Exports India

7/31/2019 Exports India

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Scenario of Garment Export Industry

in India

Presented by:

Shrishti DohareShruti SethSwati SehgalVandana SainYesha Bohra


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Exports-India

India exports were worth 22443 Million USD in July of 2012

Exports amount to 22% of Indias GDP.

Gems and jewelry constitute the single largest export item, accountingfor 16 percent of exports.

India is also leading exporter of textile goods, engineering goods,

chemicals, leather manufactures and services.

Indias main export partners are European Union, United States,

United Arab Emirates and China.

Source :http://www.tradingeconomics.com/india/exports
http://www.tradingeconomics.com/india/exportshttp://www.tradingeconomics.com/india/exports


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Source :http://www.tradingeconomics.com/india/exports
http://www.tradingeconomics.com/india/exportshttp://www.tradingeconomics.com/india/exports


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Current scenarioIndia is the sixth largest exporter of readymade garments with 2.6 %

market share.

The apparel sector alone contributes to 8% of total exports of India.

For the entire textiles sector, the government has fixed a target of $40

billion for the current fiscal. In 201112, the countrys textiles exports

stood at $32.31 billion.

In the first two months of the current fiscal, garments exports jumped

30% to USD 2.3 billion year-on- year.http://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-
http://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.htmlhttp://www.moneycontrol.com/news/economy/govt-setsgarment-export-targetusd-14bn-for-fy12_564860.html


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Key Buyers

United States Of America

European Union

Canada

**USA & EU together account for around 65 per cent of Indias apparel exports.

Source: AEPC


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Competitors

Ranked sixth

China

EU

Hong Kong

Turkey

Bangladesh.

With exports of US$ 18 bn, India is likely to fall behind Vietnam,

Indonesia and Mexico and rank ninth in the world.


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New Market

After the demand slowdown in the country's traditional markets -

the US and Europe, exporters started exploring new buyers in Latin

America, Africa and Middle East countries.

The market diversification has yielded positive results.

Garment exports have increased from USD 2.7 billion in 2009-10 to

USD 3.15 billion in 2011-12Source:http://www.moneycontrol.com/news/business

/garment-exports-to-non-traditional-markets


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Export Scenario-Still Grim

India's apparel exports stood at $1 bn, dropped 16.7% in July 2012-13

against same period last fiscal.

India's apparel exports in April-July 2012-13 stood at $4.2 bn, against $4.9

bn same period last fiscal.

Apparel imports of the US stood at $35.9 bn, declining .05% in January-

June 2012 as against the same period last calendar.

Source :http://economictimes.indiatimes.com


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India's performance in that market fell 9.8% and reached $1.7bn in January-June 2012 against $1.9 bn in January-June 2011.

EU's apparel exports too fell during the period, declining 13%

in January-June 2012 over same period last calendar.

EU's exports stood at $39.1 bn in first six months of this

calendar.

Source :http://economictimes.indiatimes.com


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Export Scenario-Still Grim

Indian textile industry hasnt reaped the full benefits of the sustained

fall in rupee against the dollar

Barring China, all others in the region are also passing through acritical phase, with their exports dwindling, but not definitely to the

extent that India suffered.

Textile Ministry has so far not been able to formulate a special policy

to meet the export challenges faced by Indian exporters


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Reason for downfall

EU and the US, the worst affected nations in the current debt crisis

Western buyers preferring products from suppliers in close

proximity to the EU and the USTextile mills were caught off-guard by a fall in local yarn prices

after they had bought their main raw material, cotton, at high

prices.

They could not sell yarn locally at a profit nor could they ship out

products due to poor demand as well as export restrictions,

resulting in huge losses.


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Measures

Restructuring of loans as well as interest subsidy to the garments

and knit-wear sectors grappling with the economic slowdown.

Extending many export promotion schemes for readymade garment

sector viz two per cent inter-subvention, two per cent Focus Market

Linked scheme to USA and European Union and enlargement of

countries under FMS/FPS.


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..cont. Restrictions on exports of cotton and cotton yarn which lowered the rawmaterial prices.

Increasing the eligible limit of Export Credit Refinance (ECR) facility

from 15 percent of the outstanding export credit eligible for refinance to

50 percent.

Focusing on Free Trade Agreement (FTA) as apparel industry will gain

by enlarging bi-lateral trade and bringing stability in the region


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Free Trade Agreement

On Aug 2012,India Signed a Free Trade Agreement with

EU.

Boost exports which have already declined by 48 per cent

in the first two months of the current fiscal.

EU imposes an import duty of 9.6 per cent per garmentand five per cent on other textile items from India which

will be abolished.


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.cont .

AEPC signs MoU with Israel to boost apparel trade.

To target the Middle East Market Apparel Market,Apparel Export Promotion Council organized a BuyerSeller Meet in Tel Aviv, Israel from 5 6 September2012.

The MoU is aimed at enhancing trade and economicrelation by expanding business and cooperation in the

sphere of clothing & fashion industries,


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India Market Days

Project approved by Ministry of Textiles and is funded under

the Market Access Initiative (MAI) Scheme of Ministry of

Commerce & Industry.

Inviting overseas buyers and buying agents.

Market Days is one of the endeavors for AEPCs export

promotion initiatives for the year 2012-13

Apparel exporters will generate good business deals with

buyers from the continent countries.


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Apparel House, Gurgaon

The event will help the garment exporters find the right

partners for their business.

The last India Market Days event (July 2012) generated

the revenue of 58 lacs.


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Current facts

Indias apparel exports to Japan have already jumpedsubstantially.The textiles ministry hopes to ride free trade deals

with Japan to target $50 billion in apparel exportsover the next three years from $18 billion targeted for2012-13.

Indias share of the $31.1 billion Japanese apparelimports worth is only 0.9 per cent at present.AEPC signs MoU with Israel to boost apparel trade

aimed at enhancing trade and economic relation.


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The government has revised upwards the garmentexports target to $18 billion from $17 billion for2012 13 fiscal.

For the apparel sector, the market linked focusproduct scheme was extended till the end of thecurrent fiscal for exports to the US and theEuropean Union.


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The US and Europe together account for over 65 percent of the countrys total textiles exports.

For the entire textiles sector, the government has fixed atarget of $40 billion for the current fiscal. In 2011 12,the countrys textiles exports stood at $32.31 billion.

Continuation of the Technology Up gradation FundScheme (TUFS) with an allocation of Rs. 15,886 crore for

the entire 12th Plan (201217).


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References

http://economictimes.indiatimes.com www.moneycontrol.com/news/business/garm

ent-exports-to-non-traditional-markets . http://www.tradingeconomics.com/india/exp

orts
http://economictimes.indiatimes.com/http://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.tradingeconomics.com/india/exportshttp://www.tradingeconomics.com/india/exportshttp://www.tradingeconomics.com/india/exportshttp://www.tradingeconomics.com/india/exportshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://www.moneycontrol.com/news/business/garment-exports-to-non-traditional-marketshttp://economictimes.indiatimes.com/http://economictimes.indiatimes.com/


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Exports India