC period (2004-09) as against CAGR of non-cotton textile

exports decreasing from 13.62 per cent to 12.32 per cent. Share of cotton textiles

export in the total textiles exports decreased from 72.7 per cent in 1994-95 to 59.5

per cent in 2008-09 whereas the percentage share of non-cotton exports increased

from 27.3 per cent to 40.5 per cent during the same period (Table 3.13-A).

3.17 Fibre Exports

The exports of textile fibre reached a level of Rs.44.17 billion with 4.5 per

cent share in total textile exports during 2008-09 as against the exports of

Rs.103.13 billion in 2007-08 with 11.43 per cent share in total textile exports,

marking a negative growth of (-)57.2 per cent (Table 3.14-A). Fibre exports

growth increased from ATC period with a CAGR 21.8 to 43.1 per cent during

post-ATC period. The percentage share of fibre exports in total textile exports

increased nine times for the period 1994-95 to 2008-09 (Table 3.35-B). The

exports of cotton textile fibre reached a level of Rs.28.76 billion during 2008-09

with 2.9 per cent share in total textile exports as against the exports of Rs.88.65

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billion in 2007-08 with 9.83 per cent share in the total textile exports, marking a

negative growth of (-)67.7 per cent . The growth of cotton textile fibre exports

increased from a CAGR 37.7 per cent in ATC period to a CAGR 61.5 per cent in

post-ATC period. The percentage share of cotton fibre exports in total cotton

textile exports increased more than 12 times during the period 1994-95 to 2008-09.

The exports of non-cotton fibre reached a level of Rs.15.51 billion during 2008-09

with 1.6 per cent share in total textile exports as against the exports of Rs.14.48

billion in 2007-08 with 1.6 per cent share in total textile exports, marking a growth

of 7.1 per cent. The growth of non-cotton fibre textile exports decreased from a

CAGR 25.7 per cent in ATC period to CAGR 25.1 per cent in post-ATC period.

The percentage share of non-cotton fibre exports in total non-cotton exports

increased more than 5 times for the period 1994-95 to 2008-09.

We can conclude that cotton textile fibre exports showed higher growth

than non-cotton textile fibre exports during the ATC and post-ATC periods. The

cotton textile exports growth increased from ATC period to post-ATC period as

against non-cotton textile fibre exports decreasing from ATC period to post-ATC

period. The percentage share of cotton and non-cotton fibre exports in total cotton

textiles exports and non-cotton textiles exports increased from 1.1 and 2.5 per cent

in 2004-05 to 4.9 and 4.6 per cent in 2008-09, respectively. The share of cotton

fibre exports in total cotton exports was higher than the share of non-cotton fibre

exports in the total non-cotton exports during 2008-09. However, during the 2004-

05, the share of non-cotton textile fibre exports was higher than the share of cotton

fibre exports.

3.18 Yarn Exports

The exports of yarn reached a level of Rs.114.38 billion during 2008-09

with 11.6 per cent share in total textile exports as against Rs.126.77 billion in

2007-08 with 14.05 per cent share in total textile exports, marking a negative

growth of (-)9.8 per cent (Table 3.15).

Exports of cotton yarn reached a level of Rs.69.12 billion during 2008-09

with 7% share in total textiles exports as against Rs.72.82 billion in 2007-08 with

8.51 per cent share in total textile exports, marking a negative growth of (-)10 per

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cent. The exports of non-cotton yarn reached a level of Rs.45.26 billion during

2008-09 with 4.6 per cent share in total textile exports as against Rs.49.95 billion

in 2007-08 with 5.98 per cent share in total textile exports, marking a negative

growth of (-)9.4 per cent. CAGR of exports of total yarn, cotton and non-cotton

yarn declined from 11.4, 8.0, and 22.3 per cent in ATC period to 6.0, 5.2 and 7.3

per cent in post-ATC period, respectively (Table 3.35-B).

Growth declined in non-cotton yarn exports from ATC period to post-ATC

period, but the decline has more steap in case of non-cotton yarn compared to

cotton yarn. The percentage share of cotton yarn exports in total cotton textile

exports declined from 14 in 1994-95 to 11.8 in 2008-09 whereas non-cotton yarn

exports increased from 5 to 13.4 during the same period in relation to the

corresponding total exports.

We can conclude that the growth rate has declined in cotton & non-cotton

yarn exports from ATC period to post-ATC period. But the decline in growth rate

in non-cotton yarn exports was more steep compared to cotton yarn exports during

the same period. It is also a positive signal to the value addition of the Indian

Textile Industry

3.19 Fabrics exports

The exports of fabric reached a level of Rs.154.96 billion during 2008-09

with 15.71 per cent share in total textile exports as against Rs.126.38 billion in

2007-08 with 14.01 per cent share in total textile exports marking a growth of 22.6

per cent (Table 3.16).

The exports of cotton fabric reached a level of Rs.44.46 billion during

2008-09 with 4.51 per cent share in total textile exports as against the exports of

Rs.41.67 billion in 2007-08 with 4.62 per cent share in total textile exports

marking a growth of 6.7 per cent.

The exports of non-cotton fabric reached a level of Rs.110.50 billion during

2008-09 with 11.2 per cent share in total textile exports as against Rs.84.71 billion

in 2007-08 with 9.39 per cent share in total textile exports, marking a growth of

30.4 per cent.

168

CAGR of exports of total fabric, cotton fabric and non-cotton fabric

declined from 9.1, 2.5 and 16.3 per cent in ATC period to 7.7, 2.0 and 10.4 per

cent in post-ATC period, respectively (Table 3.35-B).

Growth rate decline in non-cotton fabric exports from ATC period to post-

ATC period was higher than the declining growth rate in cotton fabric exports

during the same period.

The percentage share of cotton fabrics exports in total cotton textile exports

decreased from 17.3 per cent in 1994-95 to 7.6 per cent in 2008-09. But the

percentage share of non-cotton fabrics export in total non-cotton textile exports

increased from 23.4 per cent in 1994-95 to 32.5 per cent in 2008-09.

We can conclude that the growth rate was declined in cotton & non cotton

fabrics exports from ATC period to post-ATC period. But the growth rate decline

in non-cotton fabric exports was higher than the declining growth rate in cotton

fabric exports during the same period.

3.20 Comparative Analysis of Indian Cotton and Non-Cotton T&C Exports

This section analyses the impact of phasing out of quotas (completion of

ATC period - Agreement on Textiles and Clothing) on Indian textile exports

during 2005-09 segment-wise with break up for cotton and non-cotton categories.

Table 3.35(A) presents segment-wise exports, with percentage change over the

previous year in respect of cotton and non-cotton categories for four periods: 1994-

95, 1999-2000, 2004-05, and 2008-09. Value of exports is given in Rs. billion.

Table 3.35(B) presents segment-wise for cotton and non-cotton categories of

textile exports CAGR in four periods, and share in four years. Total textile exports

(cotton plus non-cotton) increased from Rs. 256 billion in 1994-95 to Rs. 987

billion in 2008-09 (a period of 15 years). Year 1994-95 represents the

commencement period of ATC; 2004-05, end of ATC period, and 1999-2000 falls

mid-way of the ten-year quota period of ATC. 2008-09 is the post-quota period to

analyse the impact of the elimination of the quota system. CAGR for total textile

exports (cotton & non-cotton…C+NC) for 2004-09 is 11.3%. Compared to this,

for the earlier ten-year period (1994-2005), growth is 9.7%. In the first half of the

ten-year period, growth is 10.9%, and in the second half 8.4%. Elimination of the

169

quota system from January 2005 has thus made an impact on improving the CAGR

during 2004-09 for Indian total textile exports. Analysis between cotton and non-

cotton exports reveals that cotton exports has recorded CAGR of 10.6% as

distinguished from non-cotton exports which has achieved higher growth of 12.3%

during 2004-09. For C exports in all the years of quota period, growth rate was

about the same (7.8%). For NC exports, growth rate was higher (18.2%) in the first

phase, and lower (9.2%) in the second phase, resulting in the growth rate for the

ten-year period as 13.6%.

Share of RMG in total textile exports was 51% in the post-quota period of

2008-09, 46% in the quota period (2004-05), 56% in 1994-95, and 48% in 1999-

2000. Made-ups accounted for 11% in 2008-09, compared to 13.8% in 2004-05.

The picture in 1994-95 was 13% and for 1999-00, 9.2%. These two together

represent higher value added products compared to other segments. This indicates

that the trade has been shifting towards higher value added products from the stage

of largely exporting raw material and intermediate products. In 2008-09, share of

fibre was 4.5%, yarn 11.6%, and fabrics 15.7%. In the post-quota period, share for

these segments has come down. Another interesting finding is cotton RMG’s share

is 64% in 2008-09, compared to 57.3% in 2004-05, and around 53% in the earlier

two years. As a contrast, non-cotton RMG’s share has declined in 2008-09 to

32.0% from 63%, 40%, and 28% in the earlier three years. In higher value added

products, cotton products are gaining in importance. CAGR of total RMG exports

is 14.3% in 2004-09. In the earlier two periods of quota regime growth was 7.8%

and 7.4%. This is corroborated by higher growth rate of cotton and non-cotton

RMG (13.7% and 16% in 2004-09, respectively), which are higher compared to

growth rates recorded in earlier periods for both the categories. In respect of yarn

and fabrics, CAGR in 2004-09, is less compared to the earlier two periods. Cotton

fibre exports has recorded higher CAGR (61.5%) compared to non-cotton fibre

exports (25.1%) resulting in growth rate for total fibre exports of 43.1% in 2004-

09. Growth rate in 2004-09 is higher in all categories of fibre compared to earlier

periods.

170

High Fibre export growth in post-quota period indicates the increasing

demand for fibre in response to increase of world textile trade for the last few

years. This also reveals that there is potential for export of fibre from the available

surplus in the country after meeting domestic consumption for all categories of

consumers. Fluctuations in fibre exports in different years are because of the

changing policies of the Government, which has even banned export of fibre in

certain periods.

IV. Indian Textiles and Clothing Imports Scenario(1998-2009)

3.21 Overview of T&C Imports

Indian Textile and Clothing (T&C) imports stands at US $3.44 billion in

2009-10, US $3.58 billion in 2008-09, US $3.33 billion in 2007-08, US $2.27

billion in 2004-05, US $1.17 in 2000-01, and US $0.84 billion in 1998-99 (Table

3.9A). Decline in 2009-10 is of (-)3.9%. In earlier years, maximum growth rates

reached are 31.8% in 2001-02, 23.6% in 2003-04, 20.6% in 2005-06, and 17.2% in

2007-08. In relation to overall imports of the country, textile imports accounted for

1.2% in 2009-10. The percentage was 3.0 in 2001-02, declined thereafter to 2.0 in

2004-05, and came down further year after year. It remained at 1.3% or 1.2% in

the recent three years. In the ATC period (1994-2005), in US $ terms imports

increased by CAGR of 9.6%, and in the post-ATC period (2004-09), CAGR is

12.1%. CAGR during 1999-2005 was 14.8%. Values in Rs. terms indicate that the

percentage change of cotton and non- cotton imports (Tables 3.13 B-1 and B-2)

has been varying year after year without a set pattern. Cotton textile imports

increased by 32.7% in 2008-09, compared to 18.4% for non-cotton textile imports,

resulting in overall textile imports percentage change as 21.1 for 2008-09.

Percentage change for overall textile imports was low in a number of years. It was

above 17 in five years in the last 11 years. Non-cotton textiles imports in total

textiles imports accounted for 75% to 83% in the recent years, and cotton textiles

imports was in the range of 17 to 20%. Non-cotton imports is, thus, dominant. In

2008-09, 44% of textiles imports was of yarn and fabrics, and 46% was of raw

material and semi-raw material. Trend lines have been drawn based on trend

equations for textiles imports in relation to overall imports of the country during

171

1998-2009, and also for five segments for total textiles imports, and for non-cotton

textiles imports (Figures 3.2,3.3, and 3.9 to 3.12). Raw material imports mainly

consist of extra long staple (ELS) cotton, where domestic production is less than

consumption. Raw cotton imports has been declining in recent years though it

increased in certain years. As a contrast, raw cotton exports has been moving in

the upward direction in a number of years (Tables 3.12-A and B).

The trend equations for textiles imports reveal as follows:

Text Table 3.6: Annual Average Increase in Textiles Imports during 1998-2009

As noticed from the above data, weightage for textiles imports is, thus, in

favour of low value added raw materials and semi-raw materials (yarn and

fabrics). Growth rate is higher for low value added products compared to high

value added products of RMG and Made-ups. Among low value added products,

growth rate for fabric is higher than for yarn. Similarly, among high value added

products, growth rate is higher for made-ups compared to RMG . We can conclude

that for imports, low value added products occupy greater weightage.

Analysis of textiles imports of 2008-09 reveals as follows: Cotton textiles

20.2%, non-cotton textiles (59.4%), and others (20.4%). Cotton and non-cotton

textiles imports include the following: fibre 27.9%, yarn 16.5%, fabric 24.4%,

RMG 3.9%, and Made-ups 6.9%.

Hypothesis Tables 3.4 and 3.5 (a), (b) & (c), presented later in this chapter,

deal with textile imports. Hypothesis V, “Percentage share of imports of non-

cotton textiles and clothing in relation to combined T&C imports has been steadily

increasing”, has been proved right. Hypothesis IV, “Percentage share of imports of

low value added products - fibre, yarn, and fabrics - to total T&C imports has been

steadily increasing”, has been disproved. The details are given later in the

Category of Textiles Imports

Overall Growth

(Value in Rs. crore)

Yarn 213

Fabric 414

RMG 49.3

Made-ups 62.3

Total Textiles 1196

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hypotheses testing section of this chapter. In the post-ATC period, the share of

cotton textiles imports in total textile imports increased from 17.1% in 2005-06 to

18.4% in 2007-08, and 20.2% in 2008-09. In 2004-09, CAGR of non-cotton textile

imports was 12.43%, compared to 11.9% for cotton textile imports, and 12.33%

for the combined imports. During the period 2005-06 to 2008-09, percentage of

high value added products in total textile imports shows increasing trend – cotton

RMG and made-ups increased from 0.75 and 0.29 to 1.70 and 0.58, respectively;

non-cotton RMG and made-ups increased from 1.33 and 3.62 to 2.23 and 6.29,

respectively. Low value added products imports percentage in total textile imports

showed decreasing trend, in respect of both cotton and non-cotton products.

Textile imports data mentioned above does not include import of machinery

and accessories for the textile industry in the context of technology upgradation

and modernisation availing of the facility available under Technology Upgradation

Fund Scheme (TUFS) and Export Promotion of Capital Goods (EPCG) Scheme, in

particular. Import of machinery for T&C units includes shuttleless powerlooms,

and machinery for garment units, not to speak of modernisation needs of spinning

and composite mills. The survey of garment units revealed that garment

manufacturing units engaged in different processes have the propensity to replace

old machines with new imported machines from China, Japan and South Korea,

despite very low off take of TUF loans obtained by garment manufacturers. Those

who are setting up new units or making expansion are installing imported

machines from the beginning for higher productivity and better quality products.

However, there is a greater tendency to buy Chinese origin machines due to its low

cost. Embroidery machines, which require comparatively higher capital

investments, are also imported from Japan. In Tirupur (Tamil Nadu) garments

cluster, machines used at various stages of production are largely imported to

match international standards of production. Therefore, technology used is the

latest. Different types of machines are imported from Europe, USA and Far East

Asia like Japan/Taiwan/ Korea. Of late, Tirupur exporters have started using

machines of Chinese origin due to cost considerations. In the context of

infrastructural development of textile / clothing units through Integrated Textile

173

Parks and Apparel Parks, the demand for imported machinery and foreign direct

investment is bound to increase for new units being set up in these locations.

3.22 Fibre Imports

The imports of fibre reached a level of Rs.4,515 crore during 2008-09 with

27.85 per cent share in total textile imports as against Rs.3,493 crore in 2007-08

with 26.09 per cent share, marking a growth of 29.3 per cent (Tables 3.19-A & B).

The imports of cotton fibre reached a level of Rs.1,691 crore during 2008-09 with

10.43 per cent share in total textile imports as against Rs.912 crore in 2007-08 with

6.81 per cent share, marking a growth of 85.4 per cent.

The imports of non-cotton fibre reached a level of Rs.2,824 crore during

2008-09 with 17.42 per cent share in total textile imports as against Rs.2,581 crore

in 2007-08 with 19.27 per cent share, marking a growth of 9.4 per cent.

3.23 Yarn Imports

The imports of yarn reached a level of Rs.2,672 crore during 2008-09 with

16.48 per cent share in total textile imports as against Rs.2,270 crore in 2007-08

with 16.95 per cent share, marking a growth of 17.7 per cent (Table 3.20).

The imports of cotton yarn reached a level of Rs.74 crore during 2008-09

with 0.46 per cent share in total textile imports as against Rs.91 crore in 2007-08

with 0.68 per cent share, marking a negative growth of (-)18.7 per cent.

The imports of non-cotton yarn reached a level of Rs.2,598 crore during

2008-09 with 16.03 per cent share in total textile imports as against Rs.2,179 crore

in 2007-08 with 16.27 per cent share, marking a growth of 19.2 per cent.

3.24 Fabric Imports

The imports of fabric reached a level of Rs.3,956 crore during 2008-09 with

24.40 per cent share in total textile imports as against Rs.3,826 crore in 2007-08

with 28.57 per cent share, marking a growth of 3.4 per cent (Table 3.21).

The imports of cotton fabric reached a level of Rs.1,136 crore during 2008-

09 with 7 per cent share in total textile imports as against Rs.1,193 crore in 2007-

08 with 8.91 per cent share, marking a negative growth of (-)4.8 per cent.

174

The imports of non-cotton fabric reached a level of Rs.2,820 crore during

2008-09 with 17.4 per cent share in total textile imports as against Rs.2,633 crore

in 2007-08 with 19.66 per cent share, marking a growth of 7.1 per cent.

3.25 RMG Imports

The imports of RMG reached a level of Rs.638 crore during 2008-09 with

3.93 per cent share in total textile imports as against Rs.454 crore in 2007-08 with

3.39 per cent share, marking a growth of 40.5 per cent (Table 3.22).

The imports of cotton RMG reached a level of Rs.276 crore during 2008-09

with 1.70 per cent share in total textile imports as against Rs.199 crore in 2007-08

with 1.49 per cent share, marking a growth of 38.7 per cent.

The imports of non-cotton RMG reached a level of Rs.362 crore during

2008-09 with 2.23 per cent share in total textile imports as against Rs.255 crore in

2007-08 with 1.90 per cent share, marking a growth of 42 per cent.

3.26 Made-ups Imports

The imports of made-ups reached a level of Rs.1,114 crore during 2008-09

with 6.87 per cent share in total textile imports as against Rs.493 crore in 2007-08

with 3.68 per cent share, marking a growth of 126 per cent (Table 3.23).

The imports of cotton made-ups reached a level of Rs.94 crore during 2008-

09 with 0.58 per cent share in total textile imports as against Rs.70 crore in 2007-

08 with 0.52 per cent share, marking a growth of 34.3 per cent.

The imports of non-cotton made-ups reached a level of Rs.1,020 crore

during 2008-09 with 6.29 per cent share in total textile imports as against Rs.423

crore in 2007-08 with 3.16 per cent share, marking a growth of 141.1 per cent.

3.27 Direction of Textile Imports

• In case of all textile imports in 2008-09, China continues to be the leading source country with a share of 39.4 per cent followed by USA and Australia with 6 and 4 per cent share, respectively (Table 3.30). The share of China has increased from 12.3% in 1998-99, to 24.4% in 2003-04, and 42.1% in 2007-08, and declined to 39.4% in 2008-09. The share of developed countries has come down, and that of developing countries has increased, over years. In case of USA and Australia, the shares were 16.1% and 9.0% in 2000-01, and 6.1% and 4.1% in 2008-09, respectively. The shares of other Asian developing countries has remained at about the same level.

175

• In case of cotton Raw (including waste cotton) imports, USA continues to be the leading source country with a share of 24 per cent followed by Egypt and Burkina Faso with 15.92 and 9.73 per cent, respectively (Table 3.31-B). Table 3.31-A in US $ terms indicates that after USA and Egypt, Tanzania and Uzbekistan stand next with 12.24% and 10.44%, respectively in 2008-09.

• In case of cotton yarn imports, Pakistan was a leading market with a share of 59 per cent followed by China PRP and Vietnam Soc Rep with 14.09 and 3.28 per cent, respectively (Table 3.33-C).

• In case of cotton Fabric imports, China PRP was a leading market with a share of 47 per cent followed by Pakistan and Hong Kong with 10.5 and 7.4 per cent, respectively (Table 3.33-D).

• In case of RMG imports, China PRP was a leading market with a share of 29 per cent followed by Italy and Nepal with 11.5 and 5.3 per cent, respectively (Table 3.34-B). In US $ terms, UK stands third with 9.4 per cent share (Table 3.34-A).

• In case of made-up articles imports, Bangladesh was a leading market with a share of 23 per cent followed by China and USA with 20 per cent each (Table 3.33-B).

176

Fig. 3.2 : ## Textile Imports and Overall Imports

Source: Table 3.9(A)

The trend equations for Textile Imports and overall Imports in US $ million

for the period 1998-99 to 2008-09 are given below:

Trend Equation R2 Sig Remarks

Textile Imports = 437 + 277 t 98.5 0.000 Good Fit

Overall Imports = - 29461 + 25143 t 84.8 0.000 Good Fit

Fig. 3.2 : ## Trend lines fitted based on the derived Trend Values of Textile

Imports and overall Imports

1. The annual average increase in Textile Imports is US $ 277 million.

2. The annual average increase in Overall imports is US $ 25,143 million.

177

Fig. 3.9: ## IMPORTS: FIBRE, YARN, FABRICS, AND TOTAL Textiles

Source: Tables 3.9(A) ,3.19(A), 3.20, and 3.21

The Trend equations for imports of Fibre, Yarn, Fabrics, and Total Textiles

in Rs. crore for the period 1998-99 to 2008-09 are given below:

Trend Equation R2

Sig. Remarks

FIBRE = 2147 + 167 t 53.3 0.011 Not Fit

YARN = 291 + 213 t 98.2 0.000 Good Fit

FABRICS = - 115 + 413 t 92.2 0.000 Good Fit

TOTAL Textile = 2203 + 1196 t 98.7 0.000 Good Fit

Fig. 3.9: ## Trend lines fitted based on the derived Trend Values of Imports of

Fibre, Yarn, Fabrics, and Total Textiles

1. The annual average increase in YARN in IMPORTS is Rs. 213 crore. 2. The annual average increase in FABRICS in IMPORTS is Rs. 414 crore. 3. The annual average increase in TOTAL Textiles in IMPORTS is Rs. 1,196 crore.

4. The Component FIBRE is not significant; hence, we eliminate the result.

178

Fig.3.10: ## IMPORTS: RMG, MADE-UPs, AND TOTAL Textiles

Source: Tables 3.9(A) , 3.22, and 3.23

The Trend equations for Imports of RMG, Made-ups, and Total Textiles in

Rs. crore for the period 1998-99 to 2008-09 are given below:

Trend Equation R2

Sig. Remarks

RMG = - 68.5 + 49.3 t 80.6 0.000 Good Fit

MADE-UPs = 54 + 62.3 t 63.9 0.003 Good Fit

TOTAL Textile = 2203 + 1196 t 98.7 0.000 Good Fit

Fig.3.10: ## Trend lines fitted based on the derived Trend values of Imports of

RMG, Made-ups, and Total Textiles

1. The annual average increase in RMG in IMPORTS is Rs. 49.3 crore. 2. The annual average increase in MADE-UPS in IMPORTS is Rs. 62.3 crore. 3. The annual average increase in TOTAL Textiles in IMPORTS is Rs. 1,196 crore.

179

Fig.3.11:## NON-COTTON IMPORTS: FIBRE, YARN, FABRICS, AND

TOTAL Non-Cotton Textiles

Source: Tables 3.13(B-1) ,3.19(A), 3.20, and 3.21

The Trend equations for Non-cotton Imports of Fibre, Yarn, Fabrics, and

Total non-cotton Textiles in Rs. crore for the period 1998-99 to 2008-09 are given

below:

Trend Equation R2 Sig. Remarks

FIBRE = 1029 + 159 t 96.4 0.000 Good Fit

YARN = 285 + 205 t 98.1 0.000 Good Fit

FABRICS = 44 + 276 t 93.4 0.000 Good Fit

TOTAL = 1017 + 763 t 95.2 0.000 Good Fit

Fig.3.11: ## Trend lines fitted based on the derived Trend Values of Non-cotton

Imports of Fibre, Yarn, Fabrics, and Total non-cotton Textiles

1. The annual average increase in FIBRE in NON-COTTON IMPORTS is Rs. 159 crore.

2. The annual average increase in YARN in NON-COTTON IMPORTS is Rs. 205 crore

3. The annual average increase in FABRICS in NON-COTTON IMPORTS is Rs. 276 crore.

4. The annual average increase in TOTAL Textiles in NON-COTTON IMPORTS is Rs. 763 crore.

180

Fig.3.12:## NON-COTTON IMPORTS: RMG, MADE-UPs AND TOTAL

Non-Cotton Textiles

Source: Tables 3.13(B-1) , 3.22, and 3.23

The Trend equations for Non-Cotton Imports of RMG, Made-ups, and Total

Non-cotton Textiles in Rs. crore for the period 1998-99 to 2008-09 are given

below:

Trend Equation R2 Sig. Remarks

RMG = - 22.6 + 27.2 t 80.3 0.000 Good Fit

MADE-UPs = 29 + 58.5 t 62.3 0.004 Good Fit

TOTAL = 1017 + 763 t 95.2 0.000 Good Fit

Fig.3.12: ## Trend lines fitted based on the derived trend values of Non-cotton

Imports of RMG, Made-ups, and Total Non-cotton Textiles

1. The annual average increase in RMG in NON-COTTON IMPORTS is Rs. 27.2 crore.

2. The annual average increase in MADE-UPs in NON-COTTON IMPORTS is Rs. 58.5 crore.

3. The annual average increase in TOTAL Textiles in NON-COTTON IMPORTS is Rs.763 crore.

181

3.28 Comparison of Time Series Data Between Two Periods of ATC and

Post-ATC

Time series data on exports and imports of textiles of cotton and non-cotton

categories for different product groups - for each category, fibre, yarn, fabric,

RMG, made-ups, and the combined total of segments - have been processed for

two periods. The periods considered are ATC (1998-2005) and post-ATC (2005-

2009).

For this purpose, we have adopted Dummy Variable Regression Method, and

the results of analysis are presented in Annexure I. From the results of four

categories, two for cotton and non-cotton exports, and two for cotton and non-

cotton imports, it is noticed that only in case of two categories, significant

difference has been noticed in the overall growth rates between two sub-periods of

ATC and post-ATC. These are:

1. Exports of combined cotton textiles 2. Exports of combined non-cotton textiles

In case of exports of combined cotton textiles, the common growth rate

between two sub-periods is Rs.448 crore, and the additional growth rate in post-

ATC period is Rs.306.7 crore. Similarly, in case of exports of combined non-

cotton textiles, the common growth rate between two sub-periods is Rs.4371.8

crore, and the additional growth rate in post-ATC is Rs.1322.3 crore.

In all other cases, it may be concluded that there is no significant difference in

the overall growth rates between ATC and post-ATC periods.

3.29 Testing of Hypotheses

Analysis attempted in this Chapter leads to the following conclusions on the

five hypotheses mentioned in Chapter 2. For each hypothesis, result is indicated

here along with reference to the tables presenting data in detail. For purposes of

convenience, relevant data for each hypothesis have been consolidated, and

presented in hypotheses tables in the subsequent pages.

Hypothesis 1: Removal of quantitative restrictions on exports of textiles

and clothing to developed countries from 2005 has made a positive impact on the

182

exports of the sector. This is due to increase in both cotton and non-cotton

products.

Result: The hypothesis has been proved right with increase in CAGR

during 2004-09 of 11.28% for total textiles and clothing exports, 10.6% for cotton

and 12.32% for non-cotton categories. All the three items have shown better

performance with higher growth rates compared to earlier periods - Table 3.13 (A-

2). The same pattern holds good for cotton and non-cotton categories, when we

analyse percentage change in individual years - Table 3.13 (A-1). For value in US

$ billion, CAGR for total textiles and clothing exports for 2004-09 works out to

10.53%, higher compared to earlier periods. CAGR for overall exports for this

period is 22.04%, much higher compared to earlier periods. The post-quota regime

has, thus, been beneficial to the export sector.

Hypothesis 2: Percentage share of exports of high value added products,

namely, readymade garments (RMGs) and made-ups to total textiles exports has

been steadily increasing, and that of low value added products decreasing.

Result: The hypothesis has been proved right, as the share of two value

added product categories in total textiles and clothing exports increased to 62% in

2008-09 from 57% in 1999-00, though the figure was less in certain years.

Increase is particularly marked in respect of cotton RMGs and made-ups. In 2008-

09 in respect of cotton RMG, the share was 64.0% and for made-ups 11.7%, thus

totalling nearly 76% of total cotton textiles and clothing exports (Table 3.35-B).

Hypothesis 3: Regardless of the growth rate of exports of combined

textiles and clothing sector (cotton, non-cotton, and others), cotton textiles and

clothing exports has been consistently growing at a faster pace.

Result: The hypothesis has been disproved. As observed from the data

given in Table 3.13(A-1) for individual years, exports of cotton textiles and

clothing has been broadly following the trend of total textiles and clothing exports,

with decline in per cent change in certain years.

Hypothesis 4: Percentage share of imports of low value added products,

namely, fibre, yarn, and fabrics to total textiles and clothing imports has been

steadily increasing.

183

Result: The hypothesis has been disproved (Tables 3.19, 3.20 and 3.21).

Combined share of the three categories of low value added products in relation to

total textiles imports, including others has, on the contrary, come down from 81%

in 1999-2000 to 78% in 2004-05, and 69% in 2008-09. In fact, the share of imports

of high value added products has been on the increase over years, rising from 5.8%

in 1999-2000 to 7.4% in 2003-04, and 10.8% in 2008-09. The figure declined in

certain years.

Hypothesis 5: Percentage share of imports of non-cotton textiles and

clothing in relation to combined textiles and clothing imports has been steadily

increasing.

Result: The hypothesis has been proved right (Tables 3.13 B-1 and B-2).

The share of imports of non-cotton textiles in combined textiles and clothing,

including others has been moving on the same lines as the total textiles and

clothing imports. It is around 77% to 83% in most of the recent years. Per cent

change is over 20 in a number of years, though it was low in a few years.

184

Database for Testing Hypotheses

Hypothesis I

Removal of quantitative restrictions on exports of textiles and clothing to developed countries from 2005 has had a positive impact on the exports of the sector. This is due to increase in both cotton and non-cotton products – Source: Tables 3.13 (A-1 & A-2) --------- The hypothesis has been proved right.

Hypothesis Table 3.1(a): Exports - All Textiles, with break-up for Cotton and Non-cotton

(1993-2009) – Per cent share and change

(value in Rs. billion)

% Share of total

% Change

Year Cotton Non-cotton

Total Textiles

Cotton Non-cotton

Cotton Non- cotton

Total Textiles

% share of textiles exports to overall exports

1 2 3 4 5 6 7 8 9 10

1993-94 152.64 51.17 203.81 74.9 25.1 Na na Na 29.2

1994-95 185.87 69.98 255.85 72.7 27.3 21.8 36.8 25.5 30.9

1995-96 217.75 78.96 296.71 73.4 26.6 17.2 12.8 16.0 27.9

1996-97 271.27 82.79 354.06 76.6 23.4 24.6 4.9 19.3 29.8

1997-98 283.56 100.73 384.29 73.8 26.2 4.5 21.7 8.5 29.5

1998-99 216.03 163.11 379.14 57.0 43.0 -23.8 61.9 -0.01 27.1

1999-00 268.58 161.38 429.96 62.5 37.5 24.3 -1.1 13.4 26.9

2000-01 329.94 198.82 528.76 62.4 37.6 39.3 2.9 23.0 26.0

2001-02 312.37 181.40 493.77 63.3 36.7 -5.3 -8.8 -6.6 23.6

2002-03 370.53 203.31 573.84 64.6 35.4 18.6 12.1 16.2 22.5

2003-04 387.60 231.82 619.42 62.6 37.4 4.6 14.0 7.9 21.1

2004-05 392.38 251.00 643.38 61.0 39.0 1.2 8.3 3.9 17.1

2005-06 495.56 294.78 790.33 62.7 37.3 26.3 17.4 22.8 17.3

2006-07 560.66 319.65 880.31 63.7 36.3 13.1 8.4 11.4 15.4

2007-08 570.55 331.78 902.33 63.2 36.8 1.8 3.8 2.5 13.8

2008-09 587.04 399.48 986.52 59.5 40.5 2.9 20.4 9.3 11.7

Hypothesis Table 3.1(b): CAGR of Textiles Exports with break-up for Cotton and Non-

cotton (1994-2009)

% based on value in Rs. billion % based on value in US $

billion

Textiles Exports

Period

Cotton Non-Cotton

Total Textiles

Overall Exports

Textile Exports

Overall Exports

1 2 3 4 5 6 7

1994-2000 7.64 18.19 10.94 14.05 6.87 6.94

1999-2005 7.88 9.24 8.39 18.66 6.00 17.80

1994-2005 7.76 13.62 9.66 16.33 6.41 12.24

2004-2009 10.60 12.32 11.28 22.34 10.53 22.04

185

Hypothesis II

Percentage share of exports of high value added products, namely, readymade garments (RMGs) and made-ups to total textiles exports has been steadily increasing. --------- The hypothesis has been proved right.

Hypothesis Table 3.2(a): Per cent Share of Exports of High Value Added Products – Cotton

and Non-cotton to the Total Textiles of the Respective Categories (1994-2009) – Source:

Table 3.35B (value in Rs. billion)

Cotton Non-Cotton Total (C+NC) Year

RMG Made-ups Total RMG Made-ups Total RMG Made-ups Total 1 2 3 4 5 6 7 8 9 10

1994-95 52.6 15.7 68.3 63.2 5.9 69.1 55.0 13.0 68.0 1999-00 52.9 11.8 64.7 50.6 5.9 56.5 48.0 9.2 57.2 2004-05 57.3 16.8 74.1 28.1 9.1 37.2 45.9 13.8 59.7 2008-09 64.0 11.7 75.7 37.8 11.7 49.5 51.0 11.0 62.0

Hypothesis Table 3.2(b): Per cent Share of Exports of Low Value Added Products to Total

Textiles Exports (2004-09) –Source: Tables 3.14B, 3.15 & 3.16

(value in Rs. billion)

Year Fibre Yarn Fabrics Total 2004-05 1.64 14.08 17.94 33.66 2005-06 4.43 12.69 14.01 31.13 2006-07 8.27 13.57 13.45 35.29 2007-08 11.43 14.05 14.01 39.49 2008-09 4.50 11.60 15.71 31.81

Hypothesis Table 3.2(c): Per cent Share of Exports of High Value Added Products to Total

Textiles Exports (1999-2009) --- Source: Tables 3.17 & 3.18

(value in Rs. billion)

Year RMG Made-ups Total 1999-00 48.03 9.15 57.18 2000-01 48.19 9.94 58.13 2001-02 48.37 10.61 58.98 2002-03 48.40 10.71 59.11 2003-04 46.31 12.06 58.37 2004-05 45.91 13.79 59.70 2005-06 48.33 13.34 61.67 2006-07 45.76 11.83 57.59 2007-08 43.25 10.61 53.86 2008-09 51.08 10.97 62.05

Hypothesis III

Regardless of the growth rate of exports of combined textiles and clothing sector (cotton, non-cotton, and others), cotton textiles and clothing exports has been consistently growing at a faster pace. – Source: Tables 3.13(A-1) & A-2 ---------The hypothesis has been disproved.

186

Hypothesis Table 3.3(a): CAGR of Total Textiles Exports with

Break-up for Cotton and Non-cotton (%) - (1994-2009)

(value in Rs. billion)

Year Cotton Non- Cotton Total 1994-00 7.6 18.2 10.9 1999-05 7.9 9.2 8.4 1994-05 7.8 13.6 9.7 2004-09 10.60 12.32 11.28

Hypothesis Table 3.3(b): Per cent Change of Total Textiles Exports

with Break-up for Cotton and Non-cotton (1999-2009)

(value in Rs. billion)

Year Cotton Non- Cotton Total 1999-00 24.3 -1.1 13.4 2000-01 39.3 2.9 23.0 2001-02 -5.3 -8.8 -6.6 2002-03 18.6 12.1 16.2 2003-04 4.6 14.0 7.9 2004-05 1.2 8.3 3.9 2005-06 26.3 17.4 22.8 2006-07 13.1 8.4 11.4 2007-08 1.8 3.8 2.5 2008-09 2.9 20.4 9.3

Hypothesis IV

Percentage share of imports of low value added products, namely, fibre, yarn, and fabrics to total textiles imports has been steadily increasing. -----------

The hypothesis has been disproved.

Hypothesis Table 3.4: Per cent Share of Imports of Textiles – Low Value Added and High

Value Added Products to Total Textile Imports, including others (1999-2009)

Source: Tables 3.19, 3.20, & 3.21

(value in Rs. billion)

Year Fibre Yarn Fabrics Total (2 to 4)

RMG Made-ups Total (6 & 7)

1 2 3 4 5 6 7 8 1999-00 52.05 15.22 13.60 80.87 1.42 4.40 5.82 2000-01 47.88 15.95 14.27 78.10 1.85 6.60 8.45 2001-02 51.17 15.98 14.14 81.29 2.35 3.80 6.15 2002-03 41.58 18.87 22.16 82.61 1.46 3.45 4.91 2003-04 38.33 15.16 26.06 79.55 1.90 5.46 7.36 2004-05 30.99 18.39 28.59 77.97 1.47 3.75 5.22 2005-06 24.70 16.69 32.82 74.21 2.08 3.92 6.00 2006-07 24.19 17.56 30.58 72.33 2.60 3.70 6.30 2007-08 26.09 16.95 28.57 71.61 3.39 3.68 7.07 2008-09 27.85 16.48 24.40 68.73 3.93 6.87 10.80

187

Hypothesis V

Percentage share of non-cotton textiles and clothing imports in relation to combined textiles and clothing imports has been steadily increasing. – Source: Tables 3.13(B-1 & B-2) --------- The hypothesis has been proved right.

Hypothesis Table 3.5(a): Per cent Share of Total Textiles Imports with Cotton and Non-

cotton Break-up (1998-2009)

(value in Rs. billion)

Period Non-cotton Cotton

1998-99 81.3 18.7

1999-00 71.1 28.9

2000-01 73.9 26.1

2001-02 67.7 32.3

2002-03 77.4 22.6

2003-04 75..3 24.7

2004-05 79.5 20.5

2005-06 82.9 17.1

2006-07 82.2 17.8

2007-08 81.6 18.4

2008-09 79.8 20.2

Hypothesis Table 3.5(b): Per cent Change of Cotton and Non-cotton Textiles Imports

(1998-2009)

(value in Rs. billion)

Year Non-Cotton Cotton Total 1998-99 Na na 15.3 1999-00 21.6 115.6 39.2 2000-01 12.8 -1.8 8.5 2001-02 26.1 70.0 37.6 2002-03 24.1 24.2 8.5 2003-04 14.1 28.6 17.3 2004-05 15.1 -9.9 8.9 2005-06 23.9 -0.8 18.9 2006-07 5.3 10.6 6.2 2007-08 3.3 7.9 4.2 2008-09 18.4 32.7 21.1

Hypothesis Table 3.5(c): CAGR of Total Textiles Imports with Break-up for Cotton and

Non-cotton (%) (1994-2009)

Textiles Imports (value in Rs. billion)

Period

Non-Cotton Cotton Total

Total Textiles Imports (value in US $ billion)

1994-2000 na na na 4.54 1999-2005 18.30 7.95 15.67 14.83 1994-2005 na na na 9.56 2004-2009 12.43 11.90 12.33 12.13

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Annexure 3.1

The MINITAB Output of The Time Series Equations Using Dummy Variable

Regression Method

Table-1: Exports of Cotton Textiles

The regression equation is RMG = 11464 + 1709 t + 429 Dt Predictor Coef StDev T P

Constant 11464 1367 8.39 0.000

t 1709.3 306.9 5.57 0.000

Dt 429.0 210.1 2.04 0.075 > 0.05

R-Sq = 96.3% R-Sq(adj) = 95.4%

The regression equation is MADE-UPs = 2557 + 520 t - 48.0 Dt Predictor Coef StDev T P

Constant 2556.6 606.2 4.22 0.003

t 520.0 136.1 3.82 0.005

Dt -48.03 93.16 -0.52 0.620 > 0.05

R-Sq = 84.5% R-Sq(adj) = 80.7%

The regression equation is ONLY COMPONENTS TOTAL = 22729 + 2557 t + 868 Dt Predictor Coef StDev T P

Constant 22729 1496 15.19 0.000

t 2557.0 335.8 7.62 0.000

Dt 868.3 229.9 3.78 0.005 < 0.05

R-Sq = 98.3% R-Sq(adj) = 97.9%

The regression equation is Combined Textiles = 34890 + 4372 t + 1322 Dt Predictor Coef StDev T P

Constant 34890 1996 17.48 0.000

t 4371.8 448.0 9.76 0.000

Dt 1322.3 306.7 4.31 0.003 < 0.05

R-Sq = 98.9% R-Sq(adj) = 98.6%

Table-2: Exports of Non-Cotton Textiles

The regression equation is FIBRE = 6 + 79.3 t + 48.2 Dt Predictor Coef StDev T P

Constant 5.9 152.5 0.04 0.970

t 79.34 34.24 2.32 0.049

Dt 48.16 23.44 2.05 0.074 > 0.05

R-Sq = 89.4% R-Sq(adj) = 86.8%

The regression equation is YARN = 1189 + 309 t + 22.9 Dt Predictor Coef StDev T P

Constant 1188.5 275.4 4.32 0.003

t 308.99 61.82 5.00 0.000

Dt 22.88 42.32 0.54 0.603 > 0.05

R-Sq = 93.4% R-Sq(adj) = 91.8%

The regression equation is RMG = 5694 + 212 t + 275 Dt Predictor Coef StDev T P

Constant 5694.2 823.6 6.91 0.000

t 211.8 184.9 1.15 0.285

Dt 274.6 126.6 2.17 0.062 > 0.05

R-Sq = 83.1% R-Sq(adj) = 78.8%

189

The regression equation is MADE-UPs = 204 + 261 t + 53.4 Dt Predictor Coef StDev T P

Constant 204.3 190.9 1.07 0.316

t 261.28 42.85 6.10 0.000

Dt 53.42 29.33 1.82 0.106 > 0.05

R-Sq = 96.6% R-Sq(adj) = 95.7%

The regression equation is Components Total Exports = 9297 + 1650 t + 297 Dt Predictor Coef StDev T P

Constant 9297 1361 6.83 0.000

t 1649.8 305.5 5.40 0.000

Dt 297.0 209.1 1.42 0.193 > 0.05

R-Sq = 95.5% R-Sq(adj) = 94.4%

The regression equation is Combined Textiles = 34890 + 4372 t + 1322 Dt Predictor Coef StDev T P

Constant 34890 1996 17.48 0.000

t 4371.8 448.0 9.76 0.000

Dt 1322.3 306.7 4.31 0.003 < 0.05

R-Sq = 98.9% R-Sq(adj) = 98.6%

Table-3: Imports of Non-Cotton Textiles

The regression equation is Fibre = 1014 + 164 t - 3.5 Dt Predictor Coef StDev T P

Constant 1014.26 94.45 10.74 0.000

t 163.73 21.20 7.72 0.000

Dt -3.52 14.51 -0.24 0.814 > 0.05

R-Sq = 96.4% R-Sq(adj) = 95.5%

The regression equation is Yarn = 244 + 218 t - 9.5 Dt Predictor Coef StDev T P

Constant 243.55 84.97 2.87 0.021

t 217.55 19.07 11.40 0.000

Dt -9.53 13.06 -0.73 0.486 > 0.05

R-Sq = 98.2% R-Sq(adj) = 97.8%

The regression equation is Fabrics = 77 + 265 t + 8.3 Dt Predictor Coef StDev T P

Constant 77.3 224.4 0.34 0.739

t 265.41 50.37 5.27 0.000

Dt 8.26 34.48 0.24 0.817 > 0.05

R-Sq = 93.5% R-Sq(adj) = 91.8%

The regression equation is Components Total Imports = 1397 + 715 t + 8.9 Dt Predictor Coef StDev T P

Constant 1397.4 268.0 5.21 0.000

t 715.14 60.16 11.89 0.000

Dt 8.94 41.19 0.22 0.834 > 0.05

R-Sq = 98.6% R-Sq(adj) = 98.2%

The regression equation is Combined Textiles = 2417 + 1130 t + 52.4 Dt Predictor Coef StDev T P

Constant 2416.6 407.4 5.93 0.000

t 1130.45 91.45 12.36 0.000

Dt 52.40 62.60 0.84 0.427 > 0.05

R-Sq = 98.8% R-Sq(adj) = 98.5%

------------------------------------------------------------------------------------------------------------

190

Table-4: Imports of Cotton Textiles

The regression equation is FABRICS = - 43 + 101 t + 28.4 Dt Predictor Coef StDev T P

Constant -42.9 151.0 -0.28 0.783

t 101.30 33.89 2.99 0.017

Dt 28.38 23.20 1.22 0.256 > 0.05

R-Sq = 88.8% R-Sq(adj) = 86.0%

The regression equation is Components Total Imports = 727 + 245 t - 53.1 Dt Predictor Coef StDev T P

Constant 727.0 298.9 2.43 0.041

t 244.64 67.10 3.65 0.007

Dt -53.14 45.94 -1.16 0.281 > 0.05

R-Sq = 77.9% R-Sq(adj) = 72.3%

The regression equation is Combined Textiles = 2417 + 1130 t + 52.4 Dt Predictor Coef StDev T P

Constant 2416.6 407.4 5.93 0.000

t 1130.45 91.45 12.36 0.000

Dt 52.40 62.60 0.84 0.427 > 0.05

R-Sq = 98.8% R-Sq(adj) = 98.5%

V. Conclusions based on Empirical Analysis on the Impact of Quota

Free Regime on Indian Exports and Imports of T&C

1. Quota free regime from January 2005 has made a positive impact on the Indian textiles and clothing exports, as well as on the overall exports of the country.

2. Share of cotton textiles and clothing (T&C) exports in total T&C exports has increased to around 63% in recent years, and has been steadily increasing, while that of non-cotton T&C exports has come down to around 37%.

3. Exports of non-cotton T&C recorded higher growth rate of 12.3%, compared to that of cotton T&C of 10.6% during 2004-09.

4. Trade has been shifting towards higher value added products, namely, readymade garments and made-ups, from the earlier stage of exporting raw materials and intermediate products. Manufacturers have also expressed this preference, in view the demand pattern and competitive environment observed in developed countries in particular.

5. Share of yarn and fabrics exports over years, and also growth rate of both categories during 2004-09 have declined. Declining trend of the share of cotton yarn in total T&C exports has been arrested from 2006-07 after 6 years, whereas the declining trend of the share of cotton fabrics in total T&C exports has been arrested from 2007-08 after 8 years.

6. Share of RMG in total T&C exports has increased to 51% in 2008-09 from a low figure of 46% in 2004-05. In 2008-09, share of RMG in cotton T&C exports is 64%, and has steadily increased, whereas RMG’s share in non-cotton T&C exports has come down to 32%. CAGRs of RMG of cotton, non-cotton, and total T&C exports have been the highest of all categories, with the

191

exception of fibres during 2004-09. Cotton and non-cotton made-ups exports have similar share in 2008-09. CAGR for 2004-09 for non-cotton made-ups exports is high, and of cotton made-ups low. As a result, CAGR of made-ups in total T&C exports is also low.

7. Non-cotton textile imports accounted for 75 to 83 per cent in recent years. And cotton textile imports remained around 17 to 20 per cent. Non-cotton imports is, thus, dominant. The imports largely consist of raw materials and semi-raw material. Raw material imports mainly consist of extra long staple cotton.

8. In case of all textile imports, China continues to be the leading source country, followed distantly by USA and Australia. The share of China and other developing countries has increased, and of developed countries declined over years. The leading countries for import of various segments are USA for raw materials (raw cotton), Pakistan for cotton yarn, China for cotton fabrics and RMGs, and Bangladesh for made-ups.

VI. Summing Up

The Indian Textile industry consumes a diverse range of fibres and yarn.

The industry is multi-fibre based. Cotton is the major raw material used in India.

Indian textile industry is skewed towards cotton, with 60 per cent of yarn as

cotton-based, and the remaining 40 per cent being non-cotton-based, using other

fibres. India is the second largest producer of cotton in the world, next to China,

and has the largest cultivated area under cotton, with China as the second, and

USA as the third; and accounts for 20 per cent of global production of cotton.

However, in yield of cotton, India lags far behind a number of other countries.

Having a highly fragmented structure, the Indian Textile and Apparel value

chain consists of four stages: ginning and spinning, weaving and knitting,

processing, and clothing manufacturing. India produces good quality yarn, but

integration of the industry is weak as is the capacity to deliver quality products on

a timely and flexible schedule. India’s competitiveness in global markets is

confined to grey / unprocessed products such as grey yarn and grey fabric. Dyeing

and processing segment of the Indian textile industry is not so technologically well

advanced due to restrictive policy regime in the past. This is reflected in the

relatively inferior quality of domestic dyed and processed yarn and fabric. The mill

sector is not able to withstand competition from the powerloom sector. The

192

powerloom sector is likely to remain competitive vis-à-vis other sectors. In fact,

the handloom sector is finding it extremely difficult to survive, and is competitive

only in a few artisanal products. The share of the mill sector is unlikely to grow

rapidly in future as well.

Quota free regime of international trade from January 2005 has made a

positive impact on the Indian textile and clothing (T&C) exports, as well as on the

overall exports of the country. Share of cotton T&C exports in total T&C exports

has increased to around 63% in recent years, and has been steadily increasing,

while that of non-cotton T&C exports has come down to around 37%. The trade

has been shifting towards higher value added products, namely, readymade

garments and made ups from the earlier stage of exporting raw materials and

intermediate products. Non-cotton textile imports accounted for 75 to 83 per cent

in the recent years, and cotton textile imports remained around 17 to 20 per cent.

Non-cotton imports is, thus, dominant. The imports largely consist of extra long

staple cotton. In case of all textile imports, China continues to be the leading

source country. This is followed distantly by USA and Australia. The share of

China and other developing countries has increased, and of developed countries

declined over years. In case of raw cotton, USA continues to be the leading source

country, followed by Egypt and Burkina Faso.

220

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 4500 5063 5725 5218 5939 6565 6991 7783 8475 9744 9098

USA 760 888 1005 889 1134 1154 1262 1633 1641 1656 1487

UAE 237 270 297 316 397 476 565 520 512 633 664

Germany 302 330 317 250 262 305 337 414 424 485 465

Bangladesh 138 174 202 184 168 207 253 311 292 435 413

UK 339 328 332 306 301 347 344 356 389 417 371

Italy 236 216 261 242 252 291 338 393 421 412 325

Turkey 48 66 121 74 139 207 224 234 307 513 293

Sri Lanka 85 99 106 98 115 139 139 174 191 224 254

Brazil 23 23 55 69 112 248 250

Egypt 71 68 87 70 84 107 130 165 208 252 235

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

USA 16.89 17.53 17.56 17.04 19.10 17.58 18.05 20.97 19.35 16.99 16.34

UAE 5.27 5.33 5.18 6.06 6.69 7.25 8.08 6.68 6.04 6.49 7.30

Germany 6.71 6.51 5.53 4.79 4.41 4.64 4.81 5.32 5.00 4.97 5.10

Bangladesh 3.07 3.44 3.52 3.52 2.83 3.15 3.61 3.99 3.44 4.46 4.53

UK 7.53 6.47 5.79 5.86 5.06 5.27 4.92 4.57 4.59 4.28 4.07

Italy 5.25 4.27 4.56 4.65 4.24 4.43 4.83 5.04 4.96 4.23 3.56

Turkey 1.06 1.30 2.11 1.43 2.34 3.15 3.20 3.00 3.62 5.26 3.22

Sri Lanka 1.88 1.95 1.85 1.88 1.94 2.11 1.99 2.23 2.25 2.29 2.79

Brazil 0.39 0.35 0.78 0.88 1.44 2.54 2.75

Egypt 1.58 1.35 1.51 1.35 0.41 1.62 1.85 2.11 2.44 2.85 2.57

Sources: CMIE (July 2005 and October 2009), op. cit.

Table 3.24(A): Top 10 Countries of India's Exports: Textiles (excl. RMG) - Value and Percentage Share (1998 - 2009)

(value in US $ million)

(% share in total exports)

221

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 37914 42996 52876 49377 57384 61942 64337 79033 88031 90233 98652

USA 9248 10276 13165 11285 14039 13437 15533 20977 21520 18958 20168

UK 2692 2966 3442 3534 4022 4228 4746 6072 6346 6731 7812

German F REP 2948 2822 3111 2956 3598 3801 3711 5062 5037 5596 7514

U Arab Emts 2739 3333 3894 3285 3885 5138 5050 4426 4833 5502 7584

China PRP na na 383 390 392 655 553 2413 3617 4560 2046

France 1767 2004 2224 2189 2509 2703 2947 3650 3827 3632 4400

Italy 1568 1567 1983 1895 2074 2464 2991 3612 4119 3561 3803

Bangladesh 607 765 1131 890 929 1235 1257 1696 1557 2937 2369

Turkey na na 586 359 693 997 1061 1194 1998 2516 1672

Spain 624 733 961 996 1339 1536 1822 2587 2447 2359 2996

Total 100 100 100 100 100 100 100 100 100 100 100.00

USA 24.39 23.90 24.90 22.86 24.46 21.69 24.14 26.54 24.45 21.01 20.44

UK 7.10 6.90 6.51 7.16 7.01 6.83 7.38 7.68 7.21 7.46 7.92

German F REP 7.78 6.56 5.88 5.99 6.27 6.14 5.77 6.40 5.72 6.20 7.62

U Arab Emts 7.22 7.75 7.36 6.65 6.77 8.29 7.85 5.60 5.49 6.10 7.69

China PRP 0.72 0.79 0.68 1.06 0.86 3.05 4.11 5.05 2.07

France 4.66 4.66 4.21 4.43 4.37 4.36 4.58 4.62 4.35 4.03 4.46

Italy 4.14 3.64 3.75 3.84 3.61 3.98 4.65 4.57 4.68 3.95 3.85

Bangladesh 1.60 1.78 2.14 1.80 1.62 1.99 1.95 2.15 1.77 3.26 2.40

Turkey 1.11 0.73 1.21 1.61 1.65 1.51 2.27 2.79 1.69

Spain 1.65 1.71 1.82 2.02 2.33 2.48 2.83 3.27 2.78 2.61 3.04

Note : na: not available

Sources : 1. Office of the Textile Commissioner, Ministry of Textiles, Government of India, Compendium of Textile Statistics, 2002, 2004,

Official Indian Textile Statistics 2008 and 2009, Mumbai.

2 : Website : txcindia.com

Table 3.24(B): Top 10 Countries of India's Exports: All Textiles - Value and Percentage Share (1998 - 2009)

(% share in total exports)

(value in Rs. crore)

222

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 49.17 17.81 48.47 8.98 10.41 205.22 94.01 655.91 1348.90 2203.13 624.10

China 2.50 3.23 0.03 0.15 35.46 20.15 414.97 655.88 1003.99 277.42

Pakistan 0.02 43.90 10.22 45.33 198.76 445.48 83.20

Bangladesh 2.09 0.04 2.13 0.42 0.17 49.45 5.88 48.57 45.82 276.13 80.22

Indonesia 0.94 0.17 0.22 14.52 4.71 27.35 68.52 113.15 48.28

Thailand 0.45 0.37 0.46 0.05 0.05 7.84 5.76 20.58 65.79 43.93 34.12

Hong Kong 9.64 0.11 3.89 0.82 2.31 17.88 50.37 53.02 19.50

Viet Nam 0.10 0.16 0.02 2.61 1.31 21.58 47.54 72.73 15.64

Taiwan (Taipei) 9.04 0.60 0.59 0.09 12.82 18.99 23.92 35.67 42.61 11.70

Malaysia 0.06 3.70 1.01 1.28 0.53 1.48 1.72 6.47 15.86 10.45

Belgium 1.49 1.24 1.40 0.27 1.12 0.19 1.22 0.71 2.48 3.22 7.13

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

China 5.09 6.66 0.36 1.44 17.27 21.43 63.26 48.62 45.57 44.45

Pakistan 0.05 21.39 10.86 6.91 14.73 20.22 13.33

Bangladesh 4.26 0.20 4.40 4.72 1.64 24.09 6.25 7.40 3.39 12.53 12.85

Indonesia 1.92 0.35 2.11 7.07 5.00 4.17 5.07 5.13 7.73

Thailand 0.92 2.08 0.95 0.61 0.48 3.82 6.12 3.13 4.87 1.99 5.46

Hong Kong 19.61 0.62 8.02 0.39 2.45 2.72 3.73 2.40 3.12

Viet Nam 0.20 0.32 0.24 1.27 1.39 3.29 3.52 3.30 2.50

Taiwan (Taipei) 18.38 3.36 1.21 0.88 6.24 20.20 3.64 2.64 1.93 1.87

Malaysia 0.13 7.64 11.28 12.26 0.25 1.57 0.26 0.47 0.72 1.67

Belgium 3.04 6.99 2.90 3.00 10.76 0.09 1.30 0.10 0.18 0.14 1.14

Sources: CMIE (July 2005 and October 2009), op. cit.

Table 3.25(A): Top 10 Countries of India's Exports: Cotton Raw incl. Waste - Value and Percentage Share (1998 - 2009)

( value in US $ million)

(% share in total exports)

223

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 20692 7707 22413 4272 5050 94236 42258 290435 610781 886540 286581

China PRP na 0 1473 16 73 16283 9057 183749 296984 404005 127389

Pakistan na na 0 0 0 20161 4593 20073 89998 179260 38205

Bangladesh 881 16 1172 202 83 22708 2643 21507 20746 111113 36837

Indonesia na 0 78 0 106 6669 2116 12111 31027 45533 22168

Vietnam soc rep na na 71 10 0 1198 591 9556 21528 29268 7184

Turkey na 0 103 10 21 325 72 2296 41785 22411 2912

Hong Kong na na 1773 0 0 377 1039 7916 22809 21334 8955

Thailand 191 160 210 26 24 3601 2587 9111 29789 17677 15667

Chinese Taipei na 259 267 0 45 5885 8538 10593 16150 17145 5374

Nepal 1 120 155 70 224 791 489 573 371 7447 539

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

China PRP na 0.00 6.57 0.37 1.45 17.28 21.43 63.27 48.62 45.57 44.45

Pakistan na na 0.00 0.00 0.00 21.39 10.87 6.91 14.73 20.22 13.33

Bangladesh 4.26 0.21 5.23 4.73 1.64 24.10 6.25 7.41 3.40 12.53 12.85

Indonesia na 0.00 0.35 0.00 2.10 7.08 5.01 4.17 5.08 5.14 7.74

Vietnam soc rep na na 0.32 0.23 0.00 1.27 1.40 3.29 3.52 3.30 2.51

Turkey na 0.00 0.76 0.23 0.42 0.34 0.17 0.79 6.84 2.53 1.02

Hong Kong na na 7.91 0.00 0.00 0.40 2.46 2.73 3.73 2.14 3.12

Thailand 0.92 2.08 0.94 0.61 0.48 3.82 6.12 3.14 4.88 1.99 5.47

Chinese Taipei na 3.36 1.19 0.00 0.89 6.24 20.20 3.65 2.64 0.93 1.88

Nepal nag 1.56 0.69 1.64 4.44 0.84 1.16 0.20 0.06 0.84 0.19

Note : na: not available neg: neglegible

Sources : Textile Statistics (2002, 2004, 2008, & 2009), op. cit.

Table 3.25(B): Top 10 Countries of India's Exports: Cotton Raw including Waste - Value and Percentage Share (1998 - 2009)

(% share in total exports)

(value in Rs. lakh)

224

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 3724 4194 4896 4484 5095 5597 5885 6415 6941 8030 7617

USA 473 556 687 611 795 805 867 1110 1131 1142 1099

UAE 230 263 290 308 388 466 550 503 495 594 620

Bangladesh 138 173 200 183 166 205 248 304 276 422 399

Germany 171 163 191 155 169 195 203 232 254 291 301

UK 294 284 290 255 246 276 275 276 298 319 289

Italy 211 194 242 225 233 267 308 355 374 356 279

Sri Lanka 83 98 104 96 114 138 138 173 190 223 253

Turkey 35 54 98 61 113 177 185 201 265 468 243

Brazil 15 12 15 14 21 21 52 63 115 236 236

Pakistan na na na na 4 8 7 21 10 41 206

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

USA 12.69 13.26 14.03 13.63 15.59 14.38 14.74 17.31 16.29 14.22 14.42

UAE 6.18 6.27 5.92 6.86 7.61 8.32 9.34 7.84 7.12 7.39 8.14

Bangladesh 3.70 4.12 4.09 4.08 3.26 3.67 4.21 4.74 3.97 5.25 5.23

Germany 4.59 3.90 3.91 3.46 3.32 3.47 3.45 3.61 3.65 3.61 3.94

UK 7.89 6.78 5.93 5.69 4.82 4.93 4.67 4.30 4.28 3.96 3.79

Italy 5.66 4.62 4.95 5.03 4.57 4.77 5.23 5.53 5.38 4.42 3.66

Sri Lanka 2.24 2.33 2.13 2.15 2.24 2.45 2.35 2.70 2.74 2.78 3.32

Turkey 0.94 1.29 2.01 1.35 2.22 3.15 3.14 3.12 3.81 5.82 3.19

Brazil 0.40 0.29 0.30 0.31 0.41 0.37 0.88 0.98 1.65 2.93 3.09

Pakistan na na na na 0.07 0.14 0.11 0.33 0.13 0.51 2.70

Sources: CMIE (July 2005 and October 2009), op.cit.

Table 3.26: Top 10 Countries of India's Exports: Yarns, Fabrics, Made-ups - Value and Percentage Share (1998 - 2009)

( value in US $ million)

(% share in total exports)

225

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 2771 3093 3466 3083 3358 3397 3449 3944 4216 4656 4125

USA 384 448 533 493 625 552 609 833 864 905 867

Bangladesh 123 157 176 166 139 175 208 244 227 374 324

Sri Lanka 68 74 77 70 79 85 87 107 128 152 176

Germany 137 129 143 118 137 145 144 146 150 161 174

Italy 152 130 152 162 155 174 189 229 250 216 165

Korea Republic (South) 84 190 131 132 179 215 175 217 211 173 138

UK 193 194 196 172 156 162 155 147 154 152 134

Egypt 51 44 50 42 49 65 72 88 118 117 123

Brazil 3 4 7 18 25 70 114

China 41 56 72 75 64 74 68 100 95 78 103

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

USA 13.85 14.50 15.36 15.98 18.61 16.26 17.64 21.12 20.48 19.43 21.02

Bangladesh 4.45 5.08 5.08 5.40 4.12 5.13 6.03 6.18 5.37 8.02 7.84

Sri Lanka 2.44 2.38 2.23 2.28 2.35 2.49 2.52 2.72 3.04 3.26 4.26

Germany 4.93 4.17 4.11 3.83 4.07 4.25 4.17 3.69 3.56 3.46 4.21

Italy 5.47 4.19 4.39 5.25 4.62 5.11 5.48 5.80 5.91 4.63 4.00

Korea Republic (South) 3.03 6.14 3.78 4.29 5.33 6.32 5.05 5.50 4.99 3.71 3.34

UK 6.97 6.28 5.65 5.57 4.64 4.77 4.49 3.73 3.65 3.26 3.25

Egypt 1.83 1.41 1.44 1.37 1.45 1.90 2.08 2.24 2.78 2.51 2.99

Brazil 0.09 0.10 0.20 0.44 0.60 1.50 2.77

China 1.47 1.81 2.06 2.44 1.90 2.17 1.97 2.54 2.24 1.67 2.49

Sources: CMIE (July 2005 and October 2009), op. cit.

Table 3.27(A): Top 10 Countries of India's Exports: Cotton Yarn, Fabrics, Made-ups, etc. - Value and Percentage Share (1998 - 2009)

(value in US $ million)

(% share in total exports)

226

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 4520 5322 6181 5294 5820 5883 5494 6443 7470 7603 6873

Bangladesh 263 368 661 552 438 439 637 792 821 1095 1062

Turkey na na 50 49 102 209 147 164 249 757 208

Korea RP 331 782 541 574 813 941 725 903 907 671 609

Italy 339 264 293 302 359 394 378 523 614 471 362

Egypt A RP 167 144 160 135 162 208 247 330 445 390 500

Portugal 46 50 86 83 111 101 119 170 273 300 224

Peru na na na na na na 38 54 105 299 246

China P RP 120 171 254 276 273 287 262 410 397 282 416

Japan 170 247 260 318 370 309 268 252 342 233 225

Brazil na na na na na na 11 40 67 203 446

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.11

Bangladesh 5.81 6.91 10.70 10.42 7.53 7.46 11.60 12.30 10.99 14.41 15.45

Turkey 0.81 0.93 1.74 3.55 2.68 2.54 3.34 9.96 3.03

Korea RP 7.32 14.69 8.76 10.85 13.97 15.99 13.20 14.02 12.14 8.82 8.86

Italy 7.49 4.96 4.74 5.70 6.16 6.69 6.89 8.12 8.22 6.19 5.27

Egypt A RP 3.71 2.71 2.58 2.54 2.77 3.53 4.50 5.12 5.95 5.13 7.28

Portugal 1.03 0.93 1.40 1.56 1.91 1.72 2.17 2.63 3.65 3.95 3.26

Peru 0.69 0.83 1.40 3.93 3.58

China P RP 2.66 3.21 4.10 5.21 4.69 4.88 4.76 6.37 5.31 3.71 6.05

Japan 3.76 4.65 4.21 6.00 6.35 5.26 4.87 3.90 4.58 3.06 3.28

Brazil 0.21 0.62 0.90 2.66 6.48

Note : na : not available

Sources : Textile Statistics (2002, 2004, 2008 and 2009), op. cit.

Table 3.27(B): Top 10 Countries of India's Exports: Cotton Yarn - Value and Percentage Share (1998 - 2009)

(Excluding Sewing Thread)

(% share in total exports)

(value in Rs. crore)

227

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 3730 4039 4457 4093 4685 4390 4103 3742 4050 4167 4446

Bangladesh 230 288 310 225 271 352 286 268 193 389 409

Sri Lanka 171 167 166 153 227 240 245 263 280 314 485

USA 563 595 480 351 481 375 298 285 271 224 201

U Arab Emts 189 217 258 193 227 217 299 326 225 208 244

Turkey 3 35 92 89 95 113 167 141 165 194 168

Italy 181 159 188 275 237 217 215 175 225 188 167

Benin 52 68 79 106 115 97 93 81 101 170 140

Senegal na na na na na na 27 47 124 130 193

Togo 44 44 89 100 147 117 91 87 113 124 138

Sudan na na na na na na 18 36 94 107 106

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Bangladesh 6.17 7.12 6.96 5.50 5.78 8.02 6.96 7.17 4.77 9.34 9.21

Sri Lanka 4.59 4.14 3.72 3.74 4.85 5.47 5.97 7.02 6.90 7.53 10.91

USA 15.10 14.72 10.77 8.57 10.26 8.55 7.26 7.62 6.68 5.38 4.52

U Arab Emts 5.08 5.38 5.80 4.73 4.85 4.94 7.29 8.72 5.56 4.98 5.49

Turkey 0.09 0.86 2.05 2.18 2.02 2.58 4.08 3.75 4.07 4.65 3.77

Italy 4.84 3.92 4.22 6.73 5.06 4.95 5.24 4.68 5.56 4.51 3.75

Benin 1.39 1.69 1.77 2.59 2.46 2.21 2.27 2.17 2.49 4.07 3.15

Senegal 0.65 1.25 3.05 3.12 4.34

Togo 1.17 1.10 2.00 2.45 3.14 2.67 2.21 2.33 2.80 2.97 3.11

Sudan 0.43 0.96 2.31 2.57 2.38

Note : na : not available

Sources : Textile Statistics (2002, 2004, 2008 and 2009), op. cit.

Table 3.27(C): Top 10 Countries of India's Exports: Cotton Fabrics - Value and Percentage Share (1998 - 2009)

(% share in total exports)

(value in Rs. crore)

228

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 4364 4771 5578 5024 5701 6236 6559 8616 8886 9692 10952

USA 1426 1480 1849 1465 1729 1618 1990 2852 2888 2834 2715

UK 292 347 406 424 512 537 657 944 945 1197 1293

Germany 393 320 356 364 467 497 449 678 646 861 1123

UAE 404 491 544 366 396 613 522 446 523 691 945

France 312 342 350 340 396 435 472 639 670 706 793

Spain 54 69 81 72 114 153 209 360 308 368 502

Italy 127 139 158 151 169 223 291 383 443 424 444

Netherlands 144 148 158 189 224 225 205 293 350 371 429

Canada 177 204 235 219 257 241 251 275 273 252 269

Saudi Arabia 68 98 110 114 130 165 169 196 191 215 252

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

USA 32.68 31.03 33.15 29.15 30.33 25.95 30.34 33.10 32.50 29.24 24.78

UK 6.69 7.28 7.28 8.44 8.97 8.61 10.01 10.95 10.63 12.34 11.80

Germany 9.01 6.70 6.39 7.24 8.19 7.97 6.84 7.86 7.26 8.88 10.25

UAE 9.26 10.29 9.75 7.28 6.94 9.83 7.96 5.17 5.88 7.12 8.62

France 7.15 7.16 6.28 6.76 6.94 6.99 7.19 7.41 7.53 7.28 7.23

Spain 1.25 1.45 1.45 1.44 2.00 2.45 3.18 4.18 3.46 3.79 4.58

Italy 2.91 2.90 2.83 3.01 2.96 3.57 4.43 4.44 4.98 4.37 4.05

Netherlands 3.30 3.10 2.84 3.76 3.93 3.60 3.12 3.40 3.93 3.82 3.91

Canada 4.06 4.27 4.21 4.36 4.50 3.86 3.82 3.18 3.07 2.59 2.45

Saudi Arabia 1.56 2.05 1.98 2.27 2.27 2.64 2.57 2.27 2.14 2.21 2.30

Sources: CMIE (July 2005 and October 2009), op. cit.

Table 3.28(A): Top 10 Countries of India's Exports: Readymade Garments (RMG) - Value and Percentage Share (1998-2009)

(value in US $ million)

(% share in total exports)

229

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 18368 20650 25480 23882 27771 28688 29538 38193 40280 39028 50391

USA 6002 6407 8436 6961 8362 7435 8954 12635 13086 11411 12479

UK 1227 1503 1853 2014 2493 2472 2954 4183 4282 4818 5939

German F REP 1655 1384 1625 1730 2304 2284 2025 3005 2928 3468 5165

France 1313 1479 1599 1614 1925 2005 2131 2833 3039 2846 3642

U Arab Emts 1701 2125 2487 1738 1927 2820 2351 1981 2373 2781 4353

Italy 535 600 729 719 830 1025 1308 1698 2009 1706 2042

Netherlands 606 639 723 899 1102 1033 922 1300 1584 1493 1972

Spain 229 299 369 344 555 704 940 1596 1397 1480 2305

Canada 745 882 1071 1042 1247 1108 1129 1216 1236 1015 1234

Saudi Arabia 287 423 505 542 632 757 759 869 866 863 1160

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

USA 32.67 31.03 33.11 29.15 30.11 25.92 30.31 33.08 32.49 29.24 24.76

UK 6.68 7.28 7.27 8.43 8.98 8.62 10.00 10.95 10.63 12.35 11.79

German F REP 9.01 6.70 6.38 7.24 8.30 7.96 6.85 7.87 7.27 8.89 10.25

France 7.15 7.16 6.28 6.76 6.93 6.99 7.21 7.42 7.54 7.29 7.23

U Arab Emts 9.26 10.29 9.76 7.28 6.94 9.83 7.96 5.19 5.89 7.12 8.64

Italy 2.91 2.90 2.86 3.01 2.99 3.57 4.43 4.44 4.99 4.37 4.05

Netherlands 3.30 3.09 2.84 3.76 3.97 3.60 3.12 3.40 3.93 3.83 3.91

Spain 1.25 1.45 1.45 1.44 2.00 2.46 3.18 4.18 3.47 3.79 4.57

Canada 4.06 4.27 4.20 4.36 4.49 3.86 3.82 3.18 3.07 2.60 2.45

Saudi Arabia 1.56 2.05 1.98 2.27 2.27 2.64 2.57 2.28 2.15 2.21 2.30

Note : na: not available

RMG : Readymade Garments (Articles of Apparel and Clothing Accessories)

Sources : Textile Statistics (2002, 2004, 2008 and 2009), op. cit.

Table 3.28(B): Top 10 Countries of India's Exports: Readymade Garments (RMG) - Value and Percentage Share (1998 - 2009 )

(% share in total exports)

(value in Rs. crore)

230

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 3147 3326 3934 3713 4453 4793 5042 6553 6910 7539 8389

USA 1083 1071 1297 1064 1295 1177 1532 2218 2354 2348 2248

UK 180 221 292 332 406 421 526 740 740 943 1023

Germany 284 231 265 298 406 436 397 587 551 761 989

France 228 254 259 260 312 348 378 500 542 588 652

UAE 269 294 374 255 296 449 339 259 289 352 456

Spain 38 45 58 54 92 114 158 269 238 281 386

Netherlands 116 117 126 155 193 192 178 251 303 325 371

Italy 98 107 110 117 139 175 228 303 361 335 350

Canada 143 167 185 176 215 202 211 223 228 214 216

Belgium 46 50 42 61 66 67 63 85 124 150 182

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

USA 34.40 32.21 32.97 28.65 29.06 24.55 30.38 33.85 34.07 31.14 26.80

UK 5.73 6.65 7.41 8.94 9.10 8.77 10.44 11.28 10.71 12.50 12.18

Germany 9.04 6.93 6.73 8.04 9.11 9.09 7.88 8.95 7.97 10.09 11.79

France 7.25 7.63 6.59 7.00 6.99 7.25 7.49 7.62 7.84 7.80 7.77

UAE 8.54 8.85 9.50 6.86 6.65 9.36 6.73 3.95 4.17 4.67 5.43

Spain 1.21 1.36 1.46 1.45 2.07 2.37 3.13 4.10 3.44 3.72 4.59

Netherlands 3.70 3.50 3.20 4.18 4.33 4.00 3.53 3.83 4.39 4.31 4.42

Italy 3.11 3.21 2.80 3.16 3.12 3.66 4.52 4.62 5.21 4.44 4.17

Canada 4.55 5.03 4.71 4.75 4.81 4.22 4.17 3.40 3.30 2.83 2.57

Belgium 1.46 1.50 1.06 1.64 1.47 1.40 1.24 1.30 1.79 1.98 2.17

Sources: CMIE (July 2005 and October 2009), op.cit.

Table 3.29: Top 10 Countries of India's Exports: RMG of Cotton incl. Accessories - Value and Percentage Share (1998 - 2009)

( value in US $ million)

(% share in total exports)

231

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

Total 3582 4885 5347 7306 7943 9267 10041 11838 12486 13065 15820

China PRP 439 672 850 1202 1598 2257 3254 4771 5195 5498 6231

USA 157 271 862 824 594 849 564 505 568 647 969

Australia 413 405 483 621 566 501 460 477 613 599 641

Nepal 117 151 174 239 194 350 370 322 257 536 486

Chinese Taipei 296 366 453 546 532 580 705 664 625 513 615

Hong Kong 129 95 118 144 270 290 387 505 460 392 424

Thailand 196 196 182 201 257 252 327 418 422 386 434

Korea RP 329 354 358 765 488 564 537 459 402 371 451

Italy 82 75 128 95 188 281 253 333 297 341 369

Bangladesh 147 193 215 161 168 136 54 229 307 326 483

Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

China PRP 12.27 13.75 15.89 16.46 20.12 24.36 32.41 40.30 41.61 42.08 39.39

USA 4.38 5.55 16.13 11.28 7.48 9.16 5.61 4.27 4.55 4.96 6.12

Australia 11.54 8.29 9.03 8.50 7.13 5.41 4.58 4.03 4.91 4.58 4.05

Nepal 3.27 3.09 3.26 3.27 2.44 3.78 3.68 2.72 2.06 4.10 3.07

Chinese Taipei 8.25 7.49 8.47 7.48 6.70 6.26 7.02 5.60 5.00 3.93 3.89

Hong Kong 3.61 1.94 2.21 1.97 3.40 3.13 3.85 4.27 3.69 3.00 2.68

Thailand 5.48 4.01 3.40 2.75 3.23 2.72 3.25 3.53 3.38 2.95 2.74

Korea RP 9.18 7.26 6.70 10.48 6.14 6.09 5.35 3.87 3.22 2.84 2.85

Italy 2.29 1.53 2.39 1.30 2.36 3.03 2.52 2.81 2.38 2.61 2.33

Bangladesh 4.11 3.94 4.01 2.20 2.11 1.47 0.54 1.93 2.46 2.49 3.06

Sources : Textile Statistics (2002, 2004, 2008 and 2009), op. cit.

Table 3.30: Top 10 Countries of India's Imports: All Textiles - Value and Percentage Share (1998 -2009)

(% share in total imports)

(value in Rs. crore)

232

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 90.57 289.72 259.75 432.70 256.23 341.91 252.63 158.91 146.44 226.67 368.04

USA 5.33 15.58 20.03 135.89 78.45 118.58 64.25 44.74 53.77 87.55 88.86

Egypt 17.79 17.96 15.10 24.30 42.86 57.03 36.95 54.52 46.55 62.94 58.61

Tanzania 5.83 4.20 7.64 5.35 8.18 28.36 3.37 1.34 1.47 45.06

Uzbekistan 1.24 12.01 9.93 12.69 3.87 6.96 4.86 3.21 0.37 0.67 38.44

Burkina Faso 1.92 12.76 9.42 12.13 8.83 7.23 7.13 0.33 1.05 12.68 35.81

China na na na na 5.08 0.99 0.38 0.07 0.31 2.82 10.37

Pakistan 0.55 1.81 0.21 0.21 0.00 0.00 3.29 0.01 0.02 0.49 10.29

Mali 8.57 11.14 1.91 18.76 27.29 11.71 1.70 1.24 2.81 9.10

Turkmenistan 0.19 0.72 0.79 2.61 7.84 9.86 11.24 7.25 4.83 7.36

Sudan 8.08 2.19 4.75 2.62 3.45 15.20 6.20 13.18 4.95 6.07 6.07

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

USA 5.88 5.38 7.71 31.45 30.61 34.68 25.43 28.15 36.72 38.62 24.14

Egypt 19.64 6.20 5.81 5.62 16.72 16.68 14.62 34.30 31.78 27.76 15.92

Tanzania 2.01 1.62 1.77 2.08 2.39 11.22 2.11 0.91 0.64 12.24

Uzbekistan 1.36 4.14 3.82 2.94 1.51 2.03 1.92 2.02 0.25 0.29 10.44

Burkina Faso 2.12 4.41 3.63 2.81 3.44 2.11 2.82 0.21 0.71 5.59 9.72

China na na na na 1.98 0.29 0.14 0.04 0.20 1.24 2.81

Pakistan 0.61 0.62 0.08 0.05 1.30 0.01 0.21 2.79

Mali 2.96 4.29 0.44 7.32 7.98 4.63 1.06 0.84 1.24 2.47

Turkmenistan 0.06 0.28 0.18 1.01 2.29 3.90 7.07 4.95 2.13 1.99

Sudan 8.92 0.76 1.83 0.61 1.34 4.44 2.45 8.29 4.87 2.68 1.65

Sources: CMIE (July 2005 and October 2009), op. cit.

Table 3.31(A): Top 10 Countries of India's Imports: Cotton Raw & Waste - Value and Percentage Share (1998 - 2009)

( value in US $ million )

(% share in total imports)

233

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 38334 125393 118473 205362 123761 156993 113556 70366 66308 91214 169022

USA 2245 6741 9136 64589 37891 54450 28882 19811 24349 35229 40806

Egypt A RP 7486 7773 6887 11551 20703 26182 16609 24142 21078 25328 26914

Burkina Faso 807 5524 4296 5765 4265 3322 3203 148 475 5101 16442

Benin 1378 8437 12993 16201 4939 6680 4671 48 2 4297 na

Sudan 3401 947 2164 1245 1666 6980 2787 5837 3232 2445 2789

Turkmenistan na 80 330 373 1259 3600 4434 4976 3283 1943 3378

Cameroon 118 2812 1553 3891 2845 3609 2224 461 832 1904 1454

Senegal na na na na na na 685 0 357 1391 2062

Bangladesh na na na na na na 888 872 1098 1280 1505

Ethiopia na na 374 1100 1258 na 174 0 461 1231 na

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

USA 5.86 5.38 7.71 31.45 30.62 34.68 25.43 28.15 36.72 38.62 24.14

Egypt A RP 19.53 6.20 5.81 5.62 16.73 16.68 14.63 34.31 31.79 27.77 15.92

Burkina Faso 2.11 4.41 3.63 2.81 3.45 2.12 2.82 0.21 0.72 5.59 9.73

Benin 3.59 6.73 10.97 7.89 3.99 4.25 4.11 0.07 0.00 4.71 na

Sudan 8.87 0.76 1.83 0.61 1.35 4.45 2.45 8.30 4.87 2.68 1.65

Turkmenistan 0.06 0.28 0.18 1.02 2.29 3.90 7.07 4.95 2.13 2.00

Cameroon 0.31 2.24 1.31 1.89 2.30 2.30 1.96 0.66 1.25 2.09 0.86

Senegal 0.60 0.00 0.54 1.52 1.22

Bangladesh 0.78 1.24 1.66 1.40 0.89

Ethiopia 0.32 0.54 1.02 0.15 0.00 0.70 1.35 na

Sources : Textile Statistics (2002, 2004, 2008 and 2009), op. cit.

Table 3.31(B): Top 10 Countries of India's Imports : Raw Cotton including Waste - Value and Percentage Share

(1998 - 2009)

(% share in total imports)

(value in Rs. lakh)

234

Country 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8

World 972 1259 1571 2050 2139 2465 2536

China 216 365 584 899 1009 1188 1164

Taiwan (Taipei) 101 113 147 146 128 125 129

USA 39 58 55 54 62 67 112

Nepal 38 76 82 72 57 133 106

Korea Republic (South) 100 119 117 100 87 90 92

Hong Kong 56 63 86 113 101 97 91

Thailand 41 49 60 81 83 91 87

Bangladesh 6 9 3 29 39 37 81

Italy 30 50 46 64 56 77 75

Germany 30 37 48 61 67 50 63

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00

China 22.19 28.96 37.37 43.84 47.16 48.19 45.89

Taiwan (Taipei) 10.35 8.98 9.37 7.10 5.97 5.05 5.10

USA 4.04 4.61 3.49 2.62 2.90 2.70 4.43

Nepal 3.94 6.03 5.22 3.52 2.65 5.39 4.16

Korea Republic (South) 10.25 9.48 7.45 4.89 4.05 3.66 3.63

Hong Kong 5.72 4.97 5.46 5.53 4.74 3.94 3.59

Thailand 4.23 3.87 3.82 3.94 3.88 3.69 3.44

Bangladesh 0.59 0.71 0.20 1.39 1.83 1.51 3.20

Italy 3.03 3.94 2.92 3.12 2.59 3.12 2.96

Germany 3.08 2.95 3.06 2.98 3.12 2.04 2.48

Source: CMIE (October 2009), op. cit.

Table 3.32: Top 10 Countries of India's Imports: Textile Yarn, Fabrics, & Made-ups

Articles - Value and Percentage Share (2002 - 09)

(value in US $ million)

(% share in total imports)

235

Country 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11

World 24.83 30.60 48.87 87.97 142.20 195.71 279.09 316.95 317.67 259.77

China 5.38 7.06 15.23 16.11 48.89 75.25 131.78 153.81 155.60 117.03

Pakistan 0.02 0.84 2.83 1.51 3.64 11.83 28.11 48.86 44.81 34.14

Italy 1.51 1.85 1.51 4.14 9.15 6.80 15.78 16.92 23.21 20.65

Turkey 0.06 0.83 0.66 0.72 3.03 6.90 7.32 7.60 20.88 19.88

Hong Kong 4.40 3.60 6.46 20.07 23.21 37.28 39.23 28.76 24.54 18.53

Taiwan (Taipei) 2.18 3.07 4.72 5.76 11.35 15.69 11.06 9.33 6.09 6.66

Korea Reupublic (South) 2.45 2.88 3.82 6.12 8.09 6.90 5.43 5.21 3.69 5.04

Romania 0.00 0.10 4.60

Sri Lanka 0.13 0.08 0.11 0.60 1.67 2.47 4.48 7.39 5.11 3.98

Indonesia 1.41 1.25 1.23 3.25 2.82 3.46 5.33 5.61 4.96 2.97

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

China 21.66 23.09 31.16 18.31 34.38 38.45 47.21 48.52 48.97 45.04

Pakistan 0.07 2.75 5.80 1.71 2.56 6.04 10.07 15.41 14.10 13.14

Italy 6.10 6.06 3.08 4.70 6.43 3.47 5.65 5.33 7.30 7.94

Turkey 0.25 2.73 1.34 0.82 2.13 3.52 2.62 2.39 6.57 7.65

Hong Kong 17.71 11.77 13.21 22.81 16.32 19.04 14.05 9.07 7.72 7.13

Taiwan (Taipei) 8.77 10.02 9.66 6.54 7.98 8.01 3.96 2.94 1.91 2.56

Korea Reupublic (South) 9.85 9.41 7.82 6.95 5.68 3.52 1.94 1.64 1.16 1.94

Romania 0.03 1.76

Sri Lanka 0.51 0.27 0.22 0.67 1.17 1.26 1.60 2.33 1.60 1.53

Indonesia 5.67 4.09 2.51 3.69 1.98 1.76 1.91 1.76 1.56 1.14

Sources: CMIE (July 2005 and October 2009), op. cit.

Table 3.33(A): Top 10 Countries of India's Imports: Cotton Yarn & Fabrics - Value and Percentage Share (1999 - 2009)

(value in US $ million)

(% share in toatl imports)

236

Country 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11

World 26.44 41.89 36.18 39.60 81.81 59.93 61.97 68.32 97.73 220.99

Bangladesh 10.86 22.86 9.51 0.57 0.10 0.56 14.76 19.47 12.54 51.68

China 3.60 4.01 4.28 8.28 6.84 11.95 25.63 27.19 36.08 44.98

USA 5.71 5.98 8.28 11.00 22.78 12.07 2.09 2.25 4.73 44.60

Canada 1.98 1.67 3.66 6.57 18.50 5.85 0.41 0.48 1.05 24.20

Nepal 1.31 1.46 1.89 1.46 7.38 5.90 1.26 1.66 15.61 16.14

Korea Republic

(South) 0.05 0.42 0.16 1.67 11.33 10.24 4.14 4.35 9.08 7.70

UAE 0.75 1.41 1.31 0.83 1.21 1.70 2.66 2.93 4.23 7.75

Germany 0.24 0.40 0.49 0.49 0.93 0.62 0.47 0.48 0.69 2.85

Sri Lanka na na na 0.01 0.00 0.05 0.02 0.01 0.09 2.36

Viet Nam 0.05 0.01 0.10 0.72 0.17 0.34 0.37 0.24 2.19

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Bangladesh 41.07 54.56 26.30 1.45 0.11 0.92 23.82 28.50 12.82 23.38

China 13.60 9.58 11.83 20.90 8.35 19.93 41.35 39.80 36.91 20.35

USA 21.59 14.29 22.88 27.77 27.84 20.13 3.37 3.29 4.83 20.18

Canada 7.50 3.98 10.12 16.58 22.61 9.76 0.65 0.70 1.07 10.95

Nepal 4.96 3.49 5.21 3.68 9.01 9.85 2.04 2.42 15.97 7.30

Korea Republic

(South) 0.17 1.00 0.45 4.20 13.85 17.08 6.68 6.36 9.29 3.48

UAE 2.85 3.36 3.61 2.08 1.47 2.83 4.29 4.29 4.32 3.23

Germany 0.92 0.97 1.37 1.23 1.13 1.03 0.75 0.69 0.70 1.29

Sri Lanka 0.01 0.08 0.03 0.02 0.08 1.06

Viet Nam 0.12 0.03 0.24 0.87 0.29 0.54 0.54 0.24 0.98

Sources: CMIE (July 2005 and October 2009), op.cit.

Table 3.33(B): Top 10 Countries of India's Imports: Made-ups Articles - Value and Percentage Share (1999 - 2009)

(% share in total imports)

(value in US $ million)

237

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 2060 1387 3111 3446 5108 3060 3780 5648 10264 8699 6374

Pakistan 0 6 234 1006 158 372 781 2314 6634 4662 3764

China P RP 225 468 1050 308 419 385 849 1272 1196 1913 898

Vietnam Soc REP 0 0 0 28 na na 0 157 406 534 209

Bangladesh na na 5 0 45 69 0 25 74 217 158

Unspecified na na 0 0 37 92 219 298 235 213 209

Italy na na 76 6 234 278 86 61 146 165 196

Hong Kong 1106 10 649 1288 3138 435 788 253 35 133 225

Turkey na na na na na na 30 120 460 107 96

Nepal 15 0 456 79 0 749 0 15 0 96 118

Indonesia 285 234 151 122 201 9 119 470 144 81 33

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Pakistan 0.45 7.53 29.18 3.09 12.15 20.66 40.97 64.63 53.59 59.05

China P RP 10.92 33.72 33.75 8.94 8.21 12.58 22.46 22.52 11.65 21.99 14.09

Vietnam Soc REP 0.80 0.00 2.78 3.96 6.14 3.28

Bangladesh 0.16 0.01 0.88 2.25 0.00 0.44 0.72 2.49 2.48

Unspecified 0.72 3.01 5.79 5.28 2.29 2.45 3.28

Italy 2.44 0.16 4.57 9.08 2.28 1.08 1.42 1.90 3.07

Hong Kong 53.68 0.72 20.87 37.37 61.44 14.20 20.85 4.48 0.34 1.53 3.53

Turkey 0.79 2.12 4.48 1.23 1.51

Nepal 0.71 14.66 2.29 24.48 0.27 1.10 1.85

Indonesia 13.86 16.84 4.84 3.54 3.94 0.29 3.15 8.32 1.40 0.93 0.52

Note : na: not available

Sources : Textile Statistics (2002, 2004, 2008 and 2009), op. cit.

Table 3.33(C): Top 10 Countries of India's Imports: Cotton Yarn - Value and Percentage Share (1998 - 2009)

(% share in total imports)

(value in Rs. lakh)

238

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 22421 9322 10788 19662 37280 62001 83919 117609 133315 119265 113615

China P RP 5442 1860 2172 6896 7341 22062 32972 57019 68259 60552 53823

Pakistan 25 2 149 341 na na 4536 10132 15405 13353 11901

Hong Kong 4539 1812 985 1768 6546 10202 15936 17047 12959 9727 8356

Italy 1032 563 770 700 1765 3921 2964 6921 7480 9124 8936

Turkey 7 27 380 312 335 1392 3064 3119 2983 8293 9035

Chinese Taipei 963 883 1383 2242 2666 5181 6990 4873 4213 2372 3036

Greece na na 0 0 0 293 1756 1852 2025 2206 492

Sri Lanka na na 38 48 285 767 1108 1978 3288 2041 1789

Indonesia 691 376 421 462 1367 1286 1438 1890 2393 1917 1359

Korea RP 550 1048 1287 1800 2922 3635 2987 2393 2321 1483 2319

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

China P RP 24.27 19.95 20.14 35.07 19.69 35.58 39.29 48.48 51.20 50.77 47.37

Pakistan 0.11 0.02 1.38 1.74 5.41 8.61 11.56 11.20 10.47

Hong Kong 20.24 19.44 9.13 8.99 17.56 16.46 18.99 14.49 9.72 8.16 7.35

Italy 4.60 6.04 7.14 3.56 4.73 6.32 3.53 5.88 5.61 7.65 7.87

Turkey 0.03 0.28 3.52 1.59 0.90 2.24 3.65 2.65 2.24 6.95 7.95

Chinese Taipei 4.29 9.47 12.82 11.40 7.15 8.36 8.33 4.14 3.16 1.99 0.43

Greece 0.47 2.09 1.57 1.52 1.85 4.33

Sri Lanka 0.35 0.24 0.76 1.24 1.32 1.68 2.47 1.71 1.57

Indonesia 3.08 4.04 3.90 2.35 3.67 2.07 1.71 1.61 1.79 1.61 1.20

Korea RP 2.45 11.24 11.93 9.16 7.84 5.86 3.56 2.03 1.74 1.24 2.04

Note : na: not available

Sources : Textile Statistics (2002, 2004, 2008 and 2009), op. cit.

Table 3.33(D): Top 10 Countries of India's Imports: Cotton Fabrics - Value and Percentage Share (1998 - 2009)

(value in Rs. lakh)

(% share in total imports)

239

Country 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11

World 16.16 21.45 36.30 24.00 38.73 33.27 56.82 70.87 111.02 134.91

China 2.13 5.24 10.51 2.79 5.04 5.39 11.53 21.02 33.25 40.19

Italy 1.19 0.99 0.53 0.82 1.02 2.20 5.40 7.05 12.88 15.98

UK 0.41 0.57 0.50 1.78 0.73 2.04 4.38 5.26 10.02 12.65

Hong Kong 1.05 0.95 1.39 1.79 1.97 3.12 7.32 6.52 9.83 9.53

Nepal 2.34 3.29 5.75 2.32 9.79 6.50 8.74 9.01 10.10 7.33

France 0.18 0.21 0.11 0.39 0.61 0.39 0.86 1.63 4.14 6.01

Bangladesh 0.33 1.20 1.86 2.56 4.58 0.83 0.75 1.13 3.19 5.60

Thailand 4.41 1.19 0.77 0.60 0.63 1.39 2.52 3.13 3.50 4.72

Sri Lanka 0.37 0.13 0.07 0.08 0.46 0.42 0.82 1.02 2.59 4.47

Spain 0.01 0.10 0.32 0.46 0.60 0.74 1.26 1.61 2.50 3.57

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

China 13.18 24.45 28.95 11.62 13.02 16.20 20.30 29.66 29.94 29.78

Italy 7.37 4.61 1.46 3.42 2.62 6.61 9.50 9.95 11.60 11.84

UK 2.53 2.66 1.37 7.42 1.87 6.13 7.70 7.42 9.02 9.37

Hong Kong 6.49 4.43 3.83 7.44 5.07 9.39 12.87 9.20 8.85 7.06

Nepal 14.48 15.32 15.83 9.67 25.27 19.54 15.38 12.71 9.09 5.43

France 1.12 1.00 0.31 1.64 1.56 1.18 1.51 2.29 3.72 4.45

Bangladesh 2.03 5.61 5.13 10.65 11.83 2.48 1.32 1.59 2.87 4.15

Thailand 27.31 5.54 2.13 2.50 1.62 4.16 4.43 4.41 3.15 3.49

Sri Lanka 2.27 0.62 0.18 0.32 1.19 1.26 1.43 1.44 2.33 3.31

Spain 0.09 0.45 0.89 1.91 1.54 2.22 2.22 2.26 2.25 2.64

Sources: CMIE (July 2005 & October 2009), op. cit.

Table 3.34(A): Top 10 Countries of India's Imports: Readymade Garments (Woven & Knit) - Value and Percentage

Share (1999-2009)

( value in US $ million)

(% share in total Imports)

240

Country 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

World 3863 6994 9894 17253 11593 17782 14954 25159 33392 45379 63770

China PRP 407 922 2392 4995 1348 2316 2420 5110 9520 13380 18590

Italy 247 516 451 251 398 467 990 2390 3190 5180 7340

Nepal 70 1013 1518 2731 1122 4494 2920 3870 4080 4070 3380

UK 134 177 261 237 861 333 920 1940 2380 4030 5810

Hong Kong 440 454 433 660 863 903 1410 3240 2950 3960 4370

France na na 98 53 190 279 180 380 740 1660 2760

Thailand 871 1910 542 368 290 289 620 1120 1420 1410 2170

Bangladesh 3 142 565 885 1235 2105 370 330 510 1290 2570

Sri Lanka na na 61 31 37 212 190 360 460 1040 2380

Spain 41 6 44 153 222 274 330 560 730 1010 1640

World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

China P RP 10.55 13.18 24.18 28.95 11.62 13.02 16.18 20.31 28.51 29.49 29.15

Italy 6.41 7.37 4.56 1.46 3.43 2.62 6.62 9.50 9.55 11.41 11.51

Nepal 1.82 14.48 15.35 15.83 9.68 25.27 19.53 15.38 12.22 8.97 5.30

UK 3.47 2.53 2.63 1.37 7.43 1.87 6.15 7.71 7.13 8.88 9.11

Hong Kong 11.39 6.49 4.38 3.83 7.45 5.08 9.43 12.88 8.83 8.73 6.85

France 0.99 0.31 1.64 1.57 1.20 1.51 2.22 3.66 4.33

Thailand 22.55 27.31 5.48 2.13 2.51 1.63 4.15 4.45 4.25 3.11 3.40

Bangladesh 0.08 2.03 5.71 5.13 10.65 11.84 2.47 1.31 1.53 2.84 4.03

Sri Lanka 0.61 0.18 0.32 1.19 1.27 1.43 1.38 2.29 3.73

Spain 1.05 0.09 0.44 0.89 1.91 1.54 2.21 2.23 2.19 2.23 2.57

Note : na: not available

RMG : Readymade Garments (Articles of Apparel and Clothing Accessories)

Sources : Textile Statistics (2002, 2004, 2008 and 2009), op. cit.

(% share in total imports)

(value in Rs. lakh)

Table 3.34(B): Top 10 Countries of India's Imports : Readymade Garmends (RMG) - Value and

Percentage Share (1998 - 2009)

241

Category/

YearFibre Yarn Fabrics RMG Made-ups Total

1 2 3 4 5 6 7

1994-95 0.83 26.10 32.11 97.68 29.15 185.87

(-65.1) (62.9) (34.6) (11.7) (27.1) (21.8)

1999-00 0.77 53.44 40.39 142.21 31.77 268.58

(-62.7) (17.3) (8.3) (8.5) (19.9) (44.0)

2004-05 4.23 56.42 41.03 224.83 65.87 392.38

(-55.1) (-5.9) (-6.5) (3.3) (16.2) (1.2)

2008-09 28.76 69.12 44.46 375.99 68.71 587.04

(-67.6) (-10.0) (6.7) (26.1) (5.2) (2.9)

1994-95 0.64 4.56 16.39 44.23 4.16 69.98

(64.1) (86.1) (4.6) (52.4) (14.6) (36.8)

1999-00 2.61 16.64 36.04 64.29 7.56 161.38

(-49.5) (9.4) (14.2) (22.3) (19.8) (-1.1)

2004-05 6.30 34.18 74.37 70.57 22.83 250.99

(41.3) (14.2) (5.0) (1.8) -(8.3)

2008-09 15.41 45.26 110.50 127.91 39.51 399.48

(6.4) (-9.4) (30.4) (38.7) (29.9) (20.4)

1994-95 1.47 30.66 48.50 141.91 33.31 255.85

(-46.9) (66.0) (22.7) (21.8) (25.4) (25.5)

1999-00 3.38 70.08 76.43 206.50 39.33 429.96

(-11.3) (15.3) (11.0) (12.4) (19.9) (13.4)

2004-05 10.53 90.60 115.40 295.38 88.70 643.37

(-24.2) (0.8) (0.6) (3.0) (18.8) (3.9)

2008-09 44.17 114.38 154.96 503.90 108.22 986.52

(-57.2) (9.8) (22.6) (29.1) (13.0) (9.3)

Notes: 1. Figures in parentheses indicate percentage change (growth / decline) over

the previous year. Percentage share of each segment in relation to total

cotton and total non-cotton textiles exports is also presented annually.

2. One US $ equals around Indian Rs.47 in 2010.

3. One billion equals 1000 millions or 100 crores.

4. Exports of cotton and non-cotton textiles from India are categorised into

five product groups: Fibre, Yarn, Fabrics, Readymade Garments (RMGs),

and Made-ups. RMGs and Made-ups are referred to as high value added

products. Value added in other categories is low. In column 7, data for

non-cotton and total exports given for years other than 1994-95, include others.

5. CAGR (Compound Annual Growth Rate) is worked out for specified periods

of a few years indicating the annual average during each period, whereas

change of one year over the previous year is presented annually. Both are

expressed as percentages, and refer to annual changes. For purposes of

analysis, per cent change and per cent share are extensively used.

Source: Textile Commissioner, Ministry of Textiles, Government of India, Compendium

of Textile Statistics, various issues up to 2009, Mumbai.

Total Exports (C+NC)

Table 3.35(A): Segment-wise Textiles Exports with break-up for Cotton

and Non-Cotton with Percentage Change over the Previous Year

(1994-2009)

(Value in Rs. billion)

Cotton Exports (C)

Non-Cotton Exports (NC)

242

Total Fibre Yarn Fabrics RMGMade-

upsFibre Yarn Fabrics RMG

Made-

upsOthers

1 2 3 4 5 6 7 8 9 10 11 12 13 14

1994-00 7.6 -1.5 15.4 4.7 7.8 1.7 1994-95 0.4 14.0 17.3 52.6 15.7 -

1999-05 7.9 40.6 1.1 0.3 9.6 15.7 1999-00 0.3 19.9 15.0 53.0 11.8 -

1994-05 7.8 37.7 8.0 2.5 8.7 8.5 2004-05 1.1 14.4 10.4 57.3 16.8 -

2004-09 10.6 61.5 5.2 2.0 13.7 1.1 2008-09 4.9 11.8 7.6 64.0 11.7 -

1994-00 18.2 32.5 29.6 17.1 7.7 12.7 1994-95 0.9 6.5 23.5 63.2 5.9 -

1999-05 9.2 19.3 15.5 15.6 6.3 24.8 1999-00 1.6 10.3 22.3 39.9 4.7 21.2

1994-05 13.6 25.7 22.3 16.3 4.8 18.6 2004-05 2.5 13.6 29.6 28.1 9.1 17.1

2004-09 12.3 25.1 7.3 10.4 16.0 14.7 2008-09 3.9 11.3 27.7 32.0 9.9 15.2

1994-00 10.9 18.1 18.0 9.5 7.8 3.4 1994-95 0.5 12.0 19.0 55.5 13.0 -

1999-05 8.4 25.5 5.3 8.6 7.4 17.7 1999-00 0.8 16.3 17.8 48.0 9.2 7.9

1994-05 9.7 21.8 11.4 9.1 7.6 10.3 2004-05 1.6 14.1 17.9 45.9 13.8 6.7

2004-09 11.3 43.1 6.0 7.7 14.3 5.1 2008-09 4.5 11.6 15.7 51.0 11.0 6.2

Source: Computed based on values given in Table 3.35(A)

(% based on Value in Rs. billion)

Total Exports (C+NC)

% Share of Exports of Segments to the Respective

Totals of the three Categories

Table 3.35(B): Segment-wise CAGR and Per cent Share of Textiles Exports with break-up for Cotton and Non-cotton

(1994-2009)

Category/

Year

Category/

Period

Non-Cotton Exports (NC)

Cotton Exports (C)

CAGR of Exports of Segments

201

Rs. crore US $ million Rs. crore US $ million

1 2 3 4 5 61991-92 12471 5070 44041 (35.3) 17865 (-1.5) 28.41992-93 15484 (24.2) 5052 (-0.4) 53688 (21.9) 18537 (3.8) 27.31993-94 18817 (21.5) 5999 (18.8) 69751 (29.9) 22238 (20.0) 27.01994-95 23701 (26.0) 7548 (25.8) 82674 (18.5) 26330 (18.4) 28.71995-96 28520 (20.3) 8527 (13.0) 106353 (28.6) 31797 (20.8) 26.81996-97 33920 (18.9) 9555 (12.1) 118817 (11.7) 33470 (5.3) 28.51997-98 36412 (7.4) 9798 (2.5) 130100 (9.5) 35006 (4.6) 28.01998-99 37914(4.1) 9546 (-2.6) 139752 (7.4) 33218 (-5.1) 28.71999-00 42996 (13.4) 10521 (10.2) 159561 (14.2) 36822 (10.8) 28.62000-01 52876 (23.0) 12014 (14.2) 203571 (27.6) 44560 (21.0) 27.02001-02 49377 (-6.6) 10801 (-10.1) 209018 (2.7) 43827 (-1.6) 24.62002-03 57384 (16.2) 12445 (15.2) 255137 (22.1) 52719 (20.3) 23.62003-04 61942 (7.9) 13532 (8.7) 293367 (15.0) 63843 (21.1) 21.22004-05 64337 (3.9) 14055 (3.9) 375340 (27.9) 83536 (30.8) 16.82005-06 79033 (22.8) 17553 (24.9) 456418 (21.6) 103091 (23.4) 17.02006-07 88031 (11.4) 19147 (9.1) 571779 (25.3) 126414 (22.6) 15.12007-08 90233 (2.5) 22147 (15.6) 655864 (14.7) 163132 (29.0) 13.62008-09 98652 (9.3) 20978 (-5.3) 840755 (28.2) 185295 (13.6) 11.32009-10(P) 105864 (7.3) 22380 (6.7) 854125 (0.52) 178662 (-3.6) 12.5

Rs. crore $ million Rs. crore $ million1994-2000 12.7 6.9 14.1 6.91999-2005 8.4 6.0 18.7 17.81994-2005 10.5 6.4 16.3 12.22004-2009 11.3 10.5 22.3 22.0

Note : Figures in parentheses indicate percentage change over the previous year. P: ProvisonalSources: 1) GOI, Economic Survey 2009-10.

2) Offical Indian Textile Statistics, 2009. Ministry of Textiles, GOI.

Textile

exports %

to total

exports

Table 3.8(A): Textile Exports with Percentage Change and Percentage Share (including

Jute, Coir and Handicrafts) in Total Merchandise Exports (1991-2010)

Year

Textile Exports Overall Exports

Textile Exports Overall Exports

Table 3.8(B): CAGR (%) for Textile Exports and Overall Exports (Value in Rs. crore and $

million) (1994-2009)

Period

202

Rs. crore US $ million Rs. crore US $ million

1 2 3 4 5 61991-92 na na 47851(10.8) 19411(-19.4) na1992-93 1343 464 63375(32.4) 21882(12.7) 2.21993-94 1617 (20.4) 515 (11.0) 73101(15.3) 23306(6.5) 2.21994-95 2854 (76.5) 909 (76.5) 89971(23.1) 28654(22.9) 3.21995-96 3185 (11.6) 952 (4.7) 122678(36.4) 36678(28.0) 2.61996-97 2716 (-14.7) 765 (-19.6) 138920(13.2) 39133(6.7) 2.01997-98 3063 (12.8) 824 (7.7) 154176(11.0) 41484(6.0) 2.01998-99 3533 (15.3) 840 (1.9) 178332(15.7) 42389(2.2) 2.01999-00 4917 (39.2) 1135 (35.1) 215236(20.7) 49671(17.2) 2.32000-01 5337 (8.5) 1168 (2.9) 230873(7.3) 50536(1.7) 2.32001-02 7342 (37.6) 1539 (31.8) 245200(6.2) 51413(1.7) 3.02002-03 7966 (8.5) 1646 (7.0) 297206(21.2) 61412(19.4) 2.72003-04 9347 (17.3) 2034 (23.6) 359108(20.8) 78149(27.3) 2.62004-05 10182 (8.9) 2266 (11.4) 501065(39.5) 111517(42.7) 2.02005-06 12102 (18.9) 2733 (20.6) 660409(31.8) 149166(33.8) 1.82006-07 12856 (6.2) 2841 (4.0) 840506(27.3) 185735(24.5) 1.52007-08 13391 (4.2) 3329(17.2) 1012312(20.4) 251654(35.5) 1.32008-09 16211 (21.1) 3582 (7.6) 1374436(35.8) 303696(20.7) 1.22009-10(P) 16282 (0.4) 3443 (-3.9) 1356469 (-1.3) 286823 (-5.6) 1.2

Rs. crore $ million Rs. crore $ million1994-2000 11.5 4.5 19.1 11.61999-2005 15.7 14.8 18.4 17.61994-2005 13.6 9.6 18.7 14.62004-2009 12.3 12.1 28.7 28.5

.Note : Figures in parentheses indicate percentage change over the previous year. P: ProvisionalSources : 1) ibid.

Textile Imports Overall ImportsPeriod

Table 3.9(A): Textile Imports with Percentage Change and Percentage Share

(excluding Coir and Handicrafts) in Total Merchandise Imports

(1991-2010)

Year

Textile Imports Overall Imports Textile

imports %

to total

imports

(Value in Rs. crore and US $ million)Table 3.9(B): CAGR (%) for Textile Imports and Overall Imports (1994-2009)

203

Year

Total

merchandise

exports

Textiles (excl.

RMG)

Yarn, fabrics,

made-ups

Cotton yarn,

fabrics, made-

ups, etc.

Readymade

garments (RMG)

RMG of cotton

incl. accessories

Cotton raw incl.

waste

1 2 3 4 5 6 7 8

1998-99 33218 (-5.1) 4500 (-13.1) 3724 (-14.6) 2771 (-15.2) 4364 (12.5) 3147 (9.3) 49 (-77.8)

1999-00 36822 (10.8) 5063 (12.5) 4194 (12.6) 3093 (11.6) 4771 (9.3) 3326 (5.7) 18 (-63.8)

2000-01 44560 (21.0) 5725 (13.1) 4896 (16.8) 3466 (12.1) 5578 (16.9) 3934 (18.3) 48 (172.2)

2001-02 43827 (-1.6) 5218 (-8.9) 4484 (-8.4) 3083 (-11.1) 5024 (-9.9) 3713 (-5.6) 9 (-81.5)

2002-03 52719 (20.3) 5939 (13.9) 5095 (13.7) 3358 (8.9) 5701 (13.5) 4453 (20.0) 10 (15.9)

2003-04 63843 (21.1) 6565 (10.5) 5597 (9.9) 3397 (1.2) 6236 (9.4) 4793 (7.6) 205 (1871.4)

2004-05 83536 (30.8) 6991 (6.5) 5885 (5.2) 3449 (1.5) 6559 (5.2) 5042 (5.2) 94 (-54.2)

2005-06 103091 (23.4) 7783 (11.3) 6415 (9.0) 3944 (14.4) 8616 (31.4) 6553 (30.0) 656 (597.7)

2006-07 126414 (22.6) 8475 (8.9) 6941 (8.2) 4216 (6.9) 8886 (3.1) 6910 (5.5) 1349 (105.7)

2007-08 163132 (29.0) 9744 (15.0) 8030 (15.7) 4656 (10.4) 9692 (9.1) 7539 (9.1) 2203 (63.3)

2008-09 185295 (13.6) 9098 (-6.6) 7617(-5.1) 4125 (-11.4) 10952 (13.0) 8389 (11.3) 624 (-71.7)

1998-99 100.0 13.6 11.2 8.3 13.1 9.5 0.15

1999-00 100.0 13.8 11.4 8.4 13.0 9.1 0.05

2000-01 100.0 13.0 11.1 7.9 12.6 8.9 0.11

2001-02 100.0 11.9 10.2 7.0 11.4 8.4 0.02

2002-03 100.0 11.2 9.6 6.4 10.8 8.4 0.01

2003-04 100.0 10.3 8.8 5.3 9.8 7.5 0.32

2004-05 100.0 8.4 7.0 4.1 7.9 6.0 0.11

2005-06 100.0 7.6 6.2 3.8 8.4 6.4 0.63

2006-07 100.0 6.7 5.5 3.3 7.0 5.5 1.06

2007-08 100.0 6.0 4.9 2.9 5.9 4.6 1.35

2008-09 100.0 5.0 4.2 2.3 6.0 4.6 0.34

Sources : Centre for Monitoring Indian Economy (CMIE), Foreign Trade and Balance of Payments, July 2005 and

October 2009 volumes, Mumbai.

Table 3.10(A): Textile Exports, Category-wise with Percentage Change over the previous year given in parenthesis (1998-2009)

(value in US $ million)

Table 3.10(B): Percentage Share of Textile Exports in Total Merchandise Exports (1998 - 2009)

204

YearTotal merchandise

Imports

Textile yarn, fabrics,

made-up articles

(incl. RMG)

Cotton yarn,

and fabrics

Made-up

textiles

articles

Readymade

garments

(woven & knit)

Cotton raw &

waste

1 2 3 4 5 6 71998-99 42389 (2.2) 457 (11.6) na na na 91 (316.8)1999-00 49671 (17.2) 539 (18.0) 25 26 16 290 (219.9)2000-01 50536 (1.7) 598 (10.9) 31 (23.2) 42 (58.4) 21 (32.7) 260 (-10.4)2001-02 51413 (1.7) 750 (25.5) 49 (59.7) 36 (-13.6) 36 (69.2) 432 (66.3)2002-03 61412 (19.4) 972 (29.7) 88 (80.1) 40 (9.5) 24 (-33.9) 256 (-40.7)2003-04 78149 (27.3) 1259 (29.5) 142 (61.7) 82 (106.6) 39 (61.3) 342 (33.4)2004-05 111517 (42.7) 1571 (24.8) 196 (37.6) 60 (-26.7) 33 (-14.1) 253 (-26.1)2005-06 149166 (33.8) 2050 (30.5) 279 (42.6) 62 (3.4) 57 (70.8) 159 (-37.1)2006-07 185735 (24.5) 2139 (4.3) 317 (13.6) 68 (10.2) 71 (24.7) 146 (-7.9)2007-08 251654 (35.5) 2465 (15.3) 318 (0.2) 98 (43.1) 111 (56.7) 227 (54.8)2008-09 303696 (20.7) 2536 (2.9) 260 (-18.2) 221 (126.1) 135 (21.5) 368 (62.4)

1998-99 100.0 1.08 0.211999-00 100.0 1.08 0.05 0.05 0.03 0.582000-01 100.0 1.19 0.06 0.08 0.04 0.522001-02 100.0 1.45 0.09 0.07 0.07 0.842002-03 100.0 1.58 0.14 0.06 0.03 0.412003-04 100.0 1.60 0.18 0.10 0.04 0.432004-05 100.0 1.40 0.17 0.05 0.02 0.222005-06 100.0 1.37 0.18 0.04 0.03 0.102006-07 100.0 1.15 0.17 0.03 0.03 0.072007-08 100.0 0.98 0.12 0.03 0.04 0.092008-09 100.0 0.87 0.08 0.07 0.04 0.12

Sources : ibid

Table 3.11(B): Percentage Share of Textile Imports in Total Merchandise Imports (1998 - 2009)

Table 3.11(A): Textile Imports, Category-wise with Percentage Change over the Previous year given in parenthesis

(1998-2009)

(value in US $ million)

na: not available

205

Item 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1 2 3 4 5 6 7 8 9 10 11 12

Quantity (in thousand tonnes) 41.9 15.9 30.2 8.2 11.7 179.6 86.6 614.8 1162.2 1458.0 458.0

na (-62.1) (89.9) (-72.8) (42.7) (1435.0) (-51.8) (609.9) (89.0) (25.5) (-68.6)

Value (in US $ million) 49.0 18.0 49.0 9.0 10.0 205.0 94.0 656.0 1349.8 2202.0 623.0

(-77.8) (-63.3) (172.2) (-81.6) (111.1) (195.0) (-54.1) (597.9) (105.8) (63.1) (-71.7)

Quantity (in thousand tonnes) 57.4 237.4 212.3 387.0 233.8 252.9 192.1 98.8 81.5 137.0 212.0

na (313.6) (-10.6) (82.3) (-39.6) (8.2) (-24.0) (-48.6) (-17.5) (68.1) (54.7)

Value (in US $ million) 91.0 289.0 259.0 431.0 256.0 342.0 252.7 159.0 146.5 227.0 368.0

(316.8) (217.6) (-10.4) (66.4) (-40.6) (33.6) (-26.0) (-37.2) (-7.9) (54.9) (62.1)

Note : Figures in parentheses indicate percentage change over the previous year.

na: not available

Source: GOI, Economic Survey, various issues.

Table 3.12(A): Export of Raw Cotton with Percentage Change (1998 - 2009)

Table 3.12(B): Import of Raw Cotton with Pecentage Change (1998 - 2009)

206

CottonNon-

cottonCotton

Non-

cotton

Total

Textiles

1 2 3 4 5 6 7 8 9 101993-94 152.64 51.17 203.81 74.9 25.1 na na na 29.21994-95 185.87 69.98 255.85 72.7 27.3 21.8 36.8 25.5 30.91995-96 217.75 78.96 296.71 73.4 26.6 17.2 12.8 16.0 27.91996-97 271.27 82.79 354.06 76.6 23.4 24.6 4.9 19.3 29.81997-98 283.56 100.73 384.29 73.8 26.2 4.5 21.7 8.5 29.51998-99 216.03 163.11 379.14 57.0 43.0 -23.8 61.9 -0.01 27.11999-00 268.58 161.38 429.96 62.5 37.5 24.3 -1.1 13.4 26.92000-01 329.94 198.82 528.76 62.4 37.6 39.3 2.9 23.0 26.02001-02 312.37 181.40 493.77 63.3 36.7 -5.3 -8.8 -6.6 23.62002-03 370.53 203.31 573.84 64.6 35.4 18.6 12.1 16.2 22.52003-04 387.60 231.82 619.42 62.6 37.4 4.6 14.0 7.9 21.12004-05 392.38 251.00 643.38 61.0 39.0 1.2 8.3 3.9 17.12005-06 495.56 294.78 790.33 62.7 37.3 26.3 17.4 22.8 17.32006-07 560.66 319.65 880.31 63.7 36.3 13.1 8.4 11.4 15.42007-08 570.55 331.78 902.33 63.2 36.8 1.8 3.8 2.5 13.82008-09 587.04 399.48 986.52 59.5 40.5 2.9 20.4 9.3 11.7

Period CottonNon-

Cotton

Total

Textile

s1 2 3 4 5 6 7

1994-2000 7.64 18.19 10.94 14.05 6.87 6.941999-2005 7.88 9.24 8.39 18.66 6.00 17.801994-2005 7.76 13.62 9.66 16.33 6.41 12.242004-2009 10.60 12.32 11.28 22.34 10.53 22.04

Note: Figures given in the tables 3.13(A & B) are extracted from the respective component tables for fibre, yarn, fabrics, RMG, and made-ups. Cotton, non-cotton, and total of the two categories are presented here. Non-cotton and total textiles figures include a few others beyond five categories for which details are given in the subsequent tables. Total textiles exports and Imports values as given here differ from those given elsewhere in earlier tables. This is due to the difference in coverage of items in the respective tables. Percentage change indicated is over the previous year.

Sources: Textile Commissioner, Ministry of Textiles, Government of India, Compendium of Textile Statistics, 2002, 2004, 2008, and 2009, Mumbai. Website : www.txcindia.com

% share of

textile

exports to

overall

exports

(value in Rs. billion)

Table 3.13(A-1): Exports - All Textiles, with break-up for Cotton and Non-cotton

(1993-2009)

Year CottonNon-

cotton

Total

Textiles

% Share of

total% Change

Table 3.13(A-2): CAGR of Textile Exports with break-up for Cotton and Non-cotton

(1994-2009)

Textile ExportsOverall

Exports

Textile

Exports

Overall

Exports

% based on value in Rs. billion

% based on

value in US $

billion

207

CottonNon-

cottonCotton

Non-

cotton

Total

Textiles

1 2 3 4 5 6 7 8 9 101998-99 659 2874 3533 18.7 81.3 na na 15.3 2.01999-00 1421 3496 4917 28.9 71.1 115.6 21.6 39.2 2.32000-01 1395 3942 5337 26.1 73.9 -1.8 12.8 8.5 2.32001-02 2372 4970 7342 32.3 67.7 70.0 26.1 37.6 3.02002-03 1797 6169 7966 22.6 77.4 -24.2 24.1 8.5 2.72003-04 2311 7036 9347 24.7 75.3 28.6 14.1 17.3 2.62004-05 2083 8099 10182 20.5 79.5 -9.9 15.1 8.9 2.02005-06 2066 10036 12102 17.1 82.9 -0.8 23.9 18.9 1.82006-07 2284 10572 12856 17.8 82.2 10.6 5.3 6.2 1.52007-08 2465 10926 13391 18.4 81.6 7.9 3.3 4.2 1.32008-09 3271 12940 16211 20.2 79.8 32.7 18.4 21.1 1.2

Period CottonNon-

Cotton

Total

Textile

s1 2 3 4 5 6 7

1994-2000 na na na 19.06 4.54 11.631999-2005 7.95 18.30 15.67 18.41 14.83 17.561994-2005 na na na 18.74 9.56 14.562004-2009 11.90 12.43 12.33 28.69 12.13 28.46

Note: Figures given in the tables 3.13(A & B) are extracted from the respective component tables for fibre, yarn, fabrics, RMG, and made-ups. Cotton, non-cotton, and total of the two categories are presented here. Non-cotton and total textiles figures include a few others beyond five categories for which details are given in the subsequent tables. Total textiles exports and Imports values as given here differ from those given elsewhere in earlier tables. This is due to the difference in coverage of items in the respective tables. Percentage change indicated is over the previous year.

Sources: ibid

Table 3.13(B-1): Imports - All Textiles, with break-up for Cotton and Non-cotton (1998-

2009)

Table 3.13(B-2): CAGR of Textile Imports with break-up for Cotton and Non-cotton

(1994-2009)

(value in Rs. crore)% share of

textile

Imports to

overall

Imports

Year CottonNon-

cotton

Total

Textiles

% Share of

total

% based on value in Rs. crore

% based on

value in US $

billion

Textile ImportsOverall

Imports

Textile

Imports

Overall

Imports

% Change

208

Raw

Cotton

Cotton

Waste

Total

Cotton

Non -

CottonTotal

1 2 3 4 5 6 7 8

1994-95 na na 83 64 147 25585 82674

(65.1) (64.1) (-46.9) (25.5) (18.5)

1998-99 159 48 207 175 382 37914 139752

(-34.1) (13.6) (-18.4) (-1.3) (7.4)

1999-00 49 28 77 261 338 42996 159095

(-68.9) (-42.3) (-62.7) (-49.5) (-11.3) (-13.41) (-13.84)

2000-01 197 27 224 272 496 52876 201356

(297.8) (-1.2) (190.8) (4.1) (46.6) (23.0) (26.6)

2001-02 39 4 43 211 254 49377 209018

(-80.5) (-84.4) (-81.0) (-22.2) (-48.7) (-6.6) (3.8)

2002-03 48 2 50 365 415 57384 255137

(26.8) (-58.7) (18.3) (72.0) (63.0) (16.2) (22.1)

2003-04 928 14 942 447 1389 61942 293367

(1805.4) (688.1) (1766.4) (22.6) (235.0) (7.9) (15.0)

2004-05 390 33 423 630 1053 64337 375340

(-58.0) (134.0) (-55.2) (41.3) (-24.2) (3.9) (27.9)

2005-06 2867 37 2904 597 3501 79033 456418

(635.0) (13.9) (587.3) (-5.4) (232.4) (22.8) (21.6)

2006-07 6046 62 6108 1175 7283 88031 571779

(110.8) (67.9) (110.3) (96.9) (108.0) (11.4) (25.3)

2007-08 8752 113 8865 1448 10313 90233 655864

(44.8) 82.0 (45.1) (23.2) (41.6) (2.5) (14.7)

2008-09 2782 84 2866 1551 4417 98652 839978

(-68.2) (-25.7) (-67.7) (7.1) (-57.2) (9.3) (28.1)

Note: Figures given in parentheses indicate percentage change over the previous year.

Sources: Office of the Textile Commissioner, Ministry of Textiles, GOI, Compendium

of Textile Statistics , 2002, 2004, and Official Indian Textile Statistics

2008 and 2009 , Mumbai, website: www.txcindia.com

Table 3.14(A): Fibre Exports, Total Textiles Exports, excluding Coir and Handicrafts, and

Overall Exports with Percentage Change (1994 - 2009)

(value in Rs. crore)

Year

Fibre Exports Total Textiles

Exports as

stated above

Overall

Exports

209

Raw

Cotton

Cotton

Waste

Total

Cotton

Non -

CottonTotal

Raw

Cotton

Cotton

Waste

Total

Cotton

Non -

CottonTotal

1 2 3 4 5 6 7 8 9 10 11

1994-95 na na 0.10 0.08 0.18 na na 0.32 0.25 0.57

1998-99 0.11 0.03 0.15 0.12 0.27 0.42 0.13 0.55 0.46 1.01

1999-00 0.03 0.02 0.05 0.16 0.21 0.12 0.06 0.18 0.61 0.79

2000-01 0.10 0.01 0.11 0.14 0.25 0.37 0.05 0.42 0.51 0.94

2001-02 0.02 0.00 0.02 0.10 0.12 0.08 0.01 0.09 0.43 0.52

2002-03 0.02 0.00 0.02 0.14 0.16 0.08 0.00 0.09 0.63 0.72

2003-04 0.32 0.00 0.32 0.15 0.47 1.50 0.02 1.52 0.72 2.24

2004-05 0.10 0.01 0.11 0.17 0.28 0.61 0.05 0.66 0.98 1.64

2005-06 0.63 0.01 0.64 0.13 0.77 3.63 0.05 3.67 0.75 4.43

2006-07 1.06 0.01 1.07 0.21 1.27 6.87 0.07 6.94 1.33 8.27

2007-08 1.33 0.02 1.35 0.22 1.57 9.70 0.13 9.83 1.60 11.43

2008-09 0.33 0.01 0.34 0.18 0.53 2.82 0.09 2.90 1.60 4.50

Source : ibid.

Percentage share of Fibre Exports to Overall

Exports

Percentage share of Fibre Exports to Textiles

ExportsYear

Table 3.14(B): Percentage Share of Fibre Exports in Overall Exports and Textiles Exports

(1994 - 2009)

210

( value in Rs. crore )

Cotton*Non-

cottonTotal Cotton*

Non-

cottonTotal Cotton*

Non-

cottonTotal

1 2 3 4 5 6 7 8 9 10

1994-95 2610 456 3066 3.16 0.55 3.71 10.2 1.78 11.98

(62.9) (86.1) (66.0)

1998-99 4556 1520 6076 3.26 1.09 4.35 12.02 4.01 16.02

(-22.2) (-16.2) (-17.9)

1999-00 5344 1664 7008 3.36 1.05 4.40 12.43 3.87 16.30

(17.3) (9.4) (15.3)

2000-01 6321 2571 8892 3.14 1.28 4.42 11.95 4.86 16.82

(18.3) (54.6) (26.9)

2001-02 5374 2057 7431 2.57 0.98 3.56 10.88 4.17 15.05

(-15.0) (-20.0) (-16.4)

2002-03 5923 2785 8708 2.32 1.09 3.41 10.32 4.85 15.17

(10.2) (35.4) (17.2)

2003-04 5998 2983 8981 2.04 1.02 3.06 9.68 4.83 14.51

(1.3) (7.5) (3.3)

2004-05 5642 3418 9060 1.50 0.91 2.41 8.77 5.31 14.08

(-5.9) (14.2) (0.8)

2005-06 6566 3467 10033 1.44 0.76 2.20 8.31 4.39 12.69

(16.4) (1.5) (10.7)

2006-07 7598 4351 11949 1.33 0.76 2.09 8.63 4.94 13.57

(15.7) (25.5) (19.1)

2007-08 7682 4995 12677 1.20 0.84 2.04 8.51 5.98 14.49

(1.1) (24.0) (9.4)

2008-09 6912 4526 11438 0.82 0.54 1.36 7.00 4.60 11.60

(-10.0) (-9.4) (-9.8)

Note : Figures given in parentheses indicate percentage change over the previous year.

Figures for cotton include data on sewing thread.

Source: ibid.

Table 3.15: Yarn Exports with Percentage Change and Percentage Share in Overall Exports and Total

Textiles Exports (1994 - 2009)

YearYarn Exports

Percentage share of Yarn

Exports in Overall Exports

Percentage share of Yarn

Exports in Total Textiles

Exports

211

CottonNon-

cottonTotal Cotton

Non-

cottonTotal Cotton

Non-

cottonTotal

1 2 3 4 5 6 7 8 9 10

1994-95 3211 1639 4850 3.88 1.98 5.87 12.55 6.41 18.96

(34.6) (4.6) (22.7)

1998-99 3730 3155 6885 2.67 2.26 4.93 9.84 8.32 18.16

(-14.1) (54.2) (7.4)

1999-00 4039 3604 7643 2.54 2.27 4.80 9.39 8.38 17.78

(8.3) (14.2) (11.0)

2000-01 4457 4959 9416 2.21 2.46 4.68 8.43 9.38 17.81

(10.3) (37.6) (23.2)

2001-02 4093 5341 9434 1.96 2.56 4.51 8.29 10.82 19.11

(-8.2) (7.7) (0.2)

2002-03 4685 6189 10874 1.84 2.43 4.26 8.16 10.79 18.95

(14.5) (15.9) (15.3)

2003-04 4390 7080 11470 1.50 2.41 3.91 7.09 11.43 18.52

(-6.3) (14.4) (5.5)

2004-05 4103 7437 11540 1.09 1.98 3.07 6.38 11.56 17.94

(-6.5) (5.0) (0.6)

2005-06 3742 7328 11070 0.82 1.61 2.43 4.74 9.27 14.01

(-8.8) (-1.5) (-4.1)

2006-07 4049 7788 11837 0.71 1.36 2.07 4.60 8.85 13.45

(8.2) (6.3) (6.9)

2007-08 4167 8471 12638 0.65 1.32 1.97 4.62 9.39 14.01

(2.9) (8.8) (6.8)2008-09 4446 11050 15496 0.53 1.32 1.84 4.51 11.20 15.71

(6.7) (30.4) (22.6)

Note : Figures given in parentheses indicate percentage change over the previous year.

Source: ibid.

Table 3.16: Fabrics Exports with Percentage Change and Percentage Share in Overall Exports and Total

Textiles Exports (1994 - 2009)

Year

Fabrics ExportsPercentage share of Fabrics

Exports in Overall Exports

Percentage share of Fabrics

Exports in Total Textiles

Exports

( value in Rs. crore )

212

CottonNon-

cottonTotal Cotton

Non-

cottonTotal Cotton

Non-

cottonTotal

1 2 3 4 5 6 7 8 9 10

1994-95 9768 4423 14191 11.82 5.35 17.17 38.18 17.29 55.47

(11.7) (52.4) (21.8)

1998-99 13110 5258 18368 9.38 3.76 13.14 34.58 13.87 48.45

(0.2) (-4.0) (-1.0)

1999-00 14221 6429 20650 8.94 4.04 12.98 33.08 14.95 48.03

(8.5) (22.3) (12.4)

2000-01 17784 7696 25480 8.83 3.82 12.65 33.63 14.55 48.19

(25.1) (19.7) (23.4)

2001-02 17482 6400 23882 8.36 3.06 11.43 35.40 12.96 48.37

(-1.7) (-16.8) (-6.3)

2002-03 21507 6264 27771 8.43 2.46 10.88 37.48 10.92 48.40

(23.0) (-2.1) (16.3)

2003-04 21758 6930 28688 7.42 2.36 9.78 35.13 11.19 46.31

(1.2) (10.6) (3.3)

2004-05 22483 7055 29538 5.99 1.88 7.87 34.94 10.97 45.91

(3.3) (1.8) (3.0)

2005-06 28634 9559 38193 6.27 2.09 8.37 36.23 12.10 48.33

(27.4) (35.5) (29.3)

2006-07 30833 9447 40280 5.39 1.65 7.04 35.02 10.73 45.76

(7.7) (-1.2) (5.5)

2007-08 29809 9219 39028 4.66 1.44 6.10 33.04 10.22 43.25

(-3.3) (-2.4) (-3.1)

2008-09 37599 12791 50390 4.48 1.52 6.00 38.11 12.97 51.08

(26.1) (38.8) (29.1)

Note: Figures given in parentheses indicate percentage change over the previous year.

Source: ibid.

Table 3.17: RMG Exports with Percentage Change and Percentage Share in Overall Exports and Total

Textiles Exports (1994 - 2009)

Year

RMGPercentage share of RMG

Exports in Overall Exports

Percentage share of RMG

Exports in Total Textiles

Exports

( value in Rs. crore )

213

CottonNon-

cottonTotal Cotton

Non-

cottonTotal Cotton

Non-

cottonTotal

1 2 3 4 5 6 7 8 9 10

1994-95 2915 416 3331 3.53 0.50 4.03 11.39 1.63 13.02

(27.1) (14.6) (25.4)

1998-99 2649 631 3280 1.90 0.45 2.35 7.00 1.65 8.65

(-44.1) (-25.9) (-41.4)

1999-00 3177 756 3933 2.00 0.47 2.47 7.39 1.76 9.15

(19.9) (19.8) (19.9)

2000-01 4208 1047 5255 2.09 0.52 2.61 7.96 1.98 9.94

(32.5) (38.5) (33.6)

2001-02 4245 992 5237 2.03 0.47 2.51 8.60 2.01 10.61

(0.9) (-5.3) (-0.4)

2002-03 4888 1257 6145 1.92 0.49 2.41 8.52 2.19 10.71

(15.1) (26.8) (17.3)

2003-04 5671 1797 7468 1.93 0.61 2.55 9.16 2.90 12.06

(16.0) (42.9) (21.5)

2004-05 6587 2283 8870 1.76 0.61 2.36 10.24 3.55 13.79

(16.2) (27.0) (18.8)

2005-06 7710 2830 10540 1.69 0.62 2.31 9.75 3.58 13.34

(17.0) (24.0) (18.8)

2006-07 7478 2936 10414 1.31 0.51 1.82 8.49 3.34 11.83

(-3.0) (3.8) (-1.2)

2007-08 6532 3042 9574 1.02 0.48 1.50 7.24 3.37 10.61

(-12.7) (3.6) (-8.1)

2008-09 6871 3951 10822 0.82 0.47 1.29 6.96 4.00 10.97

(5.2) (29.9) (13.0)

Note: Figures given in parentheses indicate percentage change over the previous year.

Source: ibid.

Table 3.18: Made-ups Exports with Percentage Change and Percentage Share in Overall Exports and

Total Textiles Exports (1998 - 2009)

Year

Made-upsPercentage share of Made-ups

Exports in Overall Exports

Percentage share of Made-ups

Exports in Total Textiles

Exports

( value in Rs. crore )

214

Raw

Cotton

Cotton

waste

Total

Cotton

Non-

CottonTotal

1 2 3 4 5 6 7 81998-99 379 4 383 1208 1591 3533 1783321999-00 1247 7 1254 1305 2559 4917 215529

(229.5) (39.0) (227.1) (8.1) (60.9) (39.2) (20.9)2000-01 1179 6 1185 1371 2555 5337 228307

(-5.5) (-16.3) (-5.5) (5.0) (-0.2) (8.5) (5.9)2001-02 2044 10 2054 1703 3757 7342 245200

(73.4) (67.0) (73.3) (24.2) (47.0) (37.6) (7.4)2002-03 1231 7 1238 2074 3312 7965 297206

(-39.8) (-34.9) (-39.7) (21.8) (-11.8) (8.5) (21.2)2003-04 1554 16 1570 2013 3583 9347 359108

(26.2) (165.7) (26.9) (-3.0) (8.2) (17.3) (20.8)2004-05 1118 18 1136 2019 3155 10182 501065

(-28.8) (5.0) (-27.7) (0.4) (-11.9) (8.9) (39.5)2005-06 688 16 704 2285 2989 12102 660409

(-38.5) (-9.1) (-38.0) (13.1) (-5.3) (18.9) (31.8)2006-07 643 20 663 2447 3110 12856 840506

(-6.6) (30.2) (-5.8) (7.1) (4.0) (6.2) (27.3)2007-08 895 17 912 2581 3493 13391 1012312

(39.2) (-14.3) (37.6) (5.5) (12.3) (4.2) (20.4)2008-09 1672 19 1691 2824 4515 16211 1374436

(86.8) (11.8) (85.4) (9.4) (29.3) (21.1) (35.8)

Figures given in parentheses indicate percentage change over the previous year.

Source: ibid.

Table 3.19(A): Fibre Imports, Total Imports, and Textiles Imports, excluding Coir and

Handicrafts, with Percentage Change (1998 - 2009)

( value in Rs. crore )

Year

Fibre ImportsTotal Textiles

Imports as

stated above

Overall

Imports

215

Raw

Cotton

Cotton

waste

Total

Cotton

Non-

CottonTotal

Raw

Cotton

Cotton

Waste

Total

Cotton

Non -

CottonTotal

1 2 3 4 5 6 7 8 9 10 11

1998-99 0.21 0.003 0.21 0.68 0.89 10.71 0.14 10.85 34.18 45.03

1999-00 0.58 0.003 0.58 0.61 1.19 25.36 0.14 25.50 26.55 52.05

2000-01 0.52 0.002 0.52 0.60 1.12 22.09 0.11 22.20 25.68 47.88

2001-02 0.83 0.004 0.84 0.69 1.53 27.84 0.13 27.97 23.20 51.17

2002-03 0.41 0.002 0.42 0.70 1.11 15.46 0.08 15.54 26.04 41.58

2003-04 0.43 0.005 0.44 0.56 1.00 16.62 0.17 16.80 21.53 38.33

2004-05 0.22 0.003 0.23 0.40 0.63 10.98 0.17 11.15 19.84 30.99

2005-06 0.10 0.002 0.11 0.35 0.45 5.69 0.13 5.81 18.88 24.70

2006-07 0.08 0.002 0.08 0.29 0.37 5.00 0.16 5.16 19.03 24.19

2007-08 0.09 0.002 0.09 0.25 0.35 6.68 0.13 6.81 19.27 26.09

2008-09 0.12 0.003 0.12 0.21 0.33 10.31 0.12 10.43 17.42 27.85

Source: ibid.

Table 3.19(B): Percentage Share of Fibre Imports in Overall Imports and Textiles Imports

(1998 - 2009)

Year

Percentage share of Fibre Imports in Overall ImportsPercentage share of Fibre Imports in Total Textiles

Imports

216

CottonNon-

cottonTotal Cotton

Non-

cottonTotal Cotton

Non-

cottonTotal

1 2 3 4 5 6 7 8 9 10

1998-99 21 443 464 0.01 0.25 0.26 0.59 12.54 13.14

1999-00 14 734 748 0.01 0.34 0.35 0.29 14.93 15.22

(-32.1) (65.7) (61.2)

2000-01 33 818 851 0.01 0.36 0.37 0.62 15.33 15.95

(131.4) (11.5) (13.8)

2001-02 36 1137 1173 0.01 0.46 0.48 0.49 15.49 15.98

(8.3) (39.0) (37.8)

2002-03 52 1451 1503 0.02 0.49 0.51 0.65 18.21 18.87

(45.9) (27.6) (28.1)

2003-04 33 1384 1417 0.01 0.39 0.39 0.35 14.81 15.16

(-36.7) (-4.6) (-5.7)

2004-05 41 1832 1873 0.01 0.37 0.37 0.40 17.99 18.39

(23.0) (32.4) (32.2)

2005-06 60 1960 2020 0.01 0.30 0.31 0.49 16.20 16.69

(47.6) (7.0) (7.9)

2006-07 108 2149 2257 0.01 0.26 0.27 0.84 16.71 17.56

(81.2) (9.6) (11.8)

2007-08 91 2179 2270 0.01 0.22 0.22 0.68 16.27 16.95

(-16.1) (1.4) (0.5)

2008-09 74 2598 2672 0.01 0.19 0.19 0.46 16.03 16.48

(-18.7) (19.2) (17.7)

Figures given in parentheses indicate percentage change over the previous year.

Source: ibid.

Table 3.20: Yarn Imports with Percentage Change and Percentage Share in Overall Imports and Total

Textiles Imports (1998 - 2009)

Year

Yarn ImportsPercentage share of Yarn

Imports in Overall Imports

Percentage share of Yarn

Imports in Total Textiles

Imports

( value in Rs. crore )

217

( value in Rs. crore)

CottonNon-

cottonTotal Cotton

Non-

cottonTotal Cotton

Non-

cottonTotal

1 2 3 4 5 6 7 8 9 10

1998-99 224 483 707 0.13 0.27 0.40 6.35 13.66 20.01

1999-00 93 576 669 0.04 0.27 0.31 1.90 11.70 13.60

(-58.4) (19.2) (-5.4)

2000-01 108 654 762 0.05 0.29 0.33 2.02 12.25 14.27

(15.7) (13.6) (13.9)

2001-02 197 841 1038 0.08 0.34 0.42 2.68 11.46 14.14

(82.3) (28.7) (36.3)

2002-03 373 1392 1765 0.13 0.47 0.59 4.68 17.48 22.16

(89.6) (65.4) (70.0)

2003-04 620 1816 2436 0.17 0.51 0.68 6.63 19.43 26.06

(66.3) (30.5) (38.0)

2004-05 839 2072 2911 0.17 0.41 0.58 8.24 20.34 28.59

(35.4) (14.1) (19.5)

2005-06 1176 2796 3972 0.18 0.42 0.60 9.72 23.10 32.82

(40.1) (35.0) (36.5)

2006-07 1333 2598 3931 0.16 0.31 0.47 10.37 20.21 30.58

(13.4) (-7.1) (-1.0)

2007-08 1193 2633 3826 0.12 0.26 0.38 8.91 19.66 28.57

(-10.5) (1.3) (-2.7)

2008-09 1136 2820 3956 0.08 0.21 0.29 7.00 17.40 24.40

(-4.8) (7.1) (3.4)

Figures given in parentheses indicate percentage variation over the previous year.

Source: ibid.

Table 3.21: Fabrics Imports with Percentage Change and Percentage Share in Overall Imports and Total

Textiles Imports (1998 - 2009)

Year

Fabrics ImportsPercentage share of Fabrics

Imports in Overall Imports

Percentage share of Fabrics

Imports in Total Textiles

Imports

218

CottonNon-

cottonTotal Cotton

Non-

cottonTotal Cotton

Non-

cottonTotal

1 2 3 4 5 6 7 8 9 10

1998-99 12 27 39 0.01 0.01 0.02 0.35 0.74 1.09

1999-00 30 40 70 0.01 0.02 0.03 0.61 0.81 1.42

(140.4) (52.8) (81.1)

2000-01 26 73 99 0.01 0.03 0.04 0.48 1.37 1.85

(-13.7) (82.7) (41.4)

2001-02 28 144 173 0.01 0.06 0.07 0.38 1.97 2.35

(9.1) (97.5) (74.4)

2002-03 51 65 116 0.02 0.02 0.04 0.64 0.81 1.46

(82.2) (-55.2) (-32.8)

2003-04 65 113 178 0.02 0.03 0.05 0.69 1.21 1.90

(26.1) (75.1) (53.4)

2004-05 44 106 150 0.01 0.02 0.03 0.43 1.04 1.47

(-32.5) (-6.4) (-15.9)

2005-06 91 161 252 0.01 0.02 0.04 0.75 1.33 2.08

(108.7) (51.6) (68.2)

2006-07 134 200 334 0.02 0.02 0.04 1.05 1.55 2.60

(47.6) (24.3) (32.7)

2007-08 199 255 454 0.02 0.03 0.04 1.49 1.90 3.39

(48.1) (27.7) (35.9)

2008-09 276 362 638 0.02 0.03 0.05 1.70 2.23 3.93

(38.7) (42.0) (40.5)

Figures given in parentheses indicate percentage change over the previous year.

Source: ibid.

Table 3.22: RMG Imports with Percentage Change and Percentage Share in Overall Imports and Total

Textiles Imports (1998 - 2009)

Year

RMGPercentage share of RMG

Imports in Overall Imports

Percentage share of RMG

Imports in Total Textiles

Imports

( value in Rs. crore )

219

( value in Rs. crore)

CottonNon-

cottonTotal Cotton

Non-

cottonTotal Cotton

Non-

cottonTotal

1 2 3 4 5 6 7 8 9 101998-99 19 119 138 0.01 0.07 0.08 0.54 3.37 3.91

1999-00 30 186 216 0.01 0.09 0.10 0.62 3.78 4.40

(57.9) (56.3) (56.4)

2000-01 49 303 352 0.02 0.13 0.15 0.93 5.68 6.60

(63.3) (62.9) (63.0)

2001-02 57 222 279 0.02 0.09 0.11 0.78 3.02 3.80

(15.4) (-26.7) (-20.8)

2002-03 83 192 275 0.03 0.06 0.09 1.04 2.42 3.45

(45.1) (-13.3) (-1.4)

2003-04 23 487 510 0.01 0.14 0.14 0.24 5.21 5.46

(-72.3) (153.2) (85.4)

2004-05 23 359 382 0.00 0.07 0.08 0.23 3.53 3.75

(1.3) (-26.3) (-25.1)

2005-06 35 439 474 0.01 0.07 0.07 0.29 3.62 3.92

(52.5) (22.1) (24.0)

2006-07 46 430 476 0.01 0.05 0.06 0.36 3.35 3.70

(30.3) (-1.9) (0.5)

2007-08 70 423 493 0.01 0.04 0.05 0.52 3.16 3.68

(52.5) (-1.7) (3.5)

2008-09 94 1020 1114 0.01 0.07 0.08 0.58 6.29 6.87

(34.3) (141.1) (126.0)

Figures given in parentheses indicate percentage change over the previous year.

Source: ibid.

Table 3.23: Made-ups Imports with Percentage Change and Percentage Share in Overall Imports

and Total Textiles Imports (1998 - 2009)

Year

Made-ups Imports

Percentage share of Made-

ups Imports in Overall

Imports

Percentage share of Made-

ups Imports in Total Textiles

Imports

193

YearArea (lakh

hectares)

%

Change

Production

(lakh bales of

170 kgs.

Each)*

%

Change

Yield (kgs

/Hect)

%

Change

1 2 3 4 5 6 7

1999-00 87.31 -5.99 156 -5.45 304 0.66

2000-01 85.76 -1.78 140 -10.26 278 -8.55

2001-02 87.30 1.80 158 12.86 308 10.79

2002-03 76.67 -12.18 136 -13.92 302 -1.95

2003-04 76.30 -0.48 179 31.62 399 32.12

2004-05 87.86 15.15 243 35.75 470 17.79

2005-06 86.77 -1.24 244 0.41 478 1.70

2006-07 91.44 5.38 280 14.75 521 9.00

2007-08 94.39 3.23 315 12.50 567 8.83

2008-09 94.10 -0.30 290 -7.94 524 -7.58

2009-10 103.30 9.78 295 1.72 486 -7.25

CAGR % (1999-2008) 0.80 7.10 6.30

Notes : *CAB (Cotton Advisory Board) estimates P : Provisional

Source : Cotton Corporation of India Website : www.cotcorp.gov.in

Table 3.1: All India Area, Production and Yield of Cotton (1999 - 2010)

Percentage change over the previous year is presented annually.

194

State 1999-2000 2001-02 2003-04 2005-06 2007-08 2008-09*CAGR (%)

(1999-2009)

1 2 3 4 5 6 7 8

Punjab 4.75 6.00 4.52 5.57 6.04 5.37 1.40

Haryana 5.46 6.10 5.26 5.83 4.83 4.55 -2.00

Rajasthan 5.83 3.47 3.44 4.71 3.39 2.23 -10.10

North Total 16.04 15.57 13.22 16.11 14.26 12.15 -3.00

Gujarat 15.39 16.87 16.47 19.06 24.22 24.17 5.10

Maharashtra 32.54 29.80 27.66 28.75 31.94 31.33 -0.40

Madhya Pradesh 5.25 6.23 5.91 6.20 6.30 6.55 2.50

Central Total 53.18 52.90 50.04 54.01 62.46 62.05 1.70

Andhra Pradesh 10.39 10.02 8.37 10.33 11.38 13.45 2.90

Karnataka 5.40 5.91 3.13 4.13 4.02 3.90 -3.60

Tamil Nadu 1.85 2.00 1.03 1.40 1.19 1.20 -4.70

South Total 17.64 17.93 12.53 15.86 16.59 18.55 0.60

Others 0.45 0.90 0.51 0.79 1.08 0.98 9.00

Grand Total 87.31 87.30 76.30 86.77 94.39 93.73 0.80

Note : 1. Compound annual growth rate (CAGR) is worked out between the two extreme

periods (1999-2009).

2. *: estimated

Source : ibid.

Table 3.2 : State-wise Area of Cotton Cultivation (1999 - 2009)

(area in lakh hectares)

195

State 1999-2000 2001-02 2003-04 2005-06 2007-08 2008-09 2009-10CAGR (%)

(1999-2010)

1 2 3 4 5 6 7 8 9

Punjab 7.85 9.25 10.35 21.00 22.00 17.50 14.30 6.2

Haryana 10.65 5.50 11.50 14.00 16.00 14.00 14.80 3.3

Rajasthan 13.00 7.00 9.15 11.00 9.00 7.50 11.00 -1.7

North Total 31.50 21.75 31.00 46.00 47.00 39.00 40.00 2.4

Gujarat 27.50 32.50 50.00 89.00 112.00 90.00 98.00 13.6

Maharashtra 38.00 34.25 31.00 36.00 62.00 62.00 63.00 5.2

Madhya Pradesh 15.50 20.00 19.65 18.00 21.00 18.00 15.00 -0.3

Central Total 81.00 86.75 100.65 143.00 195.00 170.00 176.00 8.1

Andhra Pradesh 22.50 26.75 27.40 30.00 46.00 53.00 52.00 8.7

Karnataka 7.00 7.00 4.20 6.50 8.00 9.00 9.00 2.5

Tamil Nadu 5.50 5.00 3.75 5.50 5.00 5.00 5.00 -0.9

South Total 35.00 38.75 35.35 42.00 59.00 67.00 66.00 6.5

Others 1.50 0.75 1.00 1.00 2.00 2.00 1.00 -4.0

Total 149.00 148.00 168.00 232.00 303.00 278.00 293.80 7.0

Loose lint 7.00 10.00 11.00 9.00 12.00 12.00 1.20 -16.2

Grand Total 156.00 158.00 179.00 241.00 315.00 290.00 295.00 6.6

Notes : 1. CAGR is worked out between the two extreme periods (1999-2010).

2. Relationship between state-wise production data for cotton for nine states for 1999-00 and

2009-10 as given in columns 2 & 8 has been processed to arrive at the following coefficients.

---- Karl Pearson's correlation coefficient (r): 0.8429.

---- Spearman's rank order correlation coefficient (rho):0.9259

Both the coefficients indicate very high degree of correlation between production data of the

two years, which means ranking of the states broadly remains the same in both the years.

Changes are as follows: Gujarat becomes 1, with Maharashtra as 2, reversing the positions;

Haryana becomes 5 from 6, Punjab 6 from 7, and Rajasthan 7 from 5.

Source : ibid.

Table 3.3: State-wise Production of Cotton (1999 - 2010)

(production in lakh bales of 170 kgs each)

196

State/Year 1999-2000 2002-03 2005-06 2007-08 2008-09*CAGR (%)

(1999-2009)

1 2 3 4 5 6 7

Punjab 281 284 610 619 554 7.80

Haryana 332 287 379 563 523 5.20

Rajasthan 379 220 397 451 572 4.70

North total 334 267 464 560 546 5.60

Gujarat 304 317 794 786 633 8.50

Maharashtra 199 158 213 330 336 6.00

Madhya Pradesh 502 561 494 567 467 -0.80

Central total 259 254 450 531 466 6.70

Andhra Pradesh 368 418 527 687 670 6.90

Karnataka 220 216 268 338 392 6.60

Tamil Nadu 505 600 668 714 708 3.80

South Total 337 368 472 605 614 6.90

Others 567 321 215 315 347 -5.30

Grand Total 304 302 478 567 524 6.30

Note : CAGR has been worked out between the two extreme periods (1999-2009). * Estimated

Source : ibid.

(Yield in kgs per hectare)

Table 3.4: State-wise Yield of Cotton (1999 - 2009)

197

Cotton year from

October to September1999-2000 2002-03 2005-06 2007-08 2008-09(P)

Opening stock 36.50 40.00 72.00 47.50 43.00

Crop size 156.00 136.00 244.00 315.00 290.00

Imports 22.01 17.67 4.00 6.50 7.00

Total Availability 214.51 193.67 320.00 369.00 340.00

Mill consumption 150.60 142.42 182.00 203.00 195.00

Small Mill consumption 8.37 11.63 20.00 23.00 20.00

Non-Mill consumption 14.39 14.78 15.00 15.00 15.00

Total consumption 173.36 168.83 217.00 241.00 230.00

Export 0.65 0.84 47.00 85.00 50.00

Total disappearance 174.01 169.67 264.00 326.00 280.00

Carry forward 40.50 24.00 56.00 43.00 60.00

Note: P = Provisional

Source: ibid.

Table 3.5: Balance Sheet of Cotton (1999 - 2009)

(Quantity in lakh bales of 170 kgs)

SUPPLY

DEMAND

197

198

Qty % Share Qty % Share Qty % Share

1 2 3 4 5 6 7 8

1999-2000 18989 49 5913 15 13724 36 38626

2000-01 19627 49 6348 16 14358 36 40333

2001-02 19769 48 6288 15 15334 37 41390

2002-03 19296 47 5877 14 16289 39 41462

2003-04 18849 44 6078 14 18007 42 42933

2004-05 20578 46 6025 13 18388 41 44991

2005-06 23873 49 6299 13 18655 38 48826

2006-07 26225 50 6882 13 19582 37 52689

2007-08 27205 49 6888 12 21183 38 55276

2007-08 (Apr-Dec) 20354 50 5119 13 15439 38 40912

2008-09 (Apr-Dec) 20214 50 5246 13 15018 37 40478

CAGR(%) (1999-2008) 4.6 1.9 5.6 4.6

Note : Percentage Share of each category in relation to total quantity is worked out annually. CAGR has been worked out for the two extreme periods (1999-2008).

Website: www.txcindia.comSource : Official Indian Textile Statistics 2008, Ministry of Textiles, Government of India

Table 3.6: Variety-wise Production of Cloth (1999 - 2009)

( Quantity in million square meters )

YearCotton Cloth Blended Cloth

100% Non-cotton

Cloth Total Qty

199

Qty % Share Qty % Share Qty % Share Qty % Share

1 2 3 4 5 6 7 8 9 10 11

1999-2000 1714 (-4.0) 4 7353 (8.3) 19 23187 (12.1) 60 6373 (1.6) 16 38626 8.7

2000-01 1670 (-2.6) 4 7472 (1.6) 19 24503 (5.7) 61 6688 (4.9) 17 40333 4.4

2001-02 1546 (-7.4) 4 7585 (1.5) 18 25192 (2.8) 61 7068 (5.7) 17 41390 2.6

2002-03 1496 (-3.2) 4 5989 (-21.0) 14 26109 (3.6) 63 7868 (11.3) 19 41462 0.2

2003-04 1433 (-4.2) 3 5581 (-6.8) 13 28045 (7.4) 65 7874 (-) 18 42933 3.5

2004-05 1493 (4.2) 3 5705 (2.2) 13 28704 (2.4) 64 9089 (15.4) 20 44991 4.8

2005-06 1673 (12.1) 3 6108 (7.1) 13 30627 (6.7) 63 10418 (14.6) 21 48826 8.5

2006-07 1746 (4.4) 3 6535 (7.0) 12 32904 (7.4) 62 11504 (10.4) 22 52689 7.9

2007-08 1781 (2.0) 3 6947 (6.3) 13 34744 (5.6) 63 11804 (2.6) 21 55276 4.9

2008-09 1796 (0.8) 3.3 6677 (-3.9) 12.3 33648 (-3.2) 62.1 12077 (2.3) 22.3 54198 -2.0

CAGR(%)

(1999-2009) 0.5 -1.1 4.2 7.4 3.8

Notes : 1. CAGR has been worked out for the two extreme periods (1999-2009).

2. Figures in parentheses indicate percentage change over the previous year.

Source : ibid.

Table 3.7(A): Sector-wise Production of Cloth (1999 - 2009)

( Quantity in million square meters )

YearMill Sector Handloom Sector Powerloom Sector Hosiery Sector

Total Qty%

Change

200

Unit World India

India as

% of

World

India's

Rank in

the World

Country

with 1st

rank

2 3 4 5 6 7

1. Spindles (Cotton system) Mn. No. 190.87 37.42 19.60 2 China

2. Spindles (Wool) Mn. No. 14.98 1.04 6.94 3 China

3. Spindles (Cotton & Wool) Mn. No. 205.85 38.46 18.68 2 China

4. Rotors Mn. No. 8.39 0.52 6.20 5 Russia

1. Shuttle Looms Mn. No. 4.34 1.98 45.62 1 India

2. Shuttleless Looms Mn. No. 0.88 0.05 5.68 4 China

3. Handlooms Mn. No. 4.6 3.9 84.78 1 India

9.82 5.93 60.39 1 India

1. Raw Cotton 2005-06) (Oct.-Sept.) Mn. Kg. 24756 4148 16.76 3 China

2. Cellulosic fibre/yarn (2005) Mn. Kg. 2529 295 11.66 2 China

3. Synthetic fibre/yarn (2005) Mn. Kg. 31762 1850 5.82 5 China

4. Raw Wool (Greasy) (2005) Mn. Kg. 2164 45 2.08 7 Australia

5. Raw Silk (2004) Mn. Kg. 126 17 13.49 2 China

6. Jute (2005-06) Mn. Kg. 2826 1575 55.73 1 India

64163 7930 12.36

Yarn - (2005)

Cotton Yarn (Est.) Mn. Kg. 24994 2460 9.84 2 China

Fabrics - (2005)

Cotton fabrics(Est.) Mn. Kg. 14011 2071 14.78 3 China

Total fibre - 2005 (including jute ) (P) Kg. 9.28 6.42 ---- ---- ----

Total textiles & colthing exports Bn. US $ 479.54 17.08 3.56 6 EU (25)

A. Spinning

1. Spindles Mn. No. 53.26 9.77 18.34 2 China

2. Rootors Mn. No. 2.79 0.13 4.66 5 China

B. Draw texturing '000 No. 1952.71 185.6 9.50 2 China

C. Weaving

1. Shuttleless Looms '000 No. 519.17 12.00 2.31 7 China

2. Shuttle Looms '000 No. 102.72 3.60 3.50 2 China

D. Knitting '000 No. 137.04 6.98 5.09 4 China

Note: P = Provisional. Est. = Estimated.

Source : WTO, ITMF, ICAC, JMDC, ASFI, Fiber Organon, as published in Compendium of International Textile Statistics (2009), Textile Commissioner, Ministry of Textiles, GOI, Mumbai.

Table 3.7(B): India's Position in World Textile Economy (2005)

(Summarised position)

Particulars

Total

Fibre /Yarn

World Trade - 2005

Per Capita Fibre Consumption

Machinery shipped during 1996-2005

1

Total of looms

Installed Capacity

Production (P)

B. Weaving - 2005

A. Spinning - 2005