Government of India

Ministry of Textiles

(International Trade Section)

***

Sub: Note on Textiles & Clothing Exports of India.

1. Introduction

India’s textiles and clothing industry is one of the mainstays of the national

economy. It is also one of the largest contributing sectors of India’s exports worldwide. The

report of the Working Group constituted by the Planning Commission on boosting India’s

manufacturing exports during 12th

Five Year Plan (2012-17), envisages India’s exports of

Textiles and Clothing at USD 64.41 billion by the end of March, 2017. The textiles industry

accounts for 14% of industrial production, which is 4% of GDP; employs 45 million people

and accounts for nearly 11% share of the country’s total exports basket.

2. Milestones

i) Exports of textiles and clothing products from India have increased steadily over

the last few years, particularly after 2004 when textiles exports quota stood

discontinued.

ii) India’s Textiles & Clothing (T&C) exports registered a robust growth of 25% in

2005-06, recording a growth of US$ 3.5 billion over 2004-05 in value terms

thereby reaching a level of US$ 17.52 billion and the growth continued in 2006-07

with T&C exports of US$19.15 billion recording a increase of 9.28% over the

previous year and reached USD 22.15 billion in 2007-08 denoting an increase of

15.7% but declined by over 5% in 2008-09. Exports of Textiles & Clothing grew

from USD 21.22 billion in 2008-09 to USD 22.41 billion in 2009-10 and has

touched USD 27.47 billion in 2010-11. In the financial year 2011-12(P), exports

of textiles and clothing, has grown by 20.05% over the financial year 2010-11 to

touch USD 33.31 billion. Textiles exports in the period 2012-13 are witnessing a

(-) 4.82 percent growth in dollar terms although there is 8.10 percent growth in

rupee terms.

iii) The details of India’s textiles exports, principal commodity item-wise during the

last three years and current financial year for the period 2012-13 is at Annex-I.

iv) During the year 2012-13, Readymade Garments account for almost 39% of the

total textiles exports. Apparel and cotton textiles products together contribute

nearly 74% of the total textiles exports.

v) India’s textiles products, including handlooms and handicrafts, are exported to

more than a hundred countries. However, the USA and the EU, account for about

two-thirds of India’s textiles exports. The other major export destinations are

China, U.A.E., Sri Lanka, Saudi Arabia, Republic of Korea, Bangladesh, Turkey,

Pakistan, Brazil, Hong-Kong, Canada and Egypt etc.

3. Current Textiles & Clothing exports trend:

(a) Trend during the period 2011-12 (P).

In rupee terms, during 2011-12 (P) there has been a surge in exports of Handloom

product (68.51%), Coir & Coir Manufactures (40.49%), Cotton Textiles (37.23%),

Man-made textiles (25.99%), RMG (24.80%), Wool & Woolen textile (20.97%) and

Jute (4.72%).

In US$ terms the surge during 2011-12 (P) registered in Handloom product (60.09%),

Coir & Coir Manufactures (33.46%), Wool & Woolen textile (14.93%), Man-made

textiles (19.69%), RMG (18.56%), Cotton Textiles (30.37%) and Jute (-0.52).

(b) Latest Trend during the period 2012-13 (P)

The total textile exports during 2012-13 (P) were valued at Rs 172494.71 crore as

against Rs 159570.55 crore during the financial year 2011-12, registering an increase

of 8.10 percent in rupee terms.

In US dollar terms, the same was valued at US$31705.53 million (2012-13, P) as

against US$33310.21 million during the corresponding period of financial year 2011-

12 registering a decline of 4.82 percent.

4. Liberalised trading regime and emerging opportunities

In the liberalized post-quota period, India has emerged as a major sourcing destination for

buyers from all over the globe. As a measure of growing interest in the Indian textiles and

clothing sector, a number of reputed houses opened their sourcing / liaison office in India.

These include Marks and Spencer, Haggar Clothing, Kellwood, Little Label, Boules Trading

Company, Castle, Alster International, Quest Apparel Inc., etc. Commercially the buoyant

retailers across the world are looking for options of increasing their sourcing from the Indian

markets. Indian manufacturers are also pro-actively working towards enhancing their

capacities to fulfil this increased demand.

5. Country-wise analysis

India’s country-wise exports for top 20 destinations during the last three years is at

Annex-II.

In the global exports of Textiles, India ranked as the third largest exporter, trailing

EU-27 and China, as per WTO data – 2011 (latest). In the global market exports of

clothing, India ranked as the fifth largest exporter as per WTO data – 2011 (latest),

trailing Bangladesh, Hong Kong, EU-27 and China.

India’s textiles & clothing exports vis-à-vis total world exports are given below:

(In billion US$)

Year Textiles Clothing

World

Export

India’s

Exports

India’s %age

share in world

exports

World

Export

India’s

Exports

India’s %age

share in world

exports

2004 195.0 6.85 3.51 258 6.62 2.57

2005 203.0 7.85 3.90 276 8.29 3.00

2006 218.6 9.33 4.30 311.4 10.20 3.30

2007 241.3 9.81 4.06 347.06 9.93 2.86

2008 253.4 10.45 4.12 364.91 11.50 3.15

2009 211.1 9.12 4.32 315.62 11.45 3.62

2010 251 12.87 5.13 351 11 3.13

2011 293.5 15.01 5.13 412.45 14.36 3.48

Source: International trade statistics 2012, WTO Secretariat

The latest available data released by WTO Secretariat, the values of top ten exporters of

textiles & clothing in the world in calendar year 2012 are given below:-

(US$ billion)

Textiles (2011) Clothing (2011)

Rank Name of the

Country

Value

% of

world

share

Rank Name of the

Country

Value

% of

world

share

1. China 94 32.2 1. China 154 37.3

2. EU-27 77 26.1 2. EU-27 116 28.2

3. India 15 5.1 3. Hong Kong,

China

25 -

4. United States 14 4.7 4. Bangladesh 20 4.8

5. RP Korea 12 4.2 5. India 14 3.5

6. Hong Kong,

China

11 - 6. Turkey 14 3.4

7. Taipei, Chinese 11 3.8 7. Viet Nam 13 3.2

8. Turkey 11 3.7 8. Indonesia 8 2.0

9. Pakistan 9 3.1 9. United States 5 1.3

10. Japan 8 2.7 10. Mexico 5 1.1

World total 294 World total 412

Source: International trade statistics 2012, WTO Secretariat

6. Textiles Exports 2012-13

The targets for textiles exports for 2012-13 initially set at USD 38 billion have been

revised upwards to USD 39.60 billion, following the Foreign Trade Policy Annual

Supplement in June, 2012. The details of exports targets fixed and achieved during the last

three years and current year sector and item-wise including apparel, man-made and cotton

textiles are as under:

2010-11 2011-12 2012-13

Council Targets Achievement* Targets Achievement* Targets Achievement*

RMG 12000 11026 14000 13073 18000 12391

Cotton

Textile

(excl Raw

Cotton) 5000 5792 7000 6808 9000 7517

Man-made

Textiles 3700 4705 5500 5631 6100 5043

Handloom 300 346 500 554 400 518

Woolen

Textiles 630 442 700 508 750 418

Silk

Textiles 730 632 800 473 500 406

Handicrafts

# 2200 2301 2700 2706 3300 3305

Jute 275 460 350 457 500 387

Carpet 650 1037 800 846 1050 986

Total 25485 26471 32350 31056 39600 30971

*Based on DGCI&S data (Principal Commodities)

# As reported by the Export Promotion Council for Handicrafts (EPCH)

7. Imports

The total imports of T&C products by India reached US$ 5.22 billion during the

calendar year 2012. Cotton was the biggest import amongst T&C items, with a share of USD

0.77 billion followed by impregnated textile fabric (USD 0.74 billion) and Man-made

Filaments with a share of USD 0.73 billion. The imports have increased by 5.26% during the

calendar year 2012 in dollar terms over the corresponding period in calendar year 2011.

Import data is at Annex-III.

8. Export Promotion Measures

The Government has been continually supporting the textiles exports sector through

various provisions of the Foreign Trade Policy and the other policy initiatives to enable the

sector to increase market share in the global textiles markets.

9. Slowdown in exports of the textile sector and policy measures taken

As per latest exports figures (Principal Commodities) released by the DGC&IS,

textiles & clothing worth USD 26.82 billion was exported during 2010-11 and USD

33.31billion during 2011-12. During 2012-13, exports of textiles & clothing were of the order

of USD 31.71 billion as against USD 33.31 billon in 2011-12, recording a negative growth

4.82%.

The volatility in the EU market during the calendar year 2012 affected severely

India’s T&C exports to EU. The EU textiles market witnessed a negative growth of 13%

during the calendar year 2012, resulting in a 1.3 billion shortfall of India’s T&C exports to

EU during the Calendar year 2012 over 2011. EU T&C import data is at Annex-IV.

Policy realignment for apparel sector urgently required – duty drawback/ incentives

under FTP/ duty reduction in fabric/ yarn imports. MSP sales plan needs to be put in place,

CITM has held 2 rounds of discussions. TUFS committed liabilities crowding out new

sanctions. At the Processing Stage there is a need to provide the technical and financial

assistance to processing units that will enable industry to meet environment sustainability

objectives without making themselves uncompetitive in the international market. At the

Apparel Stage aamendment to Labour Laws is urgent, to permit longer hours of overtime

with due compensation, and to allow flexi-hiring of labour, ie according to variations in

orders. Presidential Assent to the Karnataka Bill should be persued. There is a need to adopt

the IT model of development of infrastructure of workers housing and workers dormitories

along with work spaces, to enable expansion of scale. Encourage and also support innovative

start-up models like hiring of built up work space for a-move-in-and-begin strategy that does

not require investment up front.

The textiles sector in India is keenly looking forward to the finalisation of the India-

EU BTIA, which would considerably open up trade in textiles sector with EU countries. A

very favourable stance has been taken by the Ministry of Textiles with regard to textiles trade

with Europe in terms of the broad based agreement with EU.

10. Export Promotion Measures

The Government has been continually supporting the textiles exports sector through

various policy initiatives to enable the sector to increase market share in the global textiles

markets. Government has introduced several export promotion measures in the Union Budget

2012-13 as well as through schemes of Foreign Trade Policy 2009-14, including incentives

under Focus Market Scheme and Focus Product Scheme; enhancing the coverage of Market

Linked Focus Product Scheme for textile products and extension of Market Linked Focus

Product Scheme etc to increase India’s share in various countries.

To ease the resultant financial distress, recognizing the Handloom sector as the most

vulnerable segment of the Textile industry, Government has announced a Handloom

Revival, Reform & Restructuring Package under which Rs.3884 crore was allocated for

waiver of loans of handloom cooperatives, individual weavers, etc. and for interest subsidy,

margin money and credit guarantee for fresh loans. Government also approved a debt

restructuring package to help loss making textile mills, to be administered on a case by case

basis by the banks within the prudential norms of the Reserve Bank of India.

The recent measures taken by the Government to support the textiles exports sector

are as under:

i) 2% Interest Subvention Scheme on rupee export credit is available to certain

specific export sectors. These are (i) Handicrafts, (ii) Carpets, (iii) Handloom,

(iv) Readymade Garments, (v) Processed Agriculture Products, (vi) Sports

Goods and (vii) Toys. In addition Small and Medium Enterprises (SME) in all

sectors enjoy this benefit. Currently the scheme ends on 31st March, 2013. Now

this scheme of 2% interest subvention to these specific sectors will be extended by

one more year, i.e., up to 31st March, 2014.

ii) Introduction of a new scheme to incentivize incremental exports in certain sectors

and to certain markets (incremental export performance for the last quarter of the

year, i.e. for Jan-March 2013 as compared to exports made by the same IEC

holder in Jan-March 2012 would be eligible for such incentives); and

iii) Five new countries have been added under the Focus Market Scheme while

Eritrea has been added under the Special Focus Market Scheme. The five

countries being added under FMS are New Zealand, Cayman Islands, Latvia,

Lithuania and Bulgaria. Under FMS Duty Credit of 3 per cent is given on the FoB

value of exports while under the Duty Credit is 4 per cent. Sixty new products

which include Engineering, Rubber, Textiles, Drugs & Pharmaceuticals products

among others, and three countries (Taiwan, Thailand and Czech Republic) have

been incorporated under the Market Linked Focus Product Scheme. Under the

Focus Product Scheme, more than 100 new products have been added from

sectors including Engineering, Textiles, Chemicals, Drugs, Pharmaceuticals,

Paper, Books, Publication and Printed Material. The products will be benefitted by

2 per cent Duty Credit. Further, the scrips issued under different schemes namely

FPS, FMS, VKGUY, SHIS, MLFPS, SFIS, AIIS, for import of goods, will now be

permitted to be utilised for payment of Excise Duty for domestic procurement, to

encourage manufacturing, value addition and employment.

11. Support to T&C industry under Union Budget 2013-14

The Highlights of Union Budget 2013-14 in respect of Textiles Sector are as under:

Technology Up gradation Fund Scheme (TUFS) to continue in 12th

Plan with an

investment target of Rs. 1,51,000 crore. The major focus would be on modernisation of the

powrloom sector. It is proposed to provide Rs. 2,400 crore in 2013-14 for the purpose.

Allocation of Rs. 50 crore to Ministry of Textile to incentivise setting up Apparel

Parks within the SITPs to house apparel manufacturing units with an additional grant of upto

Rs.10 crore to each Park.

A new scheme with an outlay of Rs. 500 crore called the Integrated Processing

Development Scheme has been proposed to be implemented in the 12th Plan to address the

environmental concerns of the textile industry, including improving the effluent treatment

infrastructure. It is proposed to provide Rs. 50 crore in 2013-14 for the scheme.

It has been accepted that the handloom sector which subsumes a large proportion of

women and belongs mainly to the backward classes is in distress. It is proposed to accept

their demand for working capital and term loans at a concessional interest of 6 percent.

150,000 individual weavers and 1,800 primary cooperative societies will benefit in 2013-14

with this inisiative. It is proposed to allocate an additional sum of Rs.96 crore in 2013-14 to

the Ministry of Textiles for interest subvention.

Khadi, village industries and coir were taken up for development during the 11th Plan

under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI). The 12th

Plan has provided an outlay of Rs. 850 crore. It is proposed to leverage assistance from

Multilateral Development Banks to extend SFURTI to 800 clusters during the 12th Plan.

400,000 artisans are expected to be benefited. However the scheme is being implemented by

MSME.

Custom Duty (Chapter 50 to 63):

50.1 The BCD on raw silk is being increased from 5% to 15% a measure of protection to

domestic sericulture.

Chapter 53:

53.1 Presently, coir yarn (53.08) is mentioned at S.No. 43 of notification No. 27/2011-

Customs. In column (4), which is presently blank, the entry Nil has been inserted as a

technical rectification. Chapter 54-63: No change.

Excise Duty:

Chapter 57:

57.1 All handmade carpets and carpets & other textile floor coverings of coir and jute,

whether or not handmade, falling under Chapter 57, are being fully exempted from excise

duty. In this connection, notification No. 12/2012-CE, dated 1st March, 2011 and S.No. 37 of

notification No. 2/2011-CE, dated 1st March, 2011 are being omitted. Chapter 58-60: No

change.

Chapter 61-63:

61.1 It has been accepted that the readymade garment industry is in the throes of a crisis

and needs a lifeline. There was a demand to restore the ‘zero excise duty route’ for cotton and

manmade sector (spun yarn) at the yarn, fabric and garment stages. Zero excise duty route, as

existed prior to Budget 2011-12, has been restored on readymade garments and made ups.

The zero excise duty route will now be available in addition to the CENVAT route under

which manufactures can pay excise duty on the final product and avail of credit of duty paid

on inputs. S.No. 16 of notification No. 30/2004-CE dated the 9th

July, 2004 as amended by

notification No. 11/2013-CE dated the 1st March, 2013 and S.No. 7 of notification No.

7/2012-CE dated 17th

March, 2012, as amended by notification No. 8/2013-CE dated the 1st

March, 2013 may be referred to for details.

12. Highlights concerning Textiles Sector with regard to the ANNUAL

SUPPLEMENT 2013-14 to FTP announced on 18.04.2013)

(a) Zero Duty Export Promotion Capital Goods (EPCG) Scheme

FTP has two variants under this scheme, namely, Zero Duty EPCG for few sectors

and 3% Duty EPCG for all sectors. During the last announcement on 5th June, 2012, a new

Post Export EPCG Scheme was announced and was notified on 18 February, 2013 by the

CBEC. Now it has been decided to harmonize Zero Duty EPCG and 3% EPCG Scheme into

one scheme which will be a Zero Duty EPCG Scheme covering all sectors. Authorization

holders will have export obligation of 6 times the duty saved amount. The export obligation

has to be completed in a period of 6 years. The period for import under the Scheme would be

18 months. Export obligation discharge by export of alternate products as well as accounting

of exports of group companies will not be allowed. The exporters who have availed benefits

under Technology Upgradation Fund Scheme (TUFS) administered by Ministry of Textiles,

can also avail the benefit of Zero duty EPCG Scheme.

(b) Interest Subvention Scheme

At present, 2% interest subvention scheme is available to certain specific sectors like

Handicrafts, Handlooms, Carpets, Readymade Garments, Processed Agricultural Products,

Sports Goods and Toys. The benefit of this scheme of 2% interest subvention has been

extended upto 31.03.2014. Items covered under Chapter 63 of ITC (HS) (other made up

textile articles, sets, rags) have been included under the scheme to widen its coverage. The

extended sectors would be able to avail benefit under this scheme during the period from

01.05.2013 to 31.03.2014.

(c) Utilization of Duty Credit Scrip

Holder of the Duty Credit Scrips issued under Focus Market Schemes, Focus Product

Scheme and Vishesh Krishi Gramin Udyog Yojana (VKGUY) shall be entitled to avail

drawback or CENVAT credit of the service tax debited in the scrips as per Department of

Revenue rules. All duty credit scrips issued under Chapter 3 can be utilized for payment of

application fee to DGFT for obtaining any authorization under Foreign Trade Policy. This

benefit shall be available only to the original duty credit scrip holders. Duty credit scrip can

also be paid for payment of composition fee and for payment of value shortfalls in EO under

para 4.28 (b) of Hand Book of Procedure Vol. 1.

(d) Market and Product Diversification

Norway has been added under Focus Market Scheme and Venezuela has been added

under Special Focus Market Scheme. Approximately, 126 new products have been added

under Focus Product Scheme including some products for textiles sector. Brunei and Yemen

have been added as new markets under MLFPS. Approximately, 126 new products have been

added under Focus Product Scheme including some products for textiles sector.

MLFPS is being extended from 01.04.2013 to 31.03.2014 for exports to USA and EU

in respect of items falling in Chapter 61 and Chapter 62 of ITC(HS).

The town of Gurgaon (Haryana) has been added to the existing list of towns of export

excellence for apparel exports.

(e) Incremental Exports Incentivisation Scheme

Incremental Export Incentivisation Scheme was announced on 26.12.12 for the

exports made during January 2013 to March 2013. This scheme is available for exports made

to USA, EU and Asia. This scheme has now been extended for the year 2013-14. Fifty three

countries of Latin America and Africa have been added with the objective to increase India’s

share in these markets.

(f) Second Task Force on Transaction Cost in International Trade

The report on Transaction Cost was released in Feb 2011. Implementation of its

recommendation has resulted into estimated reduction of transaction cost of approximately

Rs 2495 Crores. Second Task Force on Transaction Costs has been constituted. The

Committee would submit its report in six months.

(g) Widening of items eligible for import for Handloom/Made ups

Five additional items (embroidery/sewing threads/poly/quilted bedding materials and printed

bags) have been included in the list of items which are allowed duty free within the existing

limits upto 5% FOB value of exports of handloom made ups in preceding year or within the

existing limit of upto 1% of FOB value of exports of cotton/man-made ups in preceding year.

(h) Ease of Documentation and procedural simplification

Submission of physical copies of IEC and Registration-cum-Membership Certificate

(RCMC) with individual application has been dispensed with. It has been decided to dispense

with submission of hard copy of EP copy of shipping bills in case of (a) advance

authorization, (b) duty free import authorization for grant of Export Obligation Discharge

Certificate (EODC) if exports are made through EDI ports.

(i) Electronic Data Interchange Initiatives

e-BRC system allows Transmission of realization of export proceeds details from banks to

DGFT in electronically secured format. The system will lead to substantial reduction of

transaction cost and time.

10. New developments / initiatives in the T&C Sector

Ministry of Textiles has signed various Memorandum of Understandings with Foreign

Governments for Textiles and Clothing sector collaboration. The progress of the MoU in

place is as under:

Mauritius: A memorandum of understanding (MOU) for strengthening collaboration in

textiles sector was signed between the two Governments on February 7, 2012 during the state

visit of the Prime Minister of Mauritius to India. Under the MOU, a Joint committee on T&C

sector was constituted between both the countries. The Joint Committee has held 2 rounds of

meetings on July 23, 2012 in New Delhi and January 28, 2013 in Port Louis, Mauritius. The

2nd

Joint Committee discussions on 28th

January, 2013 were cordial and constructive and both

Parties reiterated that India-Mauritius relations were based on brotherhood and mutual trust.

A framework of implementation of the announcements made by the Commerce, Industry and

Textiles Minister of India during his visit to Mauritius on January 8-10. 2013 has been

formulated and reflected in a letter of intent signed between the 2 countries. India would offer

training to 1000 textiles workers, 35 scholarship programs and develop 10 fully compliant

apparel factories. The Joint Committee successfully developed five MOUs between

Institutions of both countries for deepening textiles sector collaboration.

Uzbekistan: An MoU was signed on 18th

May, 2011 by the Minister of Commerce, Industry

and Textiles during the visit of President Islam Karimov to New Delhi for cooperation in the

field of Textiles, Clothing and Fashion industries. As per article 7 of the MoU, an Indian

delegation led by JS (Exp) visited Tashkent from May 23-25, 2012 for the 1st meeting of the

Joint Working Group constituted under the bilateral MOU. The 1st meeting of the Joint

Working Group on May 25, 2012 reached consensus on the following issues: (a) 3

collaborative to be developed in silk sector (b) in Cotton sector, sharing of information and to

develop contract enforcement mechanisms; (c) collaboration between Research institutions

SITRA and Uzbekistan Research Institute of Natural Fibres. Subsequently, a textiles team

from Uzbekistan visited India during Tex-Trends - July, 2012 where they exhibited their

organisations’ products in a stall in the main exhibition area. A copy of the Protocol of the 1st

JWG meeting is at Annex-VIII. A follow up visit was undertaken by Director (Cotton),

Ministry of Textiles to participate in 8th

International Uzbek Cotton and Textile Fair (17-18th

October, 2012) and to discuss Cotton / Silk related issues.

The 2nd

Meeting of the JWG was held in New Delhi on 21st February, 2013. . It was

decided that Central Silk Board (CSB) and the Uzbek Research Institute would jointly

formulate research projects in the areas of silkworm & mulberry breeding, pest and nutrient

management, silkworm seed technology, and cocoon & yarn processing technology.

Collaborative project on plantation development, disease management and seed production

would be taken up. Both sides agreed on collaboration in the sharing of market information,

price forecasts and trends in Cotton trade. For exchange of information, it was agreed that the

Chairman Cotton Corporation of India and the Representative of the State Joint Stock

Foreign Trade Company would be communicating with each other on a regular basis.

Kazakhstan: A JWG in textiles sector cooperation was formed between both the countries in

2008. The 3rd

meeting of the JWG was held in India on 7th

June, 2012. The two sides agreed

to press forward on areas of mutual interest and concern as well as mutual assistance and

cooperation in the field of textiles and clothing and particularly in Wool, Cotton and MMF

sectors. The issue of training to Kazakhstan nationals in various levels of textiles and clothing

manufacturing was also discussed during the JWG meeting. The next round of JWG will be

held in Shymkent in 2013.

Tajikistan: The MoU between MoT and the Ministry of Energy and Industry of the Republic

of Tajikistan was among the MoUs signed with Tajikistan during the VVIP visit during

September, 2012. To take forward the initiative, we had addressed the Ambassador, Embassy

of Tajikistan, New Delhi in November, 2012 for seeking consideration of holding the first

meeting of the JWG in New Delhi in January 2013, on mutually convenient dates. The reply

of Tajik side is awaited.

Israel: A Letter of Intent was signed by Secretary (Textiles) and DG of the Israeli Ministry of

Trade, Industry and Labor (MOITAL) on 5th

September, 2012 in Tel Aviv to collaborate in

India’s manufacturing sector industry to address the challenging situation of pollution in the

textiles sector. The President of Shenkar Design Academy made a follow – up visit to the

Embassy of Israel, New Delhi with various proposals for collaboration in the field of fashion

designing and academic exchanges and training programmes. DG, NIFT has been requested

to plan out a specific programme for collaboration between NIFT and Shenkar Academy to

finalise the programme during the Shenker Academy delegations upcoming visit to New

Delhi. The Integrated Processing Development Scheme has been proposed to be implemented

in the 12th Plan to address the environmental concerns of the textile industry, including

improving the effluent treatment infrastructure. It is proposed to provide Rs. 50 crore in

2013-14 for the scheme. The Scheme is expected to be operational by July, 2013

Australia: An MoU was signed between India represented by Ministry of Textiles and the

Australian Government represented by the Department of Agriculture, Fisheries and

Forestery on 17th

October, 2012. The MoU seeks establishing of a Joint Working Group

which would interact periodically, as incorporated in the MoU. The MoU proposed that the

Co-Chairs of the JWG would be at the level of Joint Secretary (India) and Assistant Secretary

(Australia) or their delegates and include members representing the various

bodies/organizations which would interact with their appropriate counterparts and become

vehicles of implementation so as to leverage maximum benefits out of the enhance

cooperation with Australia in this Sector. The inaugural meeting of the Australia–India Joint

Working Group (JWG) on Cooperation in the Field of Wool and Woollen Products was held

on 22 February 2013 in Melbourne, Australia. The meeting dialogue focused on identifying

areas of mutual benefit and cooperation in wool trade and production. The Indian delegation

stated that they were looking for collaboration and knowledge sharing in sheep development

and genetics as a means to improve their livestock health and wool production. At the

conclusion of the discussions both sides worked to create a list of four elements for

collaboration/cooperation which are to be used in developing an action plan to be agreed on

through email within six weeks. The four elements were wool promotion, supply chain

sourcing, technical and knowledge transfer and improving sheep production in India.

MOUs are under discussions with:

Bangladesh – Draft approved by the Cabinet.

Sri Lanka - Draft finalized

Romania – signed on 23rd

April, 2013

Belarus – under consideration

The factory level training programme under the Driving Industry towards Sustainable Human

Capital Advancement (DISHA) Project has been drawn up through Apparel Export

Promotion Council. Technical experts with proven expertise to work with each participating

unit has already been engaged and the programme cost for each manufacturing unit would be

Rs.25,000/. All remaining costs upto Rs.1.80 lakh per unit would be borne by the Central

Government. The scheme requires support of Department of Labour in the States for

implementation and enhancing collaboration with the manufacturing units in the State.

Annex-I

India's textiles exports at a glance (Principal Commodities)

Prepared by IT Section on 02.05.2013 Item 2009-10 2010-11 2011-12(P) Variation 2012-13(P) Variation

` Crore US$ Mn ` Crore US$ Mn ` Crore US$ Mn ` US$ ` Crore US$ Mn ` US$

Readymade Garment 47608.39 10064.73 50180.69 11026.29 62625.15 13072.95 24.80% 18.56% 67412.82 12390.87 7.64% -5.22%

RMG of cotton incl. accessories 38070.33 8048.32 39032.14 8576.60 46117.11 9626.91 18.15% 12.25% 45822.24 8422.39 -0.64% -12.51%

RMG of Man-made fibre 5745.29 1214.59 6729.19 1478.62 10429.49 2177.15 54.99% 47.24% 13638.95 2506.92 30.77% 15.15%

RMG of other textile material 3792.77 801.82 4419.36 971.07 6078.55 1268.89 37.54% 30.67% 7951.63 1461.56 30.81% 15.18%

Cotton Textiles 27016.21 5711.41 39521.31 8684.09 54234.89 11321.49 37.23% 30.37% 60710.80 11159.00 11.94% -1.44%

Cotton raw including waste 9537.08 2016.20 13160.47 2891.77 21623.06 4513.79 64.30% 56.09% 19812.85 3641.72 -8.37% -19.32%

Cotton yarn, fabrics & madeups 17479.13 3695.20 26360.84 5792.31 32611.83 6807.69 23.71% 17.53% 40897.95 7517.28 25.41% 10.42%

Man-made textiles 18783.13 3970.88 21410.56 4704.58 26974.14 5630.83 25.99% 19.69% 27435.43 5042.79 1.71% -10.44%

Manmade staple fibres 1690.68 357.42 1920.18 421.92 2711.31 565.98 41.20% 34.14% 2759.50 507.21 1.78% -10.38%

Manmade yarn, fab. & madeups

17092.45 3613.46 19490.38 4282.65 24262.83 5064.84 24.49% 18.26% 24675.93 4535.58 1.70% -10.45%

Wool & Woolen textiles 2224.14 470.20 2012.13 442.13 2434.16 508.13 20.97% 14.93% 2276.46 418.43 -6.48% -17.65%

RMG of Wool 1799.20 380.36 1510.93 332.00 1707.92 356.53 13.04% 7.39% 1617.43 297.29 -5.30% -16.61%

Woollen yarn, fabrics &madeups

424.94 89.84 501.20 110.13 726.24 151.60 44.90% 37.66% 659.03 121.13 -9.25% -20.10%

Silk 2819.46 596.05 2874.13 631.54 2265.87 473.00 -21.16% -25.10% 2210.18 406.24 -2.46% -14.11%

RMG of Silk 1383.42 292.46 1169.26 256.92 1267.08 264.50 8.37% 2.95% 1297.91 238.56 2.43% -9.81%

Natural silk yarn, fab. & madeups

1411.12 298.32 1660.80 364.93 949.02 198.11 -42.86% -45.71% 849.36 156.12 -10.50% -21.20%

Silk waste 24.92 5.27 44.07 9.68 49.77 10.39 12.93% 7.29% 62.91 11.56 26.40% 11.30%

Handloom Products* 1252.81 264.85 1574.95 346.07 2653.95 554.01 68.51% 60.09% 2819.91 518.32 6.25% -6.44%

Textiles (excl HC, jute & coir) 99704.14 21078.12 117573.77 25834.69 151188.16 31560.40 28.59% 22.16% 162865.60 29935.64 7.72% -5.15%

Handicrafts 4548.91 961.67 5888.85 1293.97 5170.98 1079.44 -12.19% -16.58% 6450.77 1185.69 24.75% 9.84%

Handicrafts (excluding handmade carpets) 1066.58 225.48 1170.51 257.20 1118.94 233.58 -4.41% -9.18% 1089.10 200.18 -2.67% -14.30%

Carpets (excluding silk) handmade

3441.74 727.61 4706.65 1034.20 4032.83 841.85 -14.32% -18.60% 5340.77 981.66 32.43% 16.61%

Silk carpets 40.59 8.58 11.69 2.57 19.21 4.01 64.33% 56.12% 20.90 3.84 8.80% -4.20%

Coir & Coir Manufacturers 759.66 160.60 726.49 159.63 1020.62 213.05 40.49% 33.46% 1071.74 196.99 5.01% -7.54%

Coir & Coir Manufacturers 759.66 160.60 726.49 159.63 1020.62 213.05 40.49% 33.46% 1071.74 196.99 5.01% -7.54%

Jute 1033.09 218.40 2092.07 459.69 2190.79 457.33 4.72% -0.52% 2106.60 387.21 -3.84% -15.33%

Floor covering of jute 281.07 59.42 337.83 74.23 251.80 52.56 -25.47% -29.19% 284.26 52.25 12.89% -0.60%

Other jute manufactures 300.19 63.46 499.56 109.77 736.46 153.74 47.42% 40.05% 732.72 134.68 -0.51% -12.40%

Jute yarn 144.20 30.48 531.81 116.86 282.01 58.87 -46.97% -49.62% 221.16 40.65 -21.58% -30.95%

Jute hessian 307.63 65.04 722.87 158.84 920.52 192.16 27.34% 20.98% 868.46 159.63 -5.66% -16.93%

Textiles (incl. HC, coir & jute) 106045.80 22418.79 126281.18 27747.98 159570.55 33310.21 26.36% 20.05% 172494.71 31705.53 8.10% -4.82%

% Textile Exports 12.54% 12.54% 11.05% 11.05% 10.93% 10.93% 10.55% 10.55%

India's overall exports 845533.64 178751.43 1142921.92 251136.19 1459280.51 304623.53 27.68% 21.30% 1634672.95 300462.38 12.02% -1.37%

Source : Foreign Trade Statistics of India( Principal Commodities & Countries), DGCI&S for export figures in Rupee and Department of Commerce(Intranet) -Exchange rate

*Handloom Products have been included as commodities first time in 2009-10

Annex-II

India Export Statistics

Commodity: Textile & Clothing, Ch50 to 63

Annual Series: 2007 - 2011, Year To Date: 12/2011 & 12/2012

Millions United States Dollars

Partner Country Calendar Year

2010 2011 2012 %Change

World 27188 32642 32845 0.62

United States 4946 5779 5994 3.73

China 2325 2928 3907 33.47

United Arab Emirates 1798 2162 2172 0.46

United Kingdom 1667 2087 2080 -0.36

Germany 1528 1959 1567 -20.02

Bangladesh 1105 1101 1659 50.74

Italy 778 1030 774 -24.84

France 810 1017 823 -19.11

Spain 667 814 732 -10.01

Turkey 667 731 659 -9.89

Netherlands 523 728 626 -14

Belgium 474 615 477 -22.52

Brazil 497 557 544 -2.34

Saudi Arabia 473 540 547 1.33

Sri Lanka 397 502 483 -3.81

Egypt 338 492 493 0.21

Canada 347 431 402 -6.82

Japan 261 397 402 1.29

Denmark 281 381 308 -19.27

Pakistan 657 381 410 7.56

Annex-III

India Import Statistics From World

Commodity: Textile & Clothing, Ch50 to 63

Annual Series: 2007 - 2011, Year To Date: 12/2011 & 12/2012

Millions United States Dollars

Commodity Description

Calendar Year

2007 2008 2009 2010 2011 2012 %

Change

Textile & Clothing Ch50 to 63 3042 3676 3153 3922 4956 5217 5.26

54 Manmade Filaments, Including Yarns & Woven Fabrics 440 548 528 627 784 734 -6.33

59 Impregnated Etc Text Fabrics; Tex Art For Industry 438 543 483 608 749 736 -1.65

55 Manmade Staple Fibers, Incl Yarns & Woven Fabrics 229 285 288 371 548 498 -9.12

52 Cotton, Including Yarn And Woven Fabric Thereof 518 719 422 459 475 770 61.96

51 Wool & Animal Hair, Including Yarn & Woven Fabric 327 325 220 344 433 399 -7.72

50 Silk, Including Yarns And Woven Fabric Thereof 397 374 394 373 350 325 -6.99

60 Knitted Or Crocheted Fabrics 130 155 154 227 343 368 7.27

63 Textile Art Nesoi; Needlecraft Sets; Worn Text Art 108 225 195 268 343 408 19

53 Veg Text Fib Nesoi; Veg Fib & Paper Yns & Wov Fab 114 101 124 163 273 274 0.38

62 Apparel Articles And Accessories, Not Knit Etc. 69 90 64 102 166 202 21.63

56 Wadding, Felt Etc; Sp Yarn; Twine, Ropes Etc. 94 102 91 134 162 172 6.53

58 Spec Wov Fabrics; Tufted Fab; Lace; Tapestries Etc 94 103 99 105 129 142 10.15

61 Apparel Articles And Accessories, Knit Or Crochet 34 53 44 75 118 115 -2.73

57 Carpets And Other Textile Floor Coverings 51 56 47 66 83 72 -13.73

Source of Data: Ministry of Commerce

Annex-IV

EU27 (External Trade) Import Statistics From World

Commodity: Textile & Clothing, Ch50 to 63

Annual Series: 2007 - 2011, Year To Date: 12/2011 & 12/2012

Millions United States Dollars

Commodity Description

Calendar Year

2007 2008 2009 2010 2011 2012 %

Change

Textile & Clothing Ch50 to 63 110132 118407 104659 112377 130940 113871 -13.04

62 Apparel Articles And Accessories, Not Knit Etc. 41698 45439 40969 41627 48296 42449 -12.11

61 Apparel Articles And Accessories, Knit Or Crochet 37868 41973 39074 41242 47047 41176 -12.48

63 Textile Art Nesoi; Needlecraft Sets; Worn Text Art 8842 9559 8591 9572 11095 9443 -14.9

52 Cotton, Including Yarn And Woven Fabric Thereof 4565 4367 3272 4165 5330 3783 -29.03

54 Manmade Filaments, Including Yarns & Woven Fabrics 3826 3734 2680 3393 4249 3877 -8.76

55 Manmade Staple Fibers, Incl Yarns & Woven Fabrics 3407 3306 2487 3074 3871 3198 -17.39

51 Wool & Animal Hair, Including Yarn & Woven Fabric 2119 2044 1182 1693 2409 1934 -19.72

57 Carpets And Other Textile Floor Coverings 1825 1817 1519 1646 1823 1611 -11.64

59 Impregnated Etc Text Fabrics; Tex Art For Industry 1304 1464 1140 1406 1643 1518 -7.57

56 Wadding, Felt Etc; Sp Yarn; Twine, Ropes Etc. 1409 1500 1202 1505 1634 1567 -4.1

60 Knitted Or Crocheted Fabrics 1249 1196 1096 1355 1556 1506 -3.21

58 Spec Wov Fabrics; Tufted Fab; Lace; Tapestries Etc 998 964 784 850 932 885 -5.06

50 Silk, Including Yarns And Woven Fabric Thereof 541 585 345 424 559 483 -13.47

53 Veg Text Fib Nesoi; Veg Fib & Paper Yns & Wov Fab 479 460 318 424 496 441 -11.16

Source of Data: Eurostat

(Data Source: Intl. Trade Section, Website updated on 20-05-2013)