Post COVID 19 Scenario: Making India a Manufacturing Hub

Post COVID 19 Scenario:Making India a Manufacturing Hub of Textile & Apparel

21st June, 2020

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Contents

• Present Opportunities

• Disadvantages / Challenges Faced by the Textile & Apparel Industry

• Interventions Suggested

• Expected Outcomes

• Annexure

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Present Opportunities

• Importance of Indian Textile Industry

• 2nd largest employer after agriculture

• 10.5 crore people Employed Directly and Indirectly

• 70 jobs created for every Rs. 1 Crore investment in garments, compared to 12 jobs created on an average in other industries

• Global Textile & Apparel trade is large & growing and provides opportunity for India

• Global textile and apparel trade is worth US$ 850 bn and growing at CAGR of 3.7% since 2010

• India has only 4% share of global trade, with exports of US$ 37 bn

• Huge opportunity for India to double its share in next 5 years and take share of China (35%)

• In present environment global buyers are looking for alternative sourcing destination to China

• India can grab this opportunity by creating competitive advantage for both investment and sourcing

Data Source: Ministry of Textiles, UN Comtrade and Wazir Analysis on Published Data

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Present Opportunities: High Future Potential Sub-Sectors

MMF Textiles & GarmentsTechnical TextilesGarments & Home Textiles

2019 CAGR 2025 (P)

India’s Exports (MMF Garments)

3.5 20% 10.5

Values in US$ bn

Key CategoriesKey CategoriesKey Categories

• Sportswear• Activewear• Outdoor Clothing• Other Specialty Garments• Winter Garments• Men’s and Women’s wear

• Medical Textiles• Protective Textiles• Geo Textiles• Composites• Agro Textiles

• Knitted Tops and Bottoms• Woven Tops• Women’s Dresses• Men’s Innerwear• Home Textiles

2019 CAGR 2025 (P)

India’sMarket

20 15% 45

India’s Exports

2 15% 4.5

2019 CAGR 2025 (P)

India’s Exports

Garments 16 13% 34

Home Textiles 5.4 10% 10

India’s Market

Garments 78 10% 138

Home Textiles 8 10% 14

Data Source: UN Comtrade and Wazir Analysis on Published Data

Global Trade: US$ 193 billion Global Market: US$ 183 billion Global Trade: US$ 538 billion

*MMF : Man Made Fibres

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Key Disadvantages / Challenges of Indian Textile & Apparel Industry

1. Free Trade Access to low cost competitors to major markets like US and EU

2. Lack of scale & integrated world class manufacturing for processed fabrics and garments

3. Limited technical knowhow and research & development institutions of world scale

4. Limited FDI and machinery manufacturing in India

5. Choking of the MMF sector – antidumping duties and GST inversion

6. High input cost of power, finance and logistics affecting cost competitiveness

7. Low productivity levels

8. Longer lead times due to infrastructure bottlenecks and delay at ports

9. Export of embedded taxes, duties and levies for textile value chain, except garments & made ups

where it is refunded

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Illustrative Cost Competitive Disadvantage of India

Parameters India Bangladesh Vietnam China

Fabric Cost - Rs/ Mtr 150 138* 138* 135

Productivity % 50% 65% 70% 75%

Manpower Cost - Rs /Month 14,500 11,300 16,200 42,350

Man to Machine Ratio (MMR) 1.9 2 1.9 1.6

Overheads 10% 10% 10% 5%

Other Costs 6.7% 6% 6.2% 5.5%

Import Duty to EU 9.6% 0% 9.6%** 12%

Cost Parameters India Bangladesh Vietnam China Fabric Cost (1.5 mtrs / pc consumption) 225 203 203 203Trims 35 35 35 35Manpower Cost 92 58 73 151Overheads 45 45 45 23Others (Rejections, Utility, Rent & Logistics) 28 22 24 24Total Cost - Rs/Pc 425 362 379 435Import duty to EU (@CIF value Rs 450) 43 0 43 54Total Cost including Import Duty –Rs/pc 468 362 422 489% Difference to India -23% -10% +4%

Key Areas of Difference in Unit Values

Manufacturing Cost for Shirt - Rs/ Pc

Higher Scale of China

Systems & Skills

Wage Rates

Systems & Efficiency

Higher Scale of China

Reasons for Difference

*Bangladesh & Vietnam Procure Fabric from China

India is 10-20% costlier compared to Bangladesh & Vietnam

China is competitive due to large scale and high productivity levels despite high wage costs

Cost of logistics, power etc.

Source : Wazir Analysis Based on Inputs from Industry

** EU- Vietnam FTA is concluded but yet to take effect

Duty advantage in EU

Interventions Suggested

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Target Action Points to Become A Global Textile Champion

1. Making Indian Textile industry globally competitive & double exports value by 2025

2. Diversifying Indian product basket by scaling up MMF & Technical Textiles

3. Maximizing conversion of cotton in downstream value chain

4. Make India a preferred regional hub of textiles for Bangladesh, Vietnam & Sri Lanka

5. Branding Indian Textiles as a sustainable manufacturer

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1. Establish sectoral PTA with USA, UK & EU• Preferential trade agreement in identified textile, apparel and home textiles products• This is right time to push for PTA, as global buyers are looking to diversify from China

2. Incentives for product diversification in top 40 HS Lines of apparel & home textiles traded globally and top 10 technical textiles HS lines. Incentives for the respective value chain of identified categories should also be given.• 10% on FOB reimbursement award on achieving 50% additional turnover• Yearly FOB reimbursement award for subsequent 5 years of achieving incremental turnover

3. Coastal mega investment parks and cluster upgradation: plug and play facility, dormitory and ETP’s• Major land clusters and existing industrial zones identified for developing mega textile parks• Key zones in states like Gujarat, Maharashtra, Andhra Pradesh, Telangana, Orissa and MP• Invite FDI in these zones from identified global companies

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4. Textile Fund to support new investments• Proposed Rs. 40,000 crore textile fund to encourage investment in identified sectors and growth of

industry• This fund will help in attracting investments worth Rs 2.5 lac crore and create up to 1.5 crore jobs

in the entire textile value chain• Further, additional market of Rs 5 lac crore will be generated which will compensate initial funding

through income tax, GST and foreign exchange

5. Measures to make Indian cotton prices competitive for the value chain• Launch Global Cotton Contract on MCX• Introduction of Direct Benefit Transfer to Cotton Farmers (after ensuring all digital systems are in

place to ensure smooth transfer mechanism)

6. Anti-dumping duty on some of the intermediates of MMF is already removed. But it needs to be removed from all other MMF fibres also. GST inversion issue pending at the GST Council. Needs to be resolved

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7. Make India a preferred regional hub of textiles for Bangladesh, Vietnam & Sri Lanka

• Measures to reduce transit times

• Quick roll out of RoDTEP (Remission of Duties & Taxes on Exported Products) scheme

Textile Categories

Total Imports of Bangladesh

India Exports to Bangladesh

India’s share %

Fibre 2.3 0.7 33%

Yarn 2.6 0.9 34%

Fabric 7.6 0.7 9%

Total Textiles 12.4 2.3 19%

Total Projected Imports of Bangladesh

Target IndiaExports to Bangladesh

Target - India’s share %

8 3 40%

5 2 40%

12 5 40%

25 10 40%

2018-19 2025-26 (Projected)

India can target to increase textile exports to Bangladesh from current US$2.3 bn to US$ 10 bn by 2025

US$ Bn

Source: DGCIS , UN Comtrade, Wazir Analysis

Bangladesh Illustrative US$ Bn

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8. Measures to improve cost competitiveness

• Power cost – remove cross subsidy burden on industry

• Finance – Reduce interest rates by 3%

• Logistics - Committed clearance of shipment in 24 hours as prevalent in Bangladesh & Sri Lanka

• Reimbursement of embedded taxes for textiles – Include entire textile value chain as part of RoSCTL (Rebate of State & Centre Taxes & Levies Scheme), in addition to garments and made ups where it is already included, till RoDTEP scheme is instituted

9. Create branding of Indian textiles as a sustainable manufacturer

• Incentivize investments in energy and water efficient manufacturing systems

• Compliant factories

• Leverage strength in organic cotton and recycled fibre capacities

• Brand campaign to establish India as a sustainable textile and apparel supplier

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Expected Outcomes

1. Addition of US$ 120 bn Market Value by 2025 in Identified Sectors

2. Additional investment of US$ 80 bn by 2025

3. Additional employment of 3 Cr people by 2025

Annexure

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Top Imported Apparel & Home Textile (HT) Categories of USA and UK

CategoryImports(2019)

India’s Exports to USA

India’s Share

1.Knitted pullovers of cotton

7.7 0.5 6.5%

2.Knitted pullovers of manmade fibres

6.3 0.03 0.5%

3.Men’s Woven Trousers of Cotton

5.2 0.1 2%

4.Women’s Woven Trousers of Cotton

4.5 0.1 2%

5.Knitted T-Shirts of Cotton

4.4 0.3 7%

Others 56.6 3.1 5%

Total 84.7 4.1 5%

USA’s Apparel & HT Imports UK’s Apparel & HT Imports

CategoryImports(2019)

India’s Exports to UK

India’s Share

1.Knitted T-Shirts of Cotton

2.9 0.3 10%

2.Knitted Pullovers of manmade fibres

2.2 0.02 1%

3.Knitted pullovers of cotton

2.1 0.07 3%

4.Men’s Woven Trousers of Cotton

1.8 0.06 3%

5.Women’s Woven Trousers of Cotton

1.7 0.05 3%

Others 12.3 0.7 6%

Total 23.0 1.2 5%

Values in US$ Billion

Data Source: OTEXA, Eurostat

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Top Imported Apparel & Home Textile Categories of EU

S.No. CategoryImports(2019)

India’s Exports to EU India’s Share

1. Knitted T-Shirts of cotton 14.5 0.8 5.7%

2.Women’s knitted pullovers and cardigans ofmanmade fibres

8.0 0.03 0.4%

3. Men’s Jeans 6.0 0.04 0.6%

4. Knitted T-Shirts of wool 5.2 0.1 1.6%

5.Women’s knitted pullovers and cardigans ofcotton

5.0 0.1 2.2%

Others 157.1 4.5 2.9%

Total 195.8 5.6 2.9%

Values in US$ Billion

Data Source: Eurostat

EU’s Apparel & HT Imports

Top Apparel & Home Textiles Traded Categories

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Top 40 Traded Apparel & Home Textiles Categories and India’s Share

S.No HS Code Description Global trade India's Exports India's share

1 610910 T-shirts of cotton 32,142 1,781 5.5%

2 620342 Trousers bib & brace overalls breeches & shorts of cotton for men's & boys' 27,250 441 1.6%

3 611030 Jerseys of man-made fibres 26,817 72 0.3%

4 611020 Jerseys of cotton 23,864 174 0.7%

5 620462 Trousers, bib and brace overalls, breeches and shorts of cotton 22,933 199 0.9%

6 610990 T-shirt etc. of textile material other than cotton 16,914 672 4.0%

7 620520 Men's or boys' shirts of cotton 11,786 788 6.7%

8 621210 Brassieres 11,468 107 0.9%

9 620293 Women's, girls anoraks etc. of manmade fibres, woven 10,426 2 0.02%

10 620193 Men's, boys anoraks etc., of manmade fibres, woven 10,316 5 0.05%

11 620443 Dresses of synthetic fibres 8,085 566 7.0%

12 620343 Trousers, bib & brace, overalls, breeches & shorts of synthetic fibres, men's or boys' 7,932 89 1.1%

13 610463 Trousers, bib & brace overalls, breeches and shorts of synthetic fibres 7,830 18 0.2%

14 620640 Blouses, shirts etc. of man-made fibres 7,759 577 7.4%

15 610462 Trousers, bibs, overalls, shorts of cotton 7,600 108 1.4%

16 630260 Kitchen or toilet linen of cotton terry towelling 6,981 1,055 15.1%

17 620463 Trousers, bib and brace overalls, breeches and shorts of synthetic fibres 6,744 129 1.9%

18 611120 Babies 'garments etc. of cotton 6,599 646 9.8%

19 610510 Men's/boys' shirts of cotton 5,962 398 6.7%

20 611595 Hosiery and footwear; without applied soles, of cotton, knitted or crocheted 5,673 28 0.5%

Values of 2018 , In US$ Million

Data Source: UN Comtrade

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Top 40 Traded Apparel & Home Textiles Categories and India’s Share

S.No HS Code Description Global trade India's Exports India's share

21 621143 Track suits and other garments.; Women's or girls', of man-made fibres, woven 4,967 600 12.10%

22 610443 Dresses of synthetic fibres 4,930 96 1.90%

23 620213 Overcoats, raincoats, car coats, capes, cloaks and similar articles of man made fibres 4,834 3 0.10%

24 610342 Trousers, shorts etc. of cotton 4,565 123 2.70%

25 611011 Jerseys, pullovers, cardigans etc. of wool 4,537 47 1.00%

26 620433 Jackets of synthetic fibres 4,413 32 0.70%

27 620630 Blouses, shirts & shirts-blouses of cotton 4,371 565 12.90%

28 610711 Underpants & briefs of cotton 4,328 204 4.70%

29 611596 Hosiery and footwear; without applied soles, of synthetic fibres, knitted or crocheted 4,321 24 0.60%

30 621040 Men's, boys garments, made up of impregnated fabric 4,320 23 0.50%

31 620432 Jackets of cotton 4,072 44 1.10%

32 611241 Women's/girls‘ swimwear of synthetic fibres 3,985 0.5 0.01%

33 620469 Trousers, bib and brace overalls, breeches and shorts of other textile materials 3,921 104 2.70%

34 610343 Trousers, shorts etc. of synthetic fibres 3,854 45 1.20%

35 620333 Jackets & blazers of synthetic fibres 3,842 33 0.90%

36 630140 Blankets and rugs of synthetic fibres 3,780 32 0.80%

37 630392 Woven curtains and blinds of synthetic fibres 3,771 8 0.20%

38 630231 Bed linen of solid fabric 3,733 286 7.70%

39 621050 Personal protective grants for women's & girl's 3,707 0.3 0.01%

40 611430 Other Knitted Garments of man-made fibres 3,650 94 2.60%

Total of top 40 commodities 348,982 10,218 2.90%

Others 189,467 10,877 5.70%

Total 538,449 21,095 3.90%



Top MMF Apparel Traded Categories

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Top 40 Traded MMF Apparel Categories and India’s Share S.No HS Code Description Global trade India's Exports India's share

1 611030 Jerseys of Manmade Fibres 26,817 71 0.26%

2 621210 Brassieres 11,468 107 0.93%

3 620293 Women's, girls anoraks etc. of manmade fibres, woven 10,426 2 0.02%

4 620193 Men's, boys anoraks etc., of manmade fibres, woven 10,316 5 0.05%

5 620443 Woven dresses of synthetic fibres 8,085 572 7.07%

6 620343 Men’s woven trousers of synthetic fibres 7,932 89 1.12%

7 610463 Women’s knitted trousers of synthetic fibres 7,830 18 0.23%

8 620640 Blouses and women’s shirts of manmade fibres 7,759 579 7.46%

9 620463 Women’s woven trousers of synthetic fibres 6,744 132 1.96%

10 621143 Track suits and other garments.; Women's or girls', of man-made fibres, woven 4,967 600 12.08%

11 610443 Knitted dresses of synthetic fibres 4,930 97 1.97%

12 620213 Women’s woven overcoats, raincoats, capes and cloaks of synthetic fibres 4,834 3 0.06%

13 620433 Women’s Jackets and blazers of synthetic fibres 4,413 32 0.73%

14 611596 Hosiery goods of synthetic fibres 4,321 23 0.53%

15 621040 Men's, boys garments, made up of impregnated fabric, nonwoven fabric or felt 4,320 23 0.53%

16 611241 Women’s swimwear of synthetic fibres 3,985 0 0.00%

17 610343 Men’s knitted trousers of synthetic fibres 3,854 45 1.17%

18 620333 Men’s Jackets and blazers of synthetic fibres 3,842 33 0.86%

19 621050 Women’s woven garments made up of impregnated fabric, nonwoven fabric or felt 3,707 0 0.00%

20 611430 Other Knitted Garments of man-made fibres 3,650 94 2.58%

21 610822 Women’s briefs and panties of manmade fibres 3,286 7 0.21%



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Top 40 Traded MMF Apparel Categories and India’s Share S.No HS Code Description Global trade India's Exports India's share

22 611610 Gloves and mittens impregnated or coated with plastic or rubber 2,923 15 0.51%

23 621133 Men’s woven track suits of manmade fibres 2,538 25 0.99%

24 621010 Garments made up of textile felts and nonwoven fabric 2,314 6 0.26%

25 620113 Men’s woven overcoats, raincoats, capes and cloaks of synthetic fibres 2,219 1 0.05%

26 610520 Men’s knitted shirts of manmade fibres 2,179 152 6.98%

27 610433 Women’s knitted jackets of synthetic fibres 2,175 6 0.28%

28 620530 Men’s woven shirts of manmade fibres 2,119 81 3.82%

29 610620 Women’s knitted blouses of manmade fibres 2,067 20 0.97%

30 610832 Knitted nightdresses and pyjamas of manmade fibres 2,047 16 0.78%

31 610230 Women’s knitted overcoats of manmade fibres 1,977 3 0.15%

32 620453 Woven Skirts of synthetic fibres 1,967 75 3.81%

33 621430 Woven shawls, scarves and mufflers of synthetic fibres 1,614 50 3.10%

34 610892 Women’s knitted negligees, bathrobes, dressing gowns of man-made fibres 1,512 5 0.33%

35 611521 Hosiery; panty hose and tights of synthetic fibres, measuring per single yarn less than 67 decitex 1,475 0.1 0.01

36 610712 Underpants and briefs; men's or boys', of man-made fibres 1,395 21 1.51%

37 610130 Men’s knitted coats, overcoats, anoraks and windjackets of synthetic fibres 1,340 7 0.52%

38 611693 Knitted Gloves, mittens and mitts; of synthetic fibres 1,260 9 0.71%

39 611300 Knitted garments made up of impregnated and coated fabrics 1,215 0.4 0.03%

40 610333 Men’s knitted jackets & blazers of synthetic fibres 1,076 56 5.20%

Others 10,404 428 4.11%

Total Synthetic Apparel 193,302 3,508 1.81%



Top Traded Technical Textile Categories

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Methodology for Shortlisting Top Technical Textiles Categories

Step 1Analysis of technical textiles HS codes • 207 HS codes defined by the Ministry of Textiles, • HS codes defined in Technical Textiles Baseline Survey Report of Ministry of Textiles and • Globally defined HS codes that contain technical textile products

Step 2Identification of top technical textile categories that are clearly defined at 6 digit HS code level so that global trade data can be relied upon (Global trade data is available only at the 6 digit level)

Step 3 Shortlisting of categories based on the global trade

Note: wherever possible in the final list 6 digit level HS codes have been consolidated at 4 digit level because the products are similar and hence can be clubbed

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Top 15 Traded Technical Textiles Categories Globally & India’s Share

S. NoHS

CodeSegment Description

Global Trade

(In US$ Million)

India's Exports

(In US$ Million)

India’s

Share

1 5603* Multi SegmentsNonwovens, whether or not impregnated, coated, covered or laminated (including articles made up of fabrics of heading 5603, classified under any other HSN Code)

16,835 132 0.78%

2 961900 Meditech Sanitary towels (pads) or sanitary napkins, napkins and napkin liners for babies 15,003 38 0.25%3 5903* Indutech Textile fabrics, impregnated, coated, covered or laminated with plastics 14,084 145 1.03%4 7019* Indutech Glass fibres and articles thereof 13,288 96 0.72%5 870895 Mobiltech Safety airbags with inflater system 12,056 46 0.38%

6 391810 HometechFloor, wall or ceiling coverings; of polymers of vinyl chloride, whether or not self-adhesive, in rolls or in the form of tiles

8,382 58 0.69%

7 3005* Meditech Wadding, gauze and bandages 8,200 58 0.71%

8 5703* HometechCarpets and other textile floor coverings, tufted, whether or not made up, (with special finishes / characteristics like Anti-Microbial, Anti-Odour, Fire-Retardant, Water-Repellant etc.)

7,648 534 6.98%

9 5702* HometechCarpets and other textile floor coverings; woven, (not tufted or flocked), whether or not made up (with special finishes / characteristics like Anti-Microbial, Anti-Odour, Fire-Retardant, Water-Repellant etc.)

4,706 558 11.85%

10 621050 Protech Women’s woven personal protective garments 3,781 2 0.05%

Total Top 10 categories 103,983 1,667 1.60%

11 611610 ProtechGloves, Mittens And Mitts, Knitted Or Crocheted Impregnated, coated or covered with plastics or rubber

2,984 15 0.49%

12 870821 Mobiltech Safety Belts 2,816 53 1.88%

13 400931 IndutechVulcanised Rubber tubing, piping and hoses, reinforced or combined with textile materials

2,755 48 1.74%

14 5902 IndutechTyre cord fabric of high tenacity yarn of nylon or other polyamides, polyesters or viscose rayon

2,678 44 1.64%

15 591190 Indutech Textile Products For Technical Uses 2,655 22 0.83%

Total Top 15 categories 117,781 1,848 1.57%

Data Source: UN ComtradeValues estimated for 2019

* All six digit codes within this to be included, as products are similar

* Carpet categories with special finishes / characteristics like Anti-Microbial, Anti-Odour, Fire-Retardant, Water-Repellant etc. are considered as technical textiles

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Detailed Description of Top 15 Technical Textile CategoriesS. No

HS 4 HS 6 HS 8

HS Code Description HS Code Description HS Code Description

1 5603*

Nonwovens, whether or not impregnated, coated, covered or laminated (including articles made up of fabrics of heading 5603, classified under any other HSN Code)

560311Of man-made filaments, (weighing not more than

25g/m2)56031100

Of man-made filaments, (weighing not more

than 25g/m2)

560312Of man-made filaments, (weighing more than

25g/m2 but not more than 70g/m2)56031200

Of man-made filaments, (weighing more than

25g/m2 but not more than 70g/m2)




70g/m2 but not more than 150g/m2)


150g/m2)56031400


150g/m2)

560391Not of man-made filaments, (weighing not more

than 25g/m2)56039100

Of other than man-made filament (weighing

not more than 25g/m2)

560392Not of man-made filaments, (weighing more than



more than 25g/m2 but not more than 70g/m2)




more than 70g/m2 but not more than

150g/m2)


150g/m2)56039400


more than 150g/m2)

Below Articles made from the above codes also to be included

33079090

Wet wipes made of non-woven fabrics and

impregnated, coated or covered with

substances or preparations of Chapter 33

62101000Garments, made up of fabrics of heading 5602

or 5603 (Coveralls)

63079090Other made up articles, including dress patterns

(Masks)

* May also Include HS Codes of finished articles made from fabric under heading 5603 such as: Masks (63079090), Wipes (33079090), Coveralls (62101000).

Nonwoven Facial Wipes Nonwoven Masks Nonwoven Coveralls

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Detailed Description of Top 15 Technical Textile Categories

S. NoHS 4 HS 6 HS 8


2 961900Sanitary towels (pads) or sanitary napkins, napkins

and napkin liners for babies

96190010 Sanitary towels ( pads) or sanitary napkins

96190020 Tampons

96190030 Napkins and napkin liners for babies

96190040 Clinical diapers

96190090 Other articles

Sanitary Pads Napkin Liners for Babies

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S. NoHS 4 HS 6 HS 8


3 5903

Textile fabrics, impregnated, coated, covered or laminated with plastics

590310Impregnated, coated, covered or laminated with

polyvinyl chloride

59031010Imitation leather cloth of cotton laminated,

pltd, etc. with PVC

59031090Other fabric impregnated, laminated, pltd or

coated with PVC

590320Impregnated, coated, covered or laminated with

polyurethane

59032010Imitation leather cloth of cotton laminated

platd, coated, etc. with polyurethane

59032090Other fabrics impregnated, laminated, pltd or

coated with polyurethane

590390

Impregnated, coated, covered or laminated with

plastics, (excluding polyvinyl chloride,

polyurethane and those of heading no. 5902)

59039010Cotton fabrics, impregnated, coated, etc. with

other plastics

59039020 Polyethylene laminated jute fabrics

59039090Other fabric pltd, laminated, coated or

impregnated with other plastics

Coated Fabrics Coated Fabrics used in Furniture

Coated Fabrics used in Aircraft Seats

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S. NoHS 4 HS 6 HS 8


4 7019Glass fibres and articles thereof

701911Glass fibres; (including glass wool), chopped

strands, of length <= 50mm70191100 Chopped strands of a length <=50 mm

701912 Glass fibres; (including glass wool), rovings 70191200 Rovings

701919Glass fibres; (including glass wool), slivers, yarns,

threads70191900 Other (slivers, yarn)

701931 Glass fibres; non-woven products, mats 70193100 Glass mats

701932Glass fibres; non-woven products, thin sheets

(voiles)70193200 Glass thin sheets (voiles)

701939Glass fibres; webs, mattresses, boards and similar

non-woven products excluding mats & thin sheets70193900 Other (webs, mattresses, boards, etc.)

701940 Glass fibres; woven fabrics of rovings 70194000 Woven fabrics of rovings

701951Glass fibres; woven fabrics (other than of rovings),

of width <=30cm 70195100 Woven fabrics (excl. rovings) of width <=30cm

701952

Glass fibres; woven fabrics (other than of rovings),

of a width >30cm, plain weave, weighing <250gsm,

of filaments measuring per single yarn <=136 tex

70195200

Woven fabrics (excl. rovings) of a width >30cm

plain weave, weighing <250 g/sqm of a filament

measuring per single yarn <=136 tex

701959 Glass fibres; woven fabrics (excl.rovings), n.e.c. 70195900 Other woven fabrics

701990 Glass fibres; n.e.c. 70199010 Glass wool or glass fibre

70199090 Other made-up articles of glass fibres nes

Glass Fibre Composites

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S. NoHS 4 HS 6 HS 8


5 870895 Safety airbags with inflater system 87089500 Safety airbags with inflater system

S. NoHS 4 HS 6 HS 8


6 391810Floor, wall or ceiling coverings; of polymers of vinyl chloride, whether or not self-adhesive, in rolls or in the form of tiles

39181010Wall /ceiling cover combined with knitted or

woven fabrics, nonwovens or felts

39181090 Other wall/ceiling coverings

Airbags

Textile Floor Coverings Textile Wall Coverings

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S. NoHS 4 HS 6 HS 8


7 3005Wadding, gauze and bandages

300510

Dressings, adhesive; and other articles having an

adhesive layer for medical, surgical, dental or

veterinary purposes

30051010 Adhesive gauze bandage

30051020 Adhesive tape (medicinal)

30051090Other adhesive dressings and other articles

having an adhesive layer

300590

Wadding, gauze, bandages and similar articles;

(excluding adhesive dressings), impregnated or

coated with pharmaceutical substances

30059010 Cotton wool medicated

30059020 Poultice of kaolin

30059030 Medicated lint

30059040 Bandages without adhesive layer

30059050 Burn therapy dressing soaked in protective gel

300590

Wadding, gauze, bandages and similar articles;

(excluding adhesive dressings), impregnated or

coated with pharmaceutical substances

30059060 Micro pores surgical tapes

30059070 Corn removers and callous removers

30059090 Other dressing articles N.E.S.

Gauze Bandages Wadding Bandages

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S. NoHS 4 HS 6 HS 8


8 5703

Carpets and other textile floor coverings, tufted, whether or not made up, with special finishes like Anti-Static, Dust resistant, Fire-resistant, Water-resistant, Anti-microbial, Anti-Bacterial, etc.

570310 Of wool or fine animal hair

57031010 Carpets

57031020 Mats and matting

57031090 Other floor coverings

570320 Of nylon or other polyamides

57032010 Carpets, carpeting and rugs

57032020

100% polyamide tufted velour, cut pile carpet

mats with jute, rubber latex or polyurethane

foam baking

57032090 Other mats and mattings

570330Of man-made textile materials (other than nylon

or other polyamides)


57033020100% polypropylene carpet mats with jute,

rubber, latex or PU foam baking

57033090Other textile coverings of other man-made

textile material

570390Of textile materials (other than man-made, wool

or fine animal hair)

57039010 Carpets etc. of cotton (not durries )

57039020 Carpets and floor coverings of coir

57039090 Other floor coverings of other textile material

Tufted Carpets

Special Carpets and Flooring falls under the segment of Technical Textiles, if these products are treated with any one the special finishes such as: Anti-Microbial, Anti-Odour, Fire Retardant, Water Repellent, etc.

33


S. NoHS 4 HS 6 HS 8


9 5702

Carpets and other textile floor coverings; woven, (not tufted or flocked), whether or not made up with special finishes like Anti-Static, Dust resistant, Fire-resistant, Water-resistant, Anti-microbial, Anti-Bacterial, etc.

570210

Carpets and other textile floor coverings; woven,

(not tufted or flocked), whether or not made up,

including kelem, schumacks, karamanie and similar

hand-woven rugs

57021000Kelem, schumacks, karamanie and similar hand-

woven rugs

570220 Of coconut fibres (coir)

57022010 Coir matting, woven, powerloom

57022020 Coir carpets and other rugs

57022090 Other floor coverings of coir

570231of wool or fine animal hair, of pile construction,

not made up, n.e.c. in item no. 5702.10 or 5702.20

57023110 Carpets

57023120 Druggets


57023140 Carpeting, floor rug and the like

57023190Other floor coverings of wool or fine animal

hair

570232

of man-made textile materials, of pile

construction, not made up, n.e.c. in item no.

5702.10 or 5702.20



57023290 Others

570239

of textile materials (other than man-made, wool or

fine animal hair), of pile construction, not made

up, n.e.c. in item no. 5702.10 or 5702.20

57023910Carpets and other floor coverings (not durries

of cotton)

57023920 Carpets, etc. of silk

570241of wool or fine animal hair, of pile construction,

made up, n.e.c. in item no. 5702.10 or 5702.20

57024110 Carpets of wool or fine animal hair

57024120 Druggets of wool or fine animal hair

57024130 Mats and matting of wool or fine animal hair

57024190Other floor coverings of wool or fine animal

hair

34


S. NoHS 4 HS 6 HS 8


9 5702

Carpets and other textile floor coverings; woven, (not tufted or flocked), whether or not made up with special finishes like Anti-Static, Dust resistant, Fire-resistant, Water-resistant, Anti-microbial, Anti-Bacterial, etc.

570242

of man-made textile materials, of pile

construction, made up, n.e.c. in item no. 5702.10

or 5702.20


57024220 Mats and mattings

57024230 Carpets, rugs and mats of handloom

57024290 Other incl. druggets

570249

of textile materials (other than man-made, wool or

fine animal hair), of pile construction, made up,

n.e.c. in item no. 5702.10 or 5702.20

57024910 Carpets of Cotton etc. (not durries of cotton)

57024920 Carpets etc. of silk


570250not of pile construction, not made up, n.e.c. in

item no. 5702.10 or 5702.20

57025021 Carpets



57025031 Carpets etc. of cotton (not durries)

57025032 Carpets etc. of silk

57025033 Placemat, tablemat, etc.

57025039Other textile coverings of other textile

materials, not of pile construction

570291

of wool or fine animal hair, (not of pile

construction), made up, n.e.c. in item no. 5702.10

or 5702.20

57029110 Carpets

57029120 Druggets


57029190Other textile floor coverings of wool, etc. not

pile construction

Woven Carpets

35


S. NoHS 4 HS 6 HS 8


10 621050 Women’s woven personal protective garments 62105000 Women’s woven personal protective garments

S. NoHS 4 HS 6 HS 8


11 611610Gloves, Mittens And Mitts, Knitted Or Crocheted Impregnated, coated or covered with plastics or rubber

61161000Gloves, Mittens And Mitts, Knitted Or Crocheted Impregnated, coated or covered with plastics or rubber

Bullet Proof VestFire Retardant Clothing

Coated Gloves

36


S. NoHS 4 HS 6 HS 8


12 870821 Safety Belts 87082100 Safety Belts

S. NoHS 4 HS 6 HS 8


13 400931Vulcanised Rubber tubing, piping and hoses, reinforced or combined with textile materials

40093100Vulcanised Rubber tubing, piping and hoses, reinforced or combined with textile materials without fitting

Safety Belts in vehicles

Rubber tubing reinforced with textile materials

37


S. NoHS 4 HS 6 HS 8


14 5902

Tyre cord fabric of high tenacity yarn of nylon or other polyamides, polyesters or viscose rayon

590210Textile fabrics; tyrecord of high tenacity yarn of nylon or other polyamides

59021010Tyre cord fabric of nylon or other polyamides impregnated with rubber

59021090 Others

590220Textile fabrics; tyrecord of high tenacity yarn of polyester

59022010Tyre cord fabric of polyester impregnated with rubber

59022090 Others

590290Textile fabrics; tyrecord of high tenacity yarn of viscose rayon

59029010Tyre cord fabric of viscose rayon impregnated with rubber

59029090 Others

Tyre Cord Fabric Usage of Tyre Cord Fabric

38


S. NoHS 4 HS 6 HS 8


15 591190 Textile Products For Technical Uses

59119010 Paper makers felt (woven)

59119020Gaskets washers polishing discs and other machinery parts of textile articles

59119090 Others

Paper Making Felt

Coastal Mega Investment Parks and Cluster Upgradation

40

Coastal Mega Investment Parks and Cluster Upgradation

Need to develop conducive manufacturing environment with “plug n play” facilities, which will help players to set up world class and competitive manufacturing facilities.

The industrial park will help themanufacturers to:• Attract local and foreign investments• Ability to cater to the bulk orders• Better quality products conforming to

industry standards & compliances• Creating employment for the local

manpower

Dedicated Zone with ‘Plug n Play’ Facilities

CETPReady to

Move Sheds

UtilitiesDormitories for

Labour Retention

Enhanced Logistics

Benefits

Key industrial zones to be identified in states like Gujarat, Maharashtra, Andhra Pradesh, Telangana, Orissa and MP

41

Representative Global Companies that can be Targeted for FDI

S.No Company Country Segment Sales 2018 – US$ bn

1 Far Eastern New Century Taiwan Synthetic Textiles 8.2

2 Kuraray Japan Synthetic Textiles 5.2

3 Taekwang Industrial Co. Ltd S. Korea Synthetic Textiles 2.5

4 Youngone Holdings Co., Ltd South Korea Synthetic Textiles 2.3

5 Wacoal Holdings Corp. Japan Garments 2

6 Crystal International Group Hong Kong Garments 1.6

7 Gunze Ltd. Japan Garments 1.5

8 Formosa Taffeta Co. Ltd. Taiwan Synthetic Textiles 1.2

9 Eclat Textile Co. Ltd. Taiwan Synthetic Textiles 1.0

10 TAL Group Hong Kong Garments 0.8

Textile Fund for Industry Support

43

Textile Fund for Supporting Industry

• Objective: Providing support to industry for investment and growth in identified areas

• Funding Structure: Government (70%) and Industry (30%)

Key Activities for Funding Support

ProductDevelopment and

R&D

Manufacturing Excellence

MarketDevelopment

Assistance

Investment Assistance

Digitalization of supply chain

• Building R&Dcentres for product development with required infrastructure and technologies

• Partnering with global institutions like KOFOTI for technical knowhow transfer

• Acquiring technical knowhow for achieving manufacturing excellence

• Skill development and traininginitiatives

• Participation in global trade fairs, exhibitions and conferences

• Opening marketing offices and warehouses in key markets

• Investment required for achieving scale and competence in identified sectors• Modern

technologies • Compliance

and Sustainability initiatives

• Investmentsrequired for digitaltechnologies within company and across the supply chain

Measures to Make Indian Cotton Prices Competitive for the Value Chain

45

Launch Global Cotton Contract on MCX

• It is well known that overnight price movements internationally over International Commodity Exchange (ICE) impacts the domestic prices immediately and is tracked by every player very closely. However, it’s unfortunate that no domestic player despite being impacted can hedge himself against the same

• The difference between ICE and MCX Cotton Futures Index keeps varying across the season and the range of variance can be as high as USC 10 to 12/lbs i.e. about 15%.

• Players, in the industry, who have separate international arms, are able to hedge and do arbitrage trading in ICE. However, Indian players need RBI permission for doing so which is very difficult to obtain. Hence, they stay open to the vagaries of international fluctuations and are consistently losing due to the risk they carry.

• It’s very important to give Indian players a level playing field, not only for exports/ imports business but also for domestic business.

• Hence, there is a need to launch a Global Cotton Contract in MCX to avoid such fluctuations in cotton prices and give Indian players a level playing field.

46

Introduction of Direct Benefit Transfer to Cotton Farmers

Mechanism for Market-Linked Selling of cotton at international prices by CCI

• Due to intervention by CCI through MSP mechanism, the cotton prices sold in domestic market is higher than international prices, whenever international prices come down.

• It is suggested that Cotton sold by CCI should be at international price levels

• China’s formula of average of international and domestic prices can be used for determining auction reserve price. We can use MCX and Cotlook Index as reference points for domestic and international prices.

• Clear cut timetable for selling, so that no speculation on when CCI will offer and what quantity – can start selling from January 1st and sell till stocks last. Offered quantity per day would be a certain %age of the daily consumption and linked to daily arrivals to ensure that excess supply is not pushed into the market.

China’s formula for calculating auction reserve priceBase selling price (cotton type 3128B) = (Average price of prior week's domestic cotton prices)*50% + (average price of prior week's international cotton price) * 50%.

1. Domestic cotton price= (China Cotton Index + CN Cotton)/2 2. International cotton price= Cotlook A Index (converted to USD per ton) * exchange rate * (1+1%import duty) * (1+9%VAT) 3. The exchange rate is the benchmark exchange rate of the foreign currency against the RMB announced by the People's Bank of China,

based on the customs taxation method and the third Wednesday of the previous month (if it is on public holiday, the fourth Wednesday is postponed)

47

Introduction of Direct Benefit Transfer to Cotton Farmers

Direct Benefit Transfer System to the cotton farmers for price differentiation between MSP and market price of Cotton

• Under this system, the farmers will get the difference between the MSP and market price of the seed cotton directly in their bank accounts.

• Quality of cotton will be maintained in a much better manner as private ginners would be forced to maintain quality as their sale realisation will depend on quality fibre – cost of monitoring quality of seed cotton and ginning by CCI will be eliminated completely.

• Fund requirement for managing purchase and stock of cotton by CCI would not be required thereafter

• Industry will get benefit of sourcing cotton at international prices and be more competitive

• This system may be established once the digital infrastructure is ready for smooth functioning

Thank you

Documents

Post COVID 19 Scenario: Making India a Manufacturing Hub