Shri Vile Parle Kelavani Mandal’s

Narsee Monjee College of Commerce and Economics

(Autonomous)

Department of Commerce
2020-21

EXPORT MARKETING
TYBCOM
Semester V

EXPORTS OF TEXTILE SECTOR

Submitted by:
UNNATI KAILASHCHAND AGARWAL
SAP No: 45208180021
Contact No: 9619033855

Roll No:

E 05
 TABLE OF CONTENTS

DECLARATION.................................................................................................................... 3

PLAGIARISM TEST REPORT..............................................................................................4

INTRODUCTION TO THE TOPIC........................................................................................5

BACKGROUND..................................................................................................................... 6

CURRENT CONDITIONS OF EXPORT IN TEXTILE SECTOR...........................................7

THE TYPES OF TEXTILE SECTORS IN INDIA...................................................................8

COVID- 19 EFFECTS ON EXPORT IN TEXTILE SECTOR..................................................9

STRENGTHS OF TEXTILE SECTOR.................................................................................10

WEAKNESSES OF TEXTILE SECTOR...............................................................................10

INITIATIVES TAKEN BY GOVERNMENT IN THE TEXTILE SECTOR...........................11

CONCLUSION..................................................................................................................... 12

LEARNING FROM THE ASSIGNMENT.............................................................................13

WEBLIOGRAPHY............................................................................................................... 14
 DECLARATION

I UNNATI KAILASHCHAND AGARWAL declare that this project/assignment titled

‘EXPORT OF TEXTILE SECTOR’ is entirely my own work and any additional sources of
information have been duly cited.
All the internet sources published or unpublished from which I have quoted or drawn
reference have been referenced fully in the Webliography and bibliography list. I understand
that failure to do so will lead to plagiarism and any similarity found with other work
elsewhere will result in severe disciplinary action.
I also understand that I will be called for viva/presentation (Online/Offline) and must attend.
I acknowledge it is my responsibility to keep myself updated with the schedule of viva and I
will make myself available during the same.

UNNATI KAILASHCHAND AGARWAL

Digital Signature:
 PLAGIARISM TEST REPORT
TOTAL PLAGIARISM = 5% + 0% + 0% = 5%

REPORT PART I:

REPORT PART II:

REPORT PART III:

INTRODUCTION TO THE TOPIC

The Indian textile and clothing industry is the second after the traditional agricultural industry
in India. The industry is one of the leading segments of the Indian economy and largest in the
world with a massive raw material and textiles manufacturing base. Natural or synthetic using
products of the chemical industry may be the raw material. It is one of the prominent sectors
of Indian economy in terms of its contribution to output, employment provider, after
agricultural sector. It is the second largest employment provider, after agricultural sector for
both skilled and unskilled labour in textiles. It offers direct employment to over 45 million
people in the country. The textile industry primarily deals with the production and design of
yarn, cloth, and their distribution.
The National Textile Policy was passed by The Government of India in 2000. The primary
function of the textile ministry comprise of formulating policy and coordination of man-
made fibre, cotton, jute, silk, wool industries, decentralization of power loom sector,
promotion of exports, economic analysis & planning, financial and promoting use of
information technology in the textile sector. The decentralized power looms/ hosiery and
knitting sector forms the largest component in the textiles sector. There are numerous public
sector units and textile research associations spreaded throughout the country.
FDI in the textiles and apparel industry has rose up to nearly $3.4 billion during 2020. Indian
textile industry has a sufficient capacity to produce a wide variety of products suitable for
different market segments, both domestic and international.
Few current affairs also have affected the textile industry in both positive and negative ways.
The deteriorating relations of India with its neighboring countries like China, Nepal, Pakistan
has affected the export of textiles in the recent times.
Many efforts have been taken by government to promote export of textiles in India. Several
schemes have been launched in order to promote and increase the export in this particular
sector.

BACKGROUND
The history of Indian exports is very old. Indian textile enjoys a rich and traces its history
back to the Indus Valley civilization where people used to wear homespun cotton clothes.
Textiles and cotton were exported from Gujarat to the Arab countries.
During the Mughal era Indian export flourished as various precious stones such as ivory,
pearls, tortoise stones etc. But Indian exports declined as the East India Company took
control of foreign trade during the British era,.
During the early centuries, there was textile trade in India. Weaving and spinning of cotton is
found in the ancient India with reference to the Vedic Literature, archaeological surveys and
studies four thousand years ago, during the Harppan Civilization. Consequently, the Indian
silks were often exchanged with the western countries for their spices in the barter system.
Industrial Revolution followed by the development of nationalist movement which lead to
sort of promotion in textile sector. The cotton textile sector was largely responsible for a
significant part of the empire's international trade.
During the British rule, the textile industry was the major component of economic income in
India. As a result of abolishment of slavery in America, England found a labour intensive
population & a source of ripe cotton in India. They convinced the farmers into producing and
exporting huge amounts of cotton, after a long period of protectionism over the English
textile industry. The first textile mill was set up in 1854 by C.N. Dawar in Mumbai.
Eventually, through the technical and marketing advances were made possible by the
colonization, the traditional method of artisan textile production was destroyed, and replaced
with large scale factory production.
 CURRENT CONDITIONS OF EXPORT IN TEXTILE SECTOR

India’s textiles sector is one of the oldest industries in the Indian economy, dating back to
several centuries.
The textile industry is extremely varied, at one end of the spectrum with hand-woven and
hand-spun textiles sector, while the capital-intensive sophisticated mills sector on the other
end. India is the second largest manufacturer of PPE and producer of polyester, silk and fibre
in the world. Textile Industry in India is a very self-reliant and independent industry and has
great diversification and versatility. The decentralized power looms/ hosiery and knitting
sector forms the largest component in the textiles sector. The close relation of textiles
industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions
of the country in terms of textiles makes it unique in comparison to other industries in the
country. India’s textiles industry has a capacity to produce wide variety of products suitable
for different market segments, across the globe.
India’s textiles industry contributed nearly 7 % of the industry output (in value terms) in
FY19. It contributed two per cent to the GDP of India and employed more than 45 million
people in FY19. The sector contributed 15 per cent to India’s export earnings in FY19. The
domestic textiles and apparel market stood at an estimated US$ 100 billion in FY19. The
textiles sector has experienced a spurt in investment during the last five years. The industry
(including dyed and printed) attracted Foreign Direct Investment (FDI) worth US$ 3.44
billion from April 2000 to March 2020.
Indian government has launched a number of export promotion policies for the textiles sector.
It has also allowed 100 per cent FDI in the sector under the automatic route. India is the
largest producer of cotton and jute in the world.
The textile industry can be broadly classified into two categories, the organized mill sector
and the unorganized decentralized sector:-
The organized sector of the textile industry is represented by the mills. It could be a spinning
mill , composite mill. Weaving activity is the main in decentralized sector, which also
comprises of the three major segments viz. power loom, handloom and hosiery. In addition,
there are readymade garments, carpet manufacturing units as well as khadi in the
decentralized sector. The major players in the export of textile industry are Arvind Mills,
Raymond’s, Reliance Textiles, and Vardhaman Shipping etc. Including the others namely:-
 Bombay Dyeing Ltd. (Composite and fully integrated)
 Oswal Knit India (Woolen Wear)
 Sharda Textile Mills (Man-made Fibre)
 Mafatlal Textiles (Fully integrated Composite Mill)
 Alok Textiles (Cotton and Man-made Fibre Textiles)

THE TYPES OF TEXTILE SECTORS IN INDIA

 The Man-Made Fibre/ Yarn and Power loom Sector

 The Cotton Sector
 The Handloom Sector
 The Woolen Sector
 The Jute Sector
 The Sericulture and Silk Sector
 The Handicraft Sector
 COVID- 19 EFFECTS ON EXPORT IN TEXTILE SECTOR

As a result of the on-going Pandemic of the spread of novel coronavirus diseases, most of the
businesses and lives have been affected due to the lockdown and a setback that the businesses
and all sectors have faced in the entire world; also the export sector has faced a slack in the
textile sector. While on one hand, the sector is struggling to continue with its production
schedule as off take has almost come to a halt; on the other hand the pressure to repay its
dues to banks is alarming.
The Textiles industry in India was estimated at more than US$ 100 billion in January 2020.
Stating that the situation is taking a turn for the worse due to closure of malls and retail
showrooms, it’s evident that “The textile industry is labour & capital intensive”. A majority
of workers are migrant labourers; they have moved to their native places leading to an
immense shortage of man power in industries and looms to operate. With the total disruption
in workflow & production schedule, the industry is facing its worst- ever crisis. In the export
sector, now that Covid- 19 has taken over key buying areas like Europe & the USA it has
impacted specially the suppliers of embroidery & luxury fabrics. According to a recent report
Impact of COVID- 19 Scenario on European and the US Apparel Market – estimates that the
combined apparel consumption of EU and the US might fall to about US$ 308 Billion, 40-
45% lower than the projected consumption. This will be tough time for Indian apparel
exporters as about 60% of the country’s apparel exports are destined for EU and the US
markets.
 STRENGTHS OF TEXTILE SECTOR

 The textile industry is self-reliant & independent:- The textile industry does not have
to depend on any other sector to operate. It majorly is self-reliant.
 Domestic and international markets are large & potential.
 Availability of abundant raw material helps industry for cost control & thus reducing
the lead-time of the operation.
 Skilled manpower that provides competitive advantage to industry is available & at
low cost.
 Large varieties of cotton fibre and a fast growing synthetic fibre industry are
available.
 Export potential is very promising.
 Through ‘Make in India’ initiative, investment opportunities for foreign companies
and entrepreneurs are present across the complete value chain of synthetics, value-
added and specialty fabrics, fabric processing set-ups.

WEAKNESSES OF TEXTILE SECTOR

 In various segments there is lower productivity.

 Highly fragmented Industry. Depends majorly on Cotton. A declining in Mill
Segment. Technological Development lacks and that affects the productivity and
other activities throughout the whole value chain.
 Transaction time at Ports and transportation time are infrastructural bottlenecks and
efficiency.
 Rigid labour laws have stunted the growth of the sector where labour involvement is
utmost.
 There is a lack of Trade Membership which restricts to tap other potential market.
INITIATIVES TAKEN BY GOVERNMENT IN THE TEXTILE SECTOR

 Under Union Budget 2020-21, a National Technical Textiles Mission is proposed for
a period from 2020-24 at an estimated outlay of around US$ 211 million.
 In 2020, The Ministry of Textiles is expected to be release The New Textiles Policy in
2020.
 Packaging of food grains and sugar in the material of jute for the Jute Year 2019-20
mandatorily approved by CCEA.
 Several measures including Amended Technology Up-gradation Fund Scheme (A-
TUFS), is estimated to create employment for as much as 35 lakh people also enable
investment worth 14 billion approx. by 2022 are taken by GOI.
 Incentives under the Merchandise Exports from India Scheme (MEIS) for two
subsectors of Textiles Industry - readymade garments and made-ups - from 2% to 4%
have been revised by The Directorate General of Foreign Trade (DGFT
 The Textile Ministry of India has announced Rs. 689 crore for setting up 21 ready-
made garment manufacturing units in 7 states for development and modernization of
Textile Sector in India.
 SAMARTH is a scheme for building capacity in the Textile Sector.
 CONCLUSION

Indian textile export sector plays a very important role in the Indian GDP, which is approx.
14 % of the total GDP. Textile sector is affected by a lot of factors since it is majorly a labour
intensive sector. The natural climatic conditions also have a significant impact on the export
sector as the raw material such as jute, cotton etc. are highly dependent on the prevailing
climatic conditions the country. Export sector has also been hit by the novel Covid-19
Pandemic; it has played an important role in the reducing trade of the nation. .
Hon. PM Narendra Modi has launched the scheme ‘MAKE IN INDIA’ has now gotten a
boost as a result of the not so favorable relations with its neighboring nation’s ad warlike
conditions. In his address to the Nation, Honorable PM, also mentioned ‘VOCAL FOR
LOCAL’, which will lead to an immense increase in export and a notable reduction in Indian
imports over the forthcoming years. As rightly mentioned by our Fin Min. Mrs. Nirmala
Sitharaman, Khadi handloom industries have observed an immense boom in the sector as it
was dying down before. India is even exporting PPE kits required. Also the ready-made
garments, ethnic wear, traditional material exporters.
Textile sector is expected to grow significantly in India by the year 2024- 2025. Textile sector
is also expected to provide employment to nearly 10 million for skilled as well as non- skilled
labourers.
 LEARNING FROM THE ASSIGNMENT

Assignments are used as a learning tool and device for evaluation. Undoubtedly the
assignment given by the teacher was meant to upgrade our learning skills and
inculcate critical thinking and creates an inclination towards the respective subject
and the assignment topic in particular. This assignment helped me a lot to work
independently and research more about the topic, with the help of these I have been
able to procure the best knowledge about the textile sector, as I had to do a thorough
study and research about the said topic as it was very new to me to learn and I am
thankful that I got this assignment which helps to build my knowledge in regards to
the extreme rich ancient history of textile sector, the impact and contribution of textile
import on the country’s GDP, how the COVID-19 pandemic has affected the export
the sector. In my topic there was a plethora of things to lean and understand about the
textiles sector like the major textile import, the biggest importer and exporter of
textiles in the world, the companies which play a very important role in the exports of
the sector. The key strengths of the sector and also the weaknesses to be minimized,
several measures taken by the Government of India to promote the export of textile.
Textile sector portraits the rich culture and heritage of the Indian culture. I enjoyed
researching and knowing and exploring new, interesting facts of the textile sector. I’m
glad to have received this topic as my assignment topic.
 WEBLIOGRAPHY

 www.ibef.org
 texmin.nic.in
 www.wikipedia.com
 www.indialawoffices.com
 www.businessworld.com
 business.mapsofindia.com
 www.investindia.gov.in
 www.indiatoday.in
 www.aepcindia.com
 www.fibre2fashion.com