Doing International Business in Textiles
Submitted By:- Amruta Khallikar 11FN-056 Hitesh Gandhi 11DM-051 Prithvi Chandra 11IT-023 Vishnu Balagopal 11DM-177 Sabyasachi Mandal 11IB-051
Indian Textile Industry : A Backgorund
The Indian textile industry is one of the leading textile industries in the world. Though it used to come under unorganized sector few years back, the scenario changed dramatically after the economic liberalization of the Indian economy. Liberalization gave the much-needed push to the textile industry, which has now successfully become one of the largest in the world.As per the last statistics available from the Annual Report 2009-10 of the Ministry of Textiles, "The Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to the country's gross domestic product (GDP) and 17 per cent to the country's export earnings." Additionally, it provides direct employment to over 35 million people and is the second largest provider of employment after agriculture.
India textile industry largely depends upon the textile manufacturing and exports. It also plays a major role in the economy of the country. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people. The Textile Industry is estimated to be worth around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012.
Indian textile industry can be divided into several segments, as listed below: * Cotton Textiles
* Silk Textiles
* Woolen Textiles
* Readymade Garments
* Hand-crafted Textiles
* Jute and Coir
Global Trends in Textile Trade
The Multi-Fiber Arrangement (MFA) has governed international trade in textiles and clothing since 1974. The MFA enabled developed nations, mainly the USA, European Union and Canada to restrict imports from developing countries through a system of quotas.The Agreement on Textiles and Clothing (ATC) to abolish MFA quotas marked a significant turnaround in the global textile trade. The ATC mandated that importing countries must integrate a specified minimum portion of their textile and garment exports based on total volume of trade in 1990, at the start of each phase of integration. In the first stage, each country was required to integrate 16 percent of the total volume of imports of 1990, followed by a further 17 percent at the end of first three year and another 18 percent at the end of third stage. The fourth stage would see the final integration of the remaining 49 percent of trade. World trade in textiles and clothing amounted to US $ 385 billion, of which textiles accounted for 43 percent (US $ 169 bn). Developed countries accounted for little over one-third of world exports in textiles and clothing. The shares of developed countries in textiles and clothing trade were estimated to be 47 percent (US $ 79 bn) and 29 percent, (US $ 61 bn) respectively. India, China and Pakistan have boosted their roles in global exports of textiles and clothing in 2005, while the market shares of the suppliers of these products from...
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