Textile exports to newer markets gaining momentum in last 2 years

CHENNAI: For years, the Indian textile industry has earned its bread and butter through exports to the US and Europe. Now, especially after the 2008 recession and the prevailing economic gloom in the EU markets, the industry is wary of betting high on western markets. As a result, a slew of newer markets are being explored, with increasing success.

Consider the following. In 2008-09, more than 60% of cotton textile exports (yarn, fabrics and made-ups) has been to the Europe and US. In two years, this has come down below 45%, according to data from Global Trade Information Services, Geneva. The rest of the world -- as the non-US, European markets are termed -- is made up of a slew of emerging markets such as Bangladesh, China, Sri Lanka and South Korea, among others. Exports to the newer markets have consistently risen through these years.
In 2010-11, Europe and US accounted for about $3,000 million of India's textile exports, exactly the same as in 2008-09. The rest of the world clocked $3,782 million, a jump from $2,026 million two years ago. "Intra-Asian trade is set to rise, with consumption growing at faster rates in these countries. India's consumption is growing at 7%," said Siddharth Rajagopal, ED, Texprocil, an export promotion body.

Numbers for another category of exports - knitted apparel and clothing accessories - tell a similar tale. In this segment, exports to the Europe markets have fallen to about $2,153 million in two years, out of India's total exports of $4,775 million in this category. The US market has managed to hold on to its numbers. But, it's again a number of smaller markets such as UAE (from $368 million to $511 million in two years), Australia ($15 million to $32 million) and even Djibouti (from zero to $13 million) that have fuelled Indian apparel exports during the recession years.

Courtesy: Economic Times
Sruthi Radhakrishnan Nov 10, 2011

Dayanidhi Maran, Union Minister of Textiles, addressing a press conference in New Delhi on Thursday.

NEW DELHI: The Union Textiles Minister, Dayanidhi Maran, is all set to embark on a major mission to help diversify the world market for textile exports from India, with a visit to Japan next week heading a first-ever joint delegation of Government and industry representatives.

During the visit, from July 20 to 22, Mr. Maran will address a business meeting hosted by Japan-India Business Cooperation Committee (JIBC), apart from inaugurating the Indian pavilion at the International Fashion Fair, which is being held from July 22 to 24 in Tokyo.
The visit comes in the backdrop of a steep drop in textile exports from India over the past one year on account of falling demand in the U.S. and Europe, which have been the two major markets for Indian textiles products. While the global economic slowdown has hit all the countries, demand for textile goods had been affected the most in the U.S. and Europe. Of late, there has been some improvement in the U.S. market, but no change in the European market.

Emphasising that his visit was not intended merely as a stop-gap measure to tide over the crisis, but to build a long-term relationship with Japan, Mr. Maran said, “It was our fault that we had so far been focussing mainly on the U.S. and European Union. We want to change this now”.

Addressing a group of Indian and Japanese journalists, he expressed confidence that the Japanese would get attracted to Indian textile products. “Indian industry adopts highest standards of quality. India also has stringent labour laws for the protection of the workers and follows eco-friendly policies. The Japanese consumers need not have any doubts. Our products are certified by the Europeans and they follow the world’s best standards”.
In a lighter vein, he reminded the Japanese journalists that Tirupur, which is the major hub for textile exports from India, was located in Tamil Nadu, from where film star, Rajnikant, also hailed. Rajnikant is reportedly very popular in Japan.

The delegation includes leading textile manufacturers and exporters from Tirupur and Coimbatore clusters, apart from representatives of Apparel Export Promotion Council, Cotton Textiles Export Promotion Council, Synthetic and Rayon Textiles Export Promotion Council and Knitwear Technology Mission.

At present, India had a negligible market share of 1.12 per cent in Japanese textile import basket. China is its predominant trade partner in the sector, accounting for 92 per cent of the basket. Much of the trade came from units set up by the Japanese industry and business.

During the visit, Mr. Maran will try to woo Japanese industry and business to invest in the Indian textile sector too. Recalling the slogan of “come to India, set up manufacturing units in India, sell in India and make money,” which he had successfully adopted to get foreign direct investment into the IT and telecom sector when he was the Union Minister for IT and Telecom, he pointed out that 100 per cent FDI (foreign direct investment) was allowed in the textile sector. “There is a huge scope for Japanese investments to update spinning, weaving, processing and garmenting facilities”.

To a question raising doubts about the investment climate in India, he pointed out that several foreign companies, including Toyota, Honda, Mitsubishi, Samsung, and Nokia have set up units in India and they were doing fine.

The National Textile Policy

Rajya Sabha The National Textile Policy – 2000 formulated in the year 2000 with an objective of strengthening textile industry including creating additional employment opportunities is in vogue and it is applicable till 2010. Govt. formulates new textile policies from time to time based on the needs of the industry. (i) In order to facilitate modernization / technology upgrdation of textiles mills, Government had launched Technology Upgradation Fund Scheme (TUFS) for Textile and Jute Industries w.e.f. 1.4.1999 for a period of 5 years which was subsequently extended up to 31.3.2007 and further extended during Eleventh Five Year Plan upto 31/03/2012. It is a credit linked scheme and provides interest reimbursement of 5% points on the interest charged by the lending agency on a TUFS compatible machinery / project. The scheme provides an additional option to the powerloom units to avail of 20% Margin Money subsidy in lieu of 5% interest reimbursement on investment in TUF compatible machinery. The scheme also provides 15% Margin Money subsidy for SSI textile and jute sector in lieu of 5% interest reimbursement. The scheme provides 5% interest reimbursement plus 10% capital subsidy for specified processing, technical textiles and garmenting machineries. (ii) In order to provide infrastructure support, the govt. has initiated Scheme for Integrated Textile Park (SITP) w.e.f. August 2005. Under the scheme, govt. support is restricted to 40% of the project cost subject to ceiling of Rs. 40 crore. (iii) National Jute Policy – 2005 was framed and operationalised from 1.3.2007 for five years with four Mini Missions. Each Mini Mission has several schemes for promotion and development of the jute sector. The Mini Mission has a scheme on “Acquisition of Machinery and Plant” with an outlay of Rs.82 crores. Under this scheme, all eligible Jute Mills/Jute Diversified Products (JDP)/manufacturing units are entitled to get subsidies for procurement of the eligible machinery, for modernisation, upgradation/or establishing a new unit. The sudsidy is 20% of the cost of identified plant and machinery procured by Jute Mills/JDP units upto a maximum of Rs.75 lakhs per company. For machinery set up in North Eastern States and for new projects, the ceiling is Rs.100 lakhs per recipient. So far twelve (12) Apparel Park projects under the Apparel Park for Exports Scheme (APES) have been sanctioned, with a total project cost of Rs.437.44 crores, including Government of India assistanceof Rs.184.22 crores. Grant-in-aid amounting to Rs.125.00 crores has so far been released under the scheme. State-wise sanction is – One each in Andhra Pradesh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and two each in Tamil Nadu and Uttar Pradesh. The Scheme for Integrated Textiles Parks (SITP) was brought into force in 2005-06 by merging the then existing two schemes, namely, Apparel Park for Exports Scheme (APES) and Textile Centers Infrastructure Development Scheme (TCIDS). So far forty (40) textiles parks projects under the Scheme of Integrated Textiles Parks have been sanctioned with a total project cost of Rs.4203.15 crores, including Government of India assistance of Rs.1438.03 crores. Grant-in-aid amounting to Rs.475.21 crores has so far been released under the Scheme. State-wise sanction is – Maharashtra (9), Gujarat (7), Andhra Pradesh (6), Tamil Nadu (6), Rajasthan (4), Punjab (3), West Bengal (2), Madhya Pradesh (1), Karnataka (1), Assam (1). As far as Orissa and Jharkhand States are concerned, no project has been sanctioned under any of the aforesaid schemes i.e. Apparel Park for Export Scheme and Scheme for Integrated Textiles Parks. This information was given by the Minister of State for Textiles, Shri E.V.K.S. Elangovan in a written reply in the Rajya Sabha today. NSK/SL

Textile exports may touch $22 billion

COIMBATORE: India’s textile exports in 2008-09 are expected to be close to $22 billion. Shipments in 2007-08 were $21.47 billion. A senior official in the Union Ministry of Textiles told The Hindu that “We will be close to that”. Domestic demand for textiles and clothing continued to be significant and export orders were relatively dull. However, Indian companies were also getting some orders diverted from China. According to data available, textile exports from April 2008 to February 2009 were nearly $20.5 billion against $19 billion in the year-ago period.

An official of the Confederation of Indian Textile Industry said textile exports were good during the first 3-4 months of the last financial year and had declined in the last three months. Thus exports can only be maintained at last year’s level. Joint Textile Secretary J. N. Singh said a special package, including non-fiscal measures, would help revive the sector.
Courtesy: The Hindu 28th May -Online edition

Patola: a double ikat fabric from Gujarat

Patola is possibly derived from the Sanskrit word “Pattakula”, meaning a silk fabric. It is a legendary heritage of Indian textiles from North Gujarat. A double ikat silk fabric in which both warp as well as weft threads are dyed into a complicated pattern, It is one of most complex textile-weaving techniques in the world and highly priced fabric.

The design in a patola is based on traditional motifs called "Bhat". These designs include: Chhabdi/ Chaabri bhat , Fulvali bhat, Paan bhat, Ratan chown bhat, Akhrot bhat, Okhar bhat ,Nari Kunjar bhat, Popat kunjar, Wagh bar hathi bhat/ Wagh kunjar, Vohra Cheer bhat,Maharas bhat,Chowkhadi bhat .Motifs of Patola though few are strictly Indian ……………………………..click here for more details

SILK- a natural fibre

Silk –often referred to as “The Queen of Textiles” is the strongest natural fibre lustrous, smooth, inherent affinity for dyes, vibrant colours, having high absorbent and light weight qualities excellent drape and elastic properties. Historically this is the highly desired fibre which has been used extensively for apparels, home furnishings and upholstery. Because of its lustrous look silk is always in vogue and cost highly. People love to dress in silk during festive season and during their family functions.

China is the first to discover this remarkable fibre incidentally in about 2600B.C. For many years China alone used to produce silk fibre and was producing this fine fabric , as the demand developed the secret was stolen out of China and eventually a large silk industry developed in Europe, Spain, Italy, France , India, Syria etc.

Muga, Tasar, Oak, Eri & Mulberry are the five major types of silk of commercial importance, obtained from different species of silkworms which in turn feed on a number of food plan. Except mulberry, other varieties of silks are generally termed as non-mulberry silks. India has the unique distinction of producing all these commercial varieties of silk. .......... click here for details

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