Book English 2011.p65 - Ministry of Textiles

annual report 2010-11CHAPTER IVEXPORTSIndia's textiles and clothing industry isone of the mainstays of the nationaleconomy. It is also one of the largestcontributing sectors of India's exportsworldwide. The Vision Statement for thetextiles industry for the 11th Five YearPlan (2007-12), inter-alia, envisages Indiasecuring a 7% share in the global textilestrade by 2012. At current prices the Indiantextiles industry is pegged at US$ 55billion, 64% of which services domesticdemand. The textiles industry accountsfor 14% of industrial production, which is4% of GDP; employs 35 million peopleand accounts for nearly 12% share of thecountry's total exports basket.MILESTONESi) Exports of textiles and clothingproducts from India have increasedsteadily over the last few years,particularly after 2004 when textilesexports quota were discontinued.iii)iv)the last five years (2004-05 to 2009-10). Indian T&C exports is facingvarious constraints of infrastructure,high power and transaction cost,incidence of state level cess andduties, lack of state-of-the-arttechnology etc. The details of India'stextiles exports item-wise during thelast three years and current financialyear for the period Apr-September'10is at table 4.1.Readymade Garments account foralmost 45% of the total textilesexports. Apparel and cotton textilesproducts together contribute nearly70% of the total textiles exports.The exports basket consists of awide range of items comprisingreadymade garments, cotton textiles,handloom textiles, man-made fibretextiles, wool and woolen goods, silk,jute and handicrafts including carpets.ii)India's Textiles & Clothing (T&C)export registered robust growth of25% in 2005-06, recording a growthof US$ 3.5 billion over 2004-05 invalue terms thereby reaching a levelof US$ 17.52 billion and the growthcontinued in 2006-07 with T&Cexports of US$19.15 billion recordinga increase of 9.28% over previousyear and reached USD22.15 billionin 2007-08 denoting an increase of15.7% but declined by over 5% in2008-09 with exports of USD 20.94billion. During 2009-10, the exportsof T&C increased by over 5.60% andreached the level of USD 22.42billion. Thus exports of T&C havedenoted an increase of 60.14% inv) India's textiles products, includinghandlooms and handicrafts, areexported to more than a hundredcountries. However, the USA and theEU, account for about two-third ofIndia's textiles exports. The othermajor export destinations areCanada, U.A.E., Japan, Saudi Arabia,Republic of Korea, Bangladesh,Turkey, etc.vi)The export of textiles and clothingaggregated to US$ 22.42 billion in2009-10. The Government fixed thetarget for 2010-11 at US$ 25.48billion. So far during the period April-September'10, exports of T&C havebeen achieved at USD 11.26 billion.45