Textile IndustryThis essay Textile Industry is available for you on Essays24.com! Search Term Papers, College Essay Examples and Free Essays on Essays24.com - full papers database.
Autor: anton • November 15, 2010 • 9,786 Words (40 Pages) • 1,507 Views
AMITY INTERNATIONAL BUSINESS SCHOOL
INDIAN TEXTILE INDUSTRY
Submitted to: Submitted by:
Mr. L. Raghvan Mitesh Kumar Bizoara C-49
Sumeet Rattan C-62
Abhinav Gupta C-72
Table of Contents
EXECUTIVE SUMMARY 2
Market Highlights And Best Prospects 3
Market Profile 3
INDUSTRY OVERVIEW 4
Textile Industry 4
Status of the Textile Machinery Industry 5
Indian Textile Industry 5
Latest news in textile sector 6
Swot Analysis Of Indian Textile Industry 8
IMPORTS & EXPORTS 11
Import Policy 11
Trends in Domestic Consumption 11
Exports To The Major Markets 12
Export to U.S. 13
Export to EU 13
IMPLICATIONS ON INDIAN EXPORTS (OPTIMISTIC SCENARIO) 14
IMPLICATIONS ON INDIAN EXPORTS (PESSIMISTIC SCENARIO) 15
AGREEMENT ON TEXTILE & CLOTHING 16
Impact on World 17
MULTIFIBRE ARRANGEMENT (MFA) 1974-1994 18
Measures That Are Taken Post Mfa Scenario. 18
The new Textile Policy 2000 (NTxP-2000) 18
DEPB issues 18
Technology Up gradation Fund Scheme: 18
Liberalization of FDI Policy: 19
Export Promotion Capital Goods (EPCG) Scheme: 19
Advance Licensing Scheme: 19
Duty Exemption Pass Book (DEPB) Scheme: 19
Duty Drawback Scheme: 19
Targets Achieved By The Textile Industry Post Mfa 20
EFFECT OF FOREIGN TRADE POLICY IN TEXTILE INDUSTRY 21
For India to become a major player in world trade, an all encompassing, and comprehensive view needs to be taken for the overall development of the country's foreign trade. While increase in exports is of vital importance, a facilitation import is also required to stimulate the economy. Coherence and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development.
Trade is not an end in itself, but a means to economic growth and national development. The primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity. The Foreign Trade Policy takes an integrated view of the overall development of India's foreign trade. The foreign trade policy sets the core objectives, identifies key strategies and also addresses, spells out focus initiatives, outline export incentives and also addresses issues concerning institutional support.
India's textile sector is the country's second largest industry, after agriculture. It provides direct employment to about 35 million people. It is also India's largest foreign export earner, accounting for 35 per cent of the gross export earnings in trade.
Trade restrictions had hitherto kept the textile industry from soaring to the heights it is capable of. But all that changed from January 1, 2005. Quota-based restrictions for textile exports to the United States and European nations were lifted on January 1. The Indian textile industry now has the opportunity to realize its full potential and the sector is already eyeing an export target of $50 billion by 2010.
But with quotas having been removed and globalization in full swing, the market is now exposed to global competition. Indian manufacturers and exporters now have to compete with the global players and also face emerging tariff and non-tariff barriers. Yet with its speed of operation, skill, quality of products and low-cost labour, the industry is gearing up to reap rich rewards in the new era.
For the past two years, the market has been in a recession. As a result, market players have become very cost conscious and price sensitive. However, the future looks bright used textile machinery. This market segment is likely to grow faster than the broader market. The major factors that are likely to produce growth for this sector include:
1. A worldwide increase in demand for Indian textiles and garments.
2. The lowering of customs duties on imported textile machinery.
3. Reduced government restrictions on the import of the used capital goods.
4. The reduced cost of the used equipment which makes textile manufacturing operations more viable.
Market Highlights and Best Prospects
The Indian textile industry is the second largest in the world--second only to China. Indian textiles also account for 38 percent of the country's total exports and is, therefore, a very important industry. To sustain this growth, it is imperatives that the textile industry produce goods of high quality at reasonable prices. This means that the industry must continuously modernize its machinery. Therefore, the textile machinery industry sector