Book English 2011.p65 - Ministry of Textiles

annual report 2010-11LIBERALISED TRADING REGIME ANDEMERGING OPPORTUNITIESIn the liberalized post-quota period, Indiahas emerged as a major sourcingdestination for new buyers. As a measureof growing interest in the Indian textilesand clothing sector a number of buyersopened their sourcing / liaison office inIndia. These include Marks and Spencer,Haggar Clothing, Kellwood, Little Label,Boules Trading Company, Castle, AlsterInternational, Quest Apparel Inc., etc.Commercially the buoyant retailers acrossthe world are looking for options ofincreasing their sourcing from the Indianmarkets. Indian manufacturers are alsopro-actively working towards enhancingtheir capacities to fulfill this increaseddemand.EXPORT PERFORMANCE IN THECURRENT YEARIn 2007-08 the textiles exports of Indiasuffered badly due to sharp appreciationin Rupee vis-à-vis the US$. Although therupee has depreciated sharply vis-à-visthe US dollar since April, 2008, theexports prospects of the Indian textilessector continues to be adversely affected.Some of the reasons attributed to thisdecline are the financial sector melt downand economic slow down in internationalmarkets, increased cost of productionbecause of increasing raw material costs,high power and other input costs whichhave affected the profitability of textilesand garments units in India and theirexports. The liquidity crunch is anotherfactor that is affecting the industry. Insuch a situation the positive impact ofrupee depreciation had been washedaway. During the financial year 2009-10,various export promotion councils andtrade bodies represented to theGovernment that the textiles exports hadbeen adversely affected by recent globalrecession. For exports, the major marketshave been USA, EU & Japan and all thethree markets were recession during 2009-10. However, the trend changed in the2nd half of 2009-10, and there was revivalfrom the economic slow down in themajor markets. As a result, the exports ofT&C products during 2009-10 increasedby over 5.60% reaching a level of US$22.42 billion. During the current year(April-September 2010), the exports ofT&C lines have registered a growth of11.39% over the same period during2009-10. There has been an upwardswing in the export of all sectors of T&Cexports particularly in cotton textiles,handicrafts and carpets.Global exports of Ready MadeGarments (RMG)● Global exports of RMG during 2007-08 were of the order of US$ 9.07Billion, which increased to US$ 10.38Billion during 2008-09 but declinedby 3% to US$ 10.04 Billion in 2009-10.●●●●As per latest available statistics,exports of RMG during April-September, 2010 was of the order ofUSD4735.07 Million as againstUSD5010.57 Million during the sameperiod last year, indicating a declineof over 5.50% in US$ terms thisyear.EU was biggest destination for RMGexports, with over US$5.2 Billionworth of exports during the yearending March, 2010. However, therewas a decline of over 3% comparedto exports in 2008-09.US was the 2nd biggest destinationfor RMG, with exports of US$ 2.6Billion, though this was a decline ofaround 2% compared to thepreceding financial year.UAE was the 3rd biggest destinationwith around a Billion dollar worth ofexports to that group.47