Textile Industry OverviewTextile Industry is one of the largest and oldest industries in India.

It has a significant role inIndia as it fulfils the essential and basic need of people. Textile Industry in India stands atunique place and has maintained a sustainable growth over the years. This is a self-reliant andindependent industry and has great diversification and versatility. Textile Industry in Indiaprovides great contribution for the development of economy. It is the second largest textileindustry in the world after China. It provides ample employment opportunities to peoplebelonging to all classes. After agriculture this industry provides employment to maximumnumber of people in India employing ! million people.Textile Industry represents the rich culture" tradition" heritage # economic well-being ofcountry with diversified range and versatility. At the same time industry is competitiveenough to fulfill different demand patterns of domestic and global mar$ets. Indian TextileIndustry plays vital role in countrys economic development and contributes %&' to industrialproduction in the country. Textile Industry contributes around &' of ()*" +' of excisecollections" %,' of employment in industrial sector" and %-' share in country.s export.Indian Textile Industry is valued at /0 1 - bn. The development of Indian Textile Industrystarted in %+,!. This was the year" for the first time Textile sector was considered as animportant industry and a separate policy was formulated for sector.s development. In the year2333" 4ational Textile *olicy was announced.5ith further development Textile Industry came out of 6uota 7egime of Import 7estrictionsunder the 8ulti 9iber Arrangement :89A;. This development came on %st <anuary 233!under the 5orld Trade Organi=ation :5TO; Agreement on Textiles and Clothing. >ecause ofthe elimination of quota restrictions" most of the developing countries now can develop thepotential mar$et at both domestic and international level. These countries can develop theindustry expertise and can have competitive advantage through implementing newtechnology" more s$illed labor will improved distribution channel" cost effective operationand production with greater value addition in each step of value chain. 8oreover it will helpfor 9oreign )irect Investment in industry that will create great opportunity to strengthen thesector. 0ome of the strengths of Indian Textile Industry are large and potential domestic andinternational mar$et" large pool of s$illed and cheap labor" well-established industry"promising export potential etc. 2. ?I0TO7@ O9 TABTICA4o one $nows when exactly the spinning and weaving of textile began. It has been said thatpeople $new how to weave even 2D333 years ago. This was even before humans were able todomesticate

animals. The oldest actual fragment of cloth found was in southern Tur$ey.*eople used fibers found in nature and hand processes to ma$e fibers into cloth. Aven thoughhigh technology was not available" s$illed weavers created a wide variety of fabrics. )yeingof fabrics was done to satisfy the universal human need for beauty.5ithin time" more complex social and political organi=ation of people evolved. 5ith thegrowth of cities and nations" improvements in technology came into place and there was asubstantial development in the international trade" both of which involved textiles.Chinese textile was considered to be the most significant in international trade. ?istorianshave claimed that sil$ from China has reached ancient (reece and 7ome along a trade routecalled the 0il$ 7oad in the latter part of the second century >.C. and Agypt in %333 >.C. The7omans also imported cotton from nearby Agypt and from India. Archeologists have foundfacilities for dyeing and finishing cotton fabrics in settlements throughout the 7oman world.)uring the middle ages" the production and trading of the plant called Ewoad." an importantsource of dye" was a highly developed industry. )uring the fifteenth century" Trade 9airs insouthern 9rance provided a place for the active exchange of wools from Angland and sil$sfrom the 8iddle Aast. The economic activities surrounding these events gave rise to the firstinternational ban$ing arrangements. Aven the discovery of America was a result of the desireof Auropeans to find a faster route not only to the spices but also to the textiles of the Orient.Textile trade quic$ly too$ root in America" as colonists sold native dyes such as indigo andcochineal to Aurope and bought cottons from India. Although advances were being made inthe technology of textile production" the manufacture of cloth in 5estern Aurope in %D33 wasstill essentially a hand process. @arns were spun on a spinning wheel and fabrics were wovenby handoperated looms.A maFor reorgani=ation of manufacturing of a variety of goods occurred during the latter halfof the %D33s in 5estern Aurope. These changes" $nown as the Industrial E7evolution." alterednot only technology" but also social" economic" and cultural life. The production of textileswas the first area to undergo industriali=ation during the seventeenth and eighteenth centuriesas the result of an economic crisis. (ood quality textile products" produced inexpensively inIndia and the 9ar Aast" were gradually replacing Auropean goods in the international mar$et. . In >ritain" it became imperative that some means be found to increase domestic production"to lower costs" and to improve the quality of textiles. The solution was found in thesubstitution of machine or nonhuman power for hand

processes and human power.8any important inventions" most importantly spinning machines" automatic looms" and thecotton gin" improved the output and quality of fabrics. These inventions provided thetechnological base for the industriali=ation of the textile industry. Aach invention improvedone step of the process. 9or example" an improvement that increased the speed of spinningmeant that looms were needed that consumed yarn more rapidly. 8ore rapid yarn productionrequired greater quantities of fiber. The growth of the textile industry was further hastened bythe use of machines that were driven first by waterpower" then by steam" and finally byelectricity. The textile industry was fully mechani=ed by the early part of the nineteenthcentury. The next maFor developments in the field were to ta$e place in the chemistEslaboratory. Axperimentation with the synthesis of dyestuffs in the laboratory rather than fromnatural plant materials led to the development and use of synthetic dyes in the latter half ofthe nineteenth century. Other experiments proved that certain natural materials could bedissolved in chemical solvents and re-formed into fibrous form. >y %+%3" the first plant formanufacturing rayon had been established in the /nited 0tates.The manufacture of rayon mar$ed the beginning of the manufactured textile fibers industry.0ince that time" enormous advances have been made in the technology for every field in thetextile industry. Today" the textile industry utili=es a complex technology based on scientificprocesses and vast economic organi=ations.5ith the application of advanced technology to the textile field" textile use has expandedfrom the traditional areas of clothing and home furnishings into the fields of construction"medicine" aerospace" sporting goods" and industry. These applications have been madepossible by the ability of textile scientists to utili=e textile fibers" yarns" and fabrics forspecific uses. At the same time that textile technology is ma$ing strides in new directions" thefabrics that consumers buy for clothing and household use also benefit from the developmentof new fibers" new methods of yarn and fabric construction" and new finishes for existingfibers and fabrics.Today" a huge international industrial complex encompasses the production of fiber"spinning of yarns" fabrication of cloth" dyeing" finishing" printing" and manufacture of goodsfor purchase. Consumers purchase many different products made of textiles. The story of the &. Fourney that these products ma$e as they progress from fiber to yarn to fabric to finishedproduct is not Fust the story of spinning yarns" weaving or $nitting fabric" or constructing theend product. It is also the story of a complex networ$

of interrelated industries.?I0TO7@ O9 I4)IA4 TABTICA I4)/0T7@The history of textiles in India dates bac$ to nearly five thousand years to the days of the?arappan civili=ation. Avidences that India has been trading sil$ in return for spices from the2nd century have been found. This shows that textiles are an industry which has existed forcenturies in our country. 7ecently there has been a si=eable increase in the demand for Indiantextiles in the mar$et. India is fast emerging as a competitor to China in textile exports. The(overnment of India has also reali=ed this fact and lowered the customs duty and reduced therestrictions on the imported textile machinery. The intention of the governmentEs move is toenable the Indian producers to compete in the world mar$et with high quality products. Theresults of the governmentEs move can be visible as Indian companies li$e Arvind 8ills"8afatlal" (rasimG 7eliance Industries have become prominent players in the world. TheIndian textile industry is the second largest in the world-second only to China. The othercompeting countries are Horea and Taiwan. Indian Textile constitutes !' of the totalexports of our country.The history of apparel and textiles in India dates bac$ to the use of mordant dyes and printingbloc$s around 333 >C. The foundations of the Indias textile trade with other countriesstarted as early as the second century >C. A hoard of bloc$ printed and resist-dyed fabrics"primarily of (uFarati origin" discovered in the tombs of 9ostat" Agypt" are the proof of largescale Indian export of cotton textiles to the Agypt in medieval periods.)uring the % th century" Indian sil$ was used as barter for spices from the western countries.Towards the end of the %Dth century" the >ritish Aast India Company had begun exports ofIndian sil$s and several other cotton fabrics to other economies. These included the famousfine 8uslin cloth of >engal" Orissa and >ihar. *ainted and printed cottons or chint= waswidely practiced between India" <ava" China and the *hilippines" long before the arrival of theAuropeans.India Textile Industry is one of the largest textile industries in the world. Today" Indianeconomy is largely dependent on textile manufacturing and exports. India earns around 2D'of the foreign exchange from exports of textiles. 9urther" India Textile Industry contributes !. about %&' of the total industrial production of India. 9urthermore" its contribution to thegross domestic product of India is around ' and the numbers are steadily increasing. IndiaTextile Industry involves around ! million wor$ers directly and it accounts for 2%' of thetotal employment generated in the economy.Indian Textile Industry 8ar$etIndia Textile Industry is one of the leading textile industries in the world. Though waspredominantly

unorgani=ed industry even a few years bac$" but the scenario started changingafter the economic liberali=ation of Indian economy in %++%. The opening up of economygave the much-needed thrust to the Indian textile industry" which has now successfullybecome one of the largest in the world. India textile industry largely depends upon the textile manufacturing and export. It alsoplays a maFor role in the economy of the country. India earns about 2D' of its total foreignexchange through textile exports. 9urther" the textile industry of India also contributes nearly%&' of the total industrial production of the country. It also contributes around ' to the()* of the country. India textile industry is also the largest in the country in terms ofemployment generation. It not only generates Fobs in its own industry" but also opens upscopes for the other ancillary sectors. India textile industry currently generates employmentto more than ! million people. It is also estimated that" the industry will generate %! millionnew Fobs by the year 23%!India is a traditional textile -producing country with textiles in general" and cotton inparticular" being maFor industries for the country. India is among the world.s top producers ofyarns and fabrics" and the export quality of its products is ever increasing. Textile Industry isone of the largest and oldest industries in India. Textile Industry in India is a selfreliant andindependent industry and has great diversification and versatility. The textile industry can bebroadly classified into two categories" the organi=ed mill sector and the unorgani=eddecentrali=ed sector.The organi=ed sector of the textile industry represents the mills. It could be a spinning mill ora composite mill. Composite mill is one where the spinning" weaving and processingfacilities are carried out under one roof. The decentrali=ed sector is engaged mainly in theweaving activity" which ma$es it heavily dependent on the organi=ed sector for their yarnrequirements. This decentrali=ed sector is comprised of the three maFor segments vi=." power -. loom" handloom and hosiery. In addition to the above" there are readymade garments" $hadias well as carpet manufacturing units in the decentrali=ed sector.The Indian Textile Industry has an overwhelming presence in the economic life of thecountry. It is the second largest textile industry in the world after China. Apart fromproviding one of the basic necessities of life i.e. cloth" the textile industry contributes about%&' to the countrys industrial output and about %D' to export earnings. After agriculturethis industry provides employment to maximum number of people in India employing !million people. >esides" another !3 million people are engaged in allied activities. India is thelargest producer of <ute" the 2nd largest producer of 0il$" the rd largest

producer of Cottonand Cellulosic 9ibersI@arn and !th largest producer of 0ynthetic 9ibersI@arn.The main obFective of the textile policy 23%% is to provide cloth of acceptable quality atreasonable prices for the vast maFority of the population of the country" to increasinglycontribute to the provision of sustainable employment and the economic growth of the nationGand to compete with confidence for an increasing share of the global mar$et. Indias textileindustry is considered a pioneer in the industry" as the industriali=ation of India in other areasis managed by funds generated by the textile machinery industry. ?owever" since thebeginning of liberali=ation in %++2 to %+D3" the industry tends to protect domestic producersof cotton with a clear obFective continuous erosion of its prosperity.*rospectConsidering the continual capital investments in the textile industry" the (ovt. of India mayextend the Technology /pgradation 9und 0cheme :T/90; by the end of the %%th 9ive @ear*lan :till 23%%-23%2;" in order to support the industry. Indian textile industry is massivelyinvesting to meet the targeted output of 1,!bn by the end of 23%3" aiming exports of 1!3bn.There is huge development foreseen in Indian textile exports from the 1%Dbn attained in233!-3- to 1!3bn by 233+-%3. The estimation for the exports in the current financial year isabout 1%+bn. There is substantial potential in Indian exports of technical textiles and hometextiles" as most Auropean companies want to set up facilities near-by the emerging mar$ets"such as China and India.The global demand for apparel and woven textiles is li$ely to grow by 2! percent by year23%3 to over !mn tons" and Asia will be responsible for ,! percent output of this growth.The woven products output will also rise in Central and 0outhern American countries" D. however" at a reasonable speed. On the other hand" in maFor developed countries" the outputof woven products will remain stable. 5eaving process is conducted to ma$e fabrics for abroad range of clothing assortment" including shirts" Feans" sportswear" s$irts" dresses"protective clothing etc." and also used in non-apparel uses li$e technical" automotive" medicaletc.It is been forecasted that the woven textile and apparel mar$ets will sustain their growth fromcurrent till 23%3. The imports of apparel and textiles will rise from developed economies li$ethe /0A and the western countries of Aurope and <apan" along with some newly emergedeconomies" such as 0outh Horea and Taiwan. Certainly" import growth has been witnessedvertical rise in the previous year.Apparel is the most preferred and important of all the other applications. 5oven fabrics arewidely used in apparel assortments" including innerwear" outerwear" nightwear andunderwear" as well as in speciali=ed apparels li$e protective clothing and

sportswear. ?ometextile also contributes considerably in woven fabric in products assortments li$e curtains"furnishing fabrics" carpets" table cloths etc.0pecial $ind of woven fabrics are utili=ed in medical as well as industrial applications. Themedical applications include adhesives" dressing bandages" plasters etc.The Indian Industry foresees huge demand for industrial woven products for medical andautomotive applications. )emand for woven fabrics is anticipated to be rise vertically in thesector of home textiles.4on woven sector has great future in terms of global demand" thus maFor facilities of cottonyarn are currently concentrating Fust on home textiles. It is mandatory" that the pea$management of the cotton yarn manufacturers analy=e the future prospect and growing graphof demand for non woven products.Anticipating massive growth in medical and automobile sectors" these sectors assuressubstantial demand for non woven facilities in India. Albeit" home textiles also will lurehigher demand" there are specific demands for home textile facilities also.The Dth 9ive @ear *lan has huge consideration on agricultural growth that also includescotton textile industry" resulting a prosperous future forecast for the textile industry in India.Indian cotton yarn manufacturers should rush forward for Foint ventures and integrated plans ,. for establishing processing and weaving facilities in home textiles and technical textiles inorder to meet export target of 1!3bn" and a total textile production of 1,!bn by 233+-23%3. Axpectations are high" prospects are bright" but capitalising on the new emergingopportunities will be a challenge for textile companies. 0ome prerequisites to be included inthe globally competing textile industry areJ Imbibing global best practices Adopting rapidly changing technologies and efficient processes Innovation 4etwor$ing and better supply chain management Ability to lin$ up to global value chains.The Indian textiles industry has established its supremacy in cotton based products" especiallyin the readymade garments and home furnishings segment. These two segments will be the$ey drivers of growth for Indian textiles. 7eadymade garment exports were worth /01 , bnin 9@3- and will cross /01 %- bn by the end of 23%3" assuming a conservative growth of%!' per annum. According to estimates" investments in textiles are expected to touch /01 %bn by 23%3.The readymade garment segment will be the principal driver of growth even in the domesticindustry. The changing preferences of Indian consumers -- from buying cloth to readymadegarments -- have prompted several companies to move up the value chain into the finishedproducts segment.0trategic Initiatives>usiness integration -- especially forward integration -- by the larger

textile companies hasbeen prominent among Indian companies. 0everal companies that are engaged in fabricmanufacturing are now $een to enter the readymade garments space. A recent entrant is0iyaram" which launched its readymade garments range in 4ov 3-" following suit with othermaFors li$e Century Textiles and 7aymond.8ost of the large textile companies have opted for an inorganic growth strategy to scale upoperations. Acquisition is the most logical step towards integrating operations and buildingthe value chain. )omestic acquisitions are on the rise" while acquiring foreign assets is yet togain traction. 0ome recent domestic acquisitions that have been executed in 233- include +. H0C # Industries. acquisition of )eccan Cooperative" and Ambattur Clothing ta$ing overCelebrity 9ashions. Another growing phenomenon observed among Indian textile companiesis the setting up of manufacturing facilities in strategic regions outside India" where they canavail of duty concessions and reduce export lead-time. Kodiac and Ambattur Clothing haveset up facilities in the (ulf region to cut down on export delivery schedules to the Auropeanand /0 mar$ets. 7aymond has set up a unit in >angladesh to avail of the =ero duty access tothe A/.This trend is seen primarily among the large domestic players" who are trying to achievesi=able scales in order to win orders from the large retailers in the /0 and A/. (lobalretailers prefer largesi=ed companies that can scale up capacities consistently" $eep up withdelivery schedules and meet their growing demand. They have clear preferences forcompanies with integrated design" process and manufacturing facilities.An interesting commonality in countries with successful garment exports is that they have amuch lower level of sub-contracting than India. A study during the %++3s found that apparelfirms 9uture Outloo$ BBBIII in India subcontracted D&' of their output" as compared toonly %%' in ?ong Hong" %,' in China" 23' in Thailand" 2,' in 0outh Horea and -' inTaiwan. Consequently" these countries have a wider base of exports and have done very wellin the mar$et for large volumes of uniform products.9oreign Acquisitions by Indian Textile Companies *eriod Acquirer Acquired Company Cicense Of E?ealthtex. Hidswear 8ay 3% Arvind 8ills >rand Of Lf Corpn :/0A; <un 3% Ambattur Clothing Colour *lus :/H; 7egency Texteis *ortuguesa 0ep 3% 7aymond.s Cimitada :*ortugal; 0ep 3 <indal *olyester 7exor (roup :9rance; )ec 3& <CT Ctd C4CT 8alaysia :0ynegal;

%3. 8ay 3! 7eliance (roup ICI *a$istan Ctd :*a$istan; 0hirting Company Cocated In <un 3! Kodiac Clothing Alqo=e Industrial Area :)ubai; )ec 3! (?CC )an 7iver :/0A; Ammetre Tintolavanderie 8ay 3- 8alwa Industries Industrial :Italy; 8ay 3- 8alwa Industries Third )imension Apparels :Italy; <ul 3- 5elspun India C?T ?olding :/H; Tash$ent-To.yetpa Te$stil Ctd <ul 30pentex Industries :/=be$; <ul 3- (?CC 7osebys :/H;The exports mar$et will remain favourable for India till 233," when quota restrictions onChina end. *ost 233," competition will become tougher. This will be the phase in whichIndian textile companies will come under tremendous pricing pressures and tighter productdelivery schedules. 4evertheless" the value-added segments of readymade garments" homefurnishings and made-ups will continue to grow.Implications for 08AsThe new business dynamics have varying undertones across the value chain. The segmentthat is li$ely to be hit is weaving. The 08As in the *owerloom and handloom sector will facesignificant churn in the future. 0pinning mills that account for +!' of the yarn and fibreproduction" will move up the value chain into weaving. This will erode the viability of thehitherto protected *owerloom and handloom operators numbering over &33"333" who haveremained insulated from competitive forces so far. A possible remedy could be for theseweavers to align with bigger players or integrate operations that would ensure off-ta$e oftheir products. %%. The fragmented industry structure has in the past been beneficial in generating employment"but will be difficult to sustain in a globally competitive environment. 9or fabricmanufacturers in the unorganised segment" this will mean inefficient units losing outeventually" while the more efficient and dynamic ones aligning with manufacturers or buyers.9or readymade garment 08As" rising demand and preference for ready-to-wear outfits in thedomestic mar$et will sustain a large number of units in this sector. This will be the mostthriving segment in the industry and 08As will play a $ey role.India.s $ey assets include a large and low-cost labour force" si=able supply of fabric"sufficiency in raw material and spinning capacities. On the basis of these strengths" India willbecome a maFor outsourcing hub for foreign manufacturers and retailers" with compositemills and large integrated firms being their preferred partners. It will thus be essential for08As to align with these firms" which can ensure a mar$et for their products and new orders.5ea$nesses of the Indian textile industry include fragmentation of the industry" lengthydelivery times" delays in customs clearance and high transportation and input costs. To tac$lethese factors" the (overnment will have to play a $ey role. Infrastructure

development"reforms in labour laws and significant policy support will be essential.Textile 0ectors in IndiaJThe 8an-8ade 9iber I @arn and *owerloom 0ectorJ This part of industry includes fiberand filament yarn manufacturing units. The *ower looms sector is decentrali=ed and plays avital role in Indian Textiles Industry. It produces large variety of cloths to fulfill differentneeds of the mar$et. It is the largest manufacturer of fabric and produces a wide variety ofcloth. The sector contributes around -2' of the total cloth production in the country andprovides ample employment opportunities to &.,- million people.The Cotton 0ectorJ Cotton is one of the maFor sources of employment and contributes inexport in promising manner. This sector provides huge employment opportunities to around!3 million people related activities li$e Cultivation" Trade" and *rocessing. India.s Cottonsector is second largest producer of cotton products in the world.The ?andloom 0ectorJ The handloom sector plays a very important role in the country.seconomy. It is the second largest sector in terms of employment" next only to agriculture.This sector accounts for about % ' of the total cloth produced in the country :excludingwool" sil$ and Hhadi;. %2. The 5oolen 0ectorJ The 5oolen Textile sector is an Organi=ed and )ecentrali=ed 0ector.The maFor part of the industry is rural based. India is the Dth largest producer of wool" andhas %.,' share in total world production. The share of apparel grade is !'" carpet grade is,!'" and coarse grade is %3' of the total production of raw wool. The Industry is highlydependent on import of raw wool material" due to inadequate production.The <ute 0ectorJ <ute 0ector plays very important role in Indian Textile Industry. <ute iscalled (olden fiber and after cotton it is the cheapest fiber available. Indian <ute Industry isthe largest producer of raw Fute and Fute products in the world. India is the second largestexporter of Fute goods in world.The 0ericulture and 0il$ 0ectorJ The 0il$ industry has a unique position in India" and playsimportant role in Textile Industry and Axport. India is the 2nd largest producer of sil$ inworld and contributes %,' of the total world raw sil$ production. In India 0il$ is availablewith varieties such as" 8ulberry" Ari" Tasar" and 8uga. 0ericulture plays vital role in cottageindustry in the country. It is the most labor-intensive sector that combines both Agricultureand Industry.The ?andicraft 0ectorJ The Indian handicrafts industry is highly labor intensive" cottagebased and decentrali=ed industry. It plays a significant # important role in the country.seconomy. It provides employment to a vast segment of craft persons in rural # semi urbanareas and generates substantial foreign exchange for the

country" while preserving its culturalheritage.0tructure of IndiaMs Cotton Textile Industry/nli$e other maFor textile-producing countries" India.s textile industry is comprised mostly ofsmall-scale" non-integrated spinning" weaving" finishing" and apparel-ma$ing enterprises.This unique industry structure is primarily a legacy of government policies that havepromoted labor intensive" small-scale operations and discriminated against larger scale firmsJ Cotton farming and harvestingJ Cotton is grown in tropical as well as sub tropical area in India. 8ostly the cotton grown in India is from dry lands and crops mostly depend on the irrigation systems available and not only on the rain water. (inningJ (inning is the process where cotton fiber is separated from the cotton seed. The first step in the ginning process is when the cotton is vacuumed into tubes that carry it to a dryer to reduce moisture and improve the fiber quality. Then it runs % . through cleaning equipment to remove leaf trash" stic$s and other foreign matter.(inning is accomplished by one of two methods. Cotton varieties with shorter stapleor fiber length are ginned with saw gins. This process involves the use of circularsaws that grip the fibers and pull them through narrow slots. The seeds are too large topass through these openings" resulting in the fibers being pulled away from the seed.Cong fiber cottons must be ginned in a roller gin because saw gins can damage theirdelicate fibers.Oil millJ in the operation the oil is extracted from the cotton seeds that are comingfrom the ginning process. The cotton seeds coming from the ginning unit are thenpassed through the pressing unit and crude cotton oil is produced. The pressed cottonseed oil ca$e is supplied as the cattle feed. The crude is further modified as the bio-diesel which could be used as the one of the energy source. The refined cotton oil isalso used as the edible oil but it is proved to be unfit for the human health.0pinningJ 0pinning is the process of converting cotton or manmade fiber into yarn tobe used for weaving and $nitting. Cargely due to deregulation beginning in the mid-%+,3s" spinning is the most consolidated and technically efficient sector in India.stextile industry. Average plant si=e remains small" however" and technology outdated"relative to other maFor producers. In 2332I3 " India.s spinning sector consisted ofabout %"%&- small-scale independent firms and %"!++ larger scale independent units.5eaving and HnittingJ 5eaving and $nitting converts cotton" manmade" or blendedyarn into woven or $nitted fabrics. India.s weaving and $nitting sector remains highlyfragmented" small scale" and labor-intensive. This sector consists of about .+ millionhandlooms" ,3"333 N*owerloom enterprises that operate about %.D million looms"and Fust % D"333 looms in the various composite mills.

N*ower looms are smallfirms" with an average loom capacity of four to five owned by independententrepreneurs or weavers. 8odern shuttle less looms account for less than % percent ofloom capacity.9abric 9inishingJ 9abric finishing :also referred to as processing;" which includesdyeing" printing" and other cloth preparation prior to the manufacture of clothing" isalso dominated by a large number of independent" small scale enterprises. Overall"about 2" 33 processors are operating in India" including about 2"%33 independent unitsand 233 units that are integrated with spinning" weaving" or $nitting units. %&. ClothingJ Apparel is produced by about DD"333 small-scale units classified as domestic manufacturers" manufacturer exporters" and fabricators :subcontractors;. Composite 8illsJ 7elatively large-scale mills that integrate spinning" weaving and" sometimes" fabric finishing are common in other maFor textile-producing countries. In India" however" these types of mills now account for about only percent of output in the textile sector. About 2D- composite mills are now operating in India" most owned by the public sector and many deemed financially Nsic$.India textile industry is one of the leading in the world. Currently it is estimated to be around/01 !2 billion and is also proFected to be around /01 %%! billion by the year 23%2. Thecurrent domestic mar$et of textile in India is expected to be increased to /01 -3 billion by23%2 from the current /01 &.- billion. The textile export of the country was around /01%+.%& billion in 233--3D" which saw a stiff rise to reach /01 22.% in 233D3,. The share ofexports is also expected to increase from &' to D' within 23%2. 9ollowing are area"production and productivity of cotton in India during the last six decadesJ Area in la$h *roduction in la$h bales of %D3 @ield $gs per@ear hectares $gs hectare%+!3-!% !-.&, 3.-2 +2%+-3--% D-.D, !-.&% %2&%+D3-D% D-.3! &D.- %3-%+,3-,% D,.2& D,.-3 %D3%++3-+% D&. + %%D.33 2-D2333-3% ,!.D- %&3.33 2D,233%-32 ,D. 3 %!,.33 3, %!. 2332-3 D-.-D % -.33 32233 -3& D-. 3 %D+.33 ++233&-3! ,D.,- 2& .33 &D3233!-3- ,-.DD 2&&.33 &D,233--3D +%.&& 2,3.33 !2%233D-3, +&. + %!.33 !-D233,-3+ + .D 2+3.33 !2-Though during the year 233,-3+" the industry had to face adverse agro-climatic conditions" itsucceeded in producing 2+3 la$hs bales of cotton comparing to %! la$hs bales last year" yetmanaged to retain its position as worlds second highest cotton producer.Aconomic issues*rices of CottonThe 8inimum 0upport *rices of Hapas :0eed cotton; for fair average quality announced forthe cotton season 233!- 233- :Oct O 0ept;" was fixed at last year.s level :233&-3!; i.e.7s.%D-3I- per quintal for medium staple variety

:9-&%&I<- &I?- DDD;. The support price for?-& :Cong staple variety; has been fixed at 7s.%+,3I - per quintal" an increase of 7s.23I- perquintal over support price of 233&-3!. The 80* fixed for 9-&%&I?-DDDI<- & variety of $apaswill be applicable only to 7aFasthan. The price of this variety" grown in ?aryana and *unFabhas been fixed $eeping in view the respective quality differential" vis-Pvis 7aFasthan"obtaining in these 0tates. The Cotton Corporation of India Ctd. :CCI; undertoo$ massive80* operations throughout 233&-3! in all the cotton growing states" and procured $apasequivalent to lint cotton of 2D.!2 la$hs bales. In 233&-3!" due to favourable seasonalconditions" there was a sharp rise in productivity" which pea$ed to a record &- Hg.CintIhectare" as compared to ++ $g. I lint per hectare during 233 -3&" the cultivated areaincreased to ,+.23 la$hs hectares in 233&-3!" as compared to D-. 3 la$hs hectares in 233 -3&" %-. and the production touched 2& la$h bales in 233&-3!" as compared to %D+.33 la$h bales in233 -3&.*resent 0cenarioTextile Industry is offering one of the most basic requirements of community and it possessimportanceG preserve continued growth for developing quality of life. 9rom themanufacturing of raw materials to the delivery of end products" it has gain it.s $ind ofposition" as a self-dependent sector and with considerable value-addition at every stage ofdealingG it is a $ey input to the country.s economy.Today the textiles and clothing industry engages an important position in India.s economy.>eing the maFor foreign exchange earner having about !' in its torso" contributing to about 3 ' of India.s exports and %&' of industrial productions" expecting above -' ()* in233!" and it considered as the second largest vital sector of employment initiator afteragriculture sector./nder the 5orld Trade Organi=ation :5TO; Agreement on Textiles and Clothing" the textilequota scheme of quantitative import limitations under the multi-fiber arrangement :89A;came to an end on %st <anuary" 233!" hence developing countries li$e India will flourish inthe new competitive atmosphere and as a result" the Indian textile industry will have astronger place in both their export and domestic mar$ets.All along with its usual yarn and fabrics" at present India is exporting more than %33 garmentproduct range. 8any worlds. leading brands li$e Tommy ?ilfiger" (ap" Ci= Claibome" *oloetc are sourcing products from India.5ith huge investments" persistence innovations" latest product mix and planned mar$eting"today" India has come out as a flourishing outsourcing centre for textiles and apparel industryto meet the global requirement of the manufacturing fibers and yarns products. In a view ofthe rising rapport with maFor global brands" dismantling of quota system from 233! erawould hit upon

India as a main global outsourcing hub.Competitive advantage # possible growth in 0ynthetic Textiles 0ector India.s synthetictextile sector is relatively modern and has a high growth potential which will help India tocoming out as a maFor outsourcing hub. 5ith a compounded annual growth rate of more than22' the exports of 889 textiles have stretched out to a level of /0 1%.-2 billion in 2332-3 starting from small exports in %+!&. The export growth in 2332-3 matches up to the %D. preceding year was in the harmony of 3 percent" and the 889 textile sector is the onlysector where the performance has exceeds by the target fixed for this year by /0 1 %%!million.Indian synthetic textiles are more and more accomplishing new mar$ets along with $eepingthe mar$et share in the existing mar$ets. At present Indian synthetic textile exports aretargeting more than %D! countries worldwide" where 8iddle Aast accounted for over 2percent of our exports and the share of the extremely quality conscious in Auropean /nion"approximately 2 percent.Over the years" the Indian 889 textile sector has built-up an export baseG and the share of889 textile exports in the total Indian textile export has also been raised" the share movedup from %3. ,' in 2333-3% to %%.&-' in 233%-32 and more to about %&' in 2332-3 .At present Indian exports of synthetic textiles to /0A are rising at more than +3' yearly. Ithas also been observed that export growth will be stri$ing for maFor 889 textile items afterdismantling of quota system from 233!.9urthermore" Indonesia" Horea.s export of synthetic textiles are turning down compared toprevious year. 8anufacturing capacity of Horea has declined by more than 3' in thepolyester filament sector in 2332 and in 233 and it is expected to turn down further more"which will end with a turn down in their exports of polyester filament fabrics. )ue to anti-dumping duty on the polyester filament fabrics obtained from Taiwan and Horea" countriesli$e >ra=il" gaining of more opportunity for India will exists as a larger synthetic fabricsexporter.In the world" synthetic textile trade.s share of India is also seeing increasing. The exportshare of Indian synthetic textiles in worldwide increased from 3.%%' in %+D% to %.%2' in%++% and more to about ' in 2332. This suggests the rising performance of Indian synthetictextile items in the worldwide mar$et.0till there is an opportunity to explore new mar$et segments li$e Catin America and Africaall along with maintaining the share in the established mar$ets li$e Auropean /nion and/0A. At this stage an annual growth expected to %!' for synthetic textiles and exports areexpected to touch /01 2.! billion in 233!-3! and /01 &. billion in 233+-%3.05OT analysis of the textile industry

Average cotton yarn spinning cost at Axcept spinning" all other segments are /01 2.! per $g. 5hich is lower than all predominantly in decentrali=ed sector. the countries including China The rigid labour lawsJ proving a bottlenec$ Cow wagesJ rate at 3.D! /01 per operator particularly to the garment sector. Carge hour as compared to /01 % of China and seasonal orders cannot be ta$en because the /01 of Tur$ey labour strength cannot be reduced during the /nique strength in traditional handlooms slac$ season. and handicrafts Inadequate capacity of the domestic textile 9lexible production system machinery manufacturing sector. )iverse design base >ig demand and supply gap in the training facilities in textile sector. Infrastructural bottlenec$s in terms of power" utility" road transport etc.Amployment (enerationThe textile sector itself has the potential to create %.2 crore employment opportunity over thenext five years. The government would continue to encourage growth within the textilesindustry as it holds huge potential for employment and exports.Textile 0ector ContributionJAccording to the Annual 7eport 233+-%3 of the 8inistry of Textiles" the Indian textileindustry contributes about %& per cent to industrial production" & per cent to the countrysgross domestic product :()*; and %D per cent to the country.s export earnings. It providesdirect employment to over ! million people and is the second largest provider ofemployment after agriculture. According to the 8inistry of Textiles" the cumulative 9ifth largest producer of man-made percentage of total looms as against fibre and yarn world average of %- percent and China" Lertical and hori=ontal integrated textile *a$istan and Indonesia %! percent" + value chain percent and %3 percent respectively. 0trong presence in entire textile value ?ighly fragmented and technology chain from raw material to finished goods bac$ward textile processing sector (lobally competitive spinning industry ?ighly fragmented garment industry 2 percent of shuttle less looms as Third largest producer of cotton processing %,. 0trengths 5ea$nesses 0trong and diverse raw material base 0tructural wea$nesses in weaving and %+. production of cloth during April.3+-8arch.%3 increased by ,. per cent as compared to the corresponding period of the previous year. Total textile exports increased to /01 %,.- billion during April.3+- <anuary.%3" from /01 %D.D billion during the corresponding period of the previous year" registering an increase of &.+! per cent in rupee terms. 9urther" the share oftextile exports in total exports has increased to %2. - per cent during April.3+<anuary.%3"according to the 8inistry of Textiles. As per the Index of Industrial

*roduction :II*; datareleased by the Central 0tatistical Organi=ation :C0O;" cotton textiles have registered agrowth of !.! per cent during April-8arch 233+-%3" wool" sil$ and man-made fibre textileshave registered a growth of ,.2 per cent and textile products including wearing apparel haveregistered a growth of ,.! per cent.Technical Textile 0egmentJAccording to the 8inistry of Textiles" technical textiles are an important part of the textileindustry. The 5or$ing (roup for the Aleventh 9ive @ear *lan has estimated the mar$et si=eof technical textiles to increase from /01 !.2+ billion in 233--3D to /01%3.billion in 23%%-%2" without any regulatory framewor$ and to /01 %!.%- billion with regulatory framewor$.The 0cheme for (rowth and )evelopment of Technical Textiles aims to promote indigenousmanufacture of technical textile to leverage global opportunities and cater to the domesticdemand.Current 0tatusThe textile industry holds significant status in the India. Textile industry provides one of themost fundamental necessities of the people. It is an independent industry" from the basicrequirement of raw materials to the final products" with huge value-addition at every stage ofprocessing.Today textile sector accounts for nearly %&' of the total industrial output. Indian fabric is indemand with its ethnic" earthly colored and many textures. The textile sector accounts about 3' in the total export. This conveys that it holds potential if one is ready to innovate.The textile industry is the largest industry in terms of employment economy" expected togenerate %2 million new Fobs by 23%3. It generates massive potential for employment in thesectors from agricultural to industrial. Amployment opportunities are created when cotton iscultivated. It does not need any exclusive (overnment support even at present to go further. 23. Only thing needed is to give some directions to organi=e people to get enough share of theprofit to spearhead development.0egmentsTextile industry is constituted of the following segments 7eadymade (arments Cotton Textiles including ?andlooms :8illmade I *owerloomI ?andloom; 8an-made Textiles 0il$ Textiles 5oollen Textiles ?andicrafts including Carpets Coir <uteThe cottage industry with handlooms" with the cheapest of threads" produces average dressmaterial" which costs only about 233 I47 featuring fine floral and other patterns. It is notnecessary to add any design to it. The women of the house spin the thread" and weave a piecein about a wee$.It is an established fact that small and irregular apparel production can be profitable byproviding affordable casual wear and leisure garments varieties.4ow" one may as$" where from the economy and the large profit comes in if the lowest endof the chain does not get paid with minimum per day labour charge. It is an irony of course.5hat people

at the upper stratum of the chain do is" to apply this fabric into a design withsome imagination and earn in millions. The straight - yards simple saree" drape in with ablouse with embroideries and bead wor$" then it becomes a designerQRs ensemble. 9or anaverage person" it can be a slant cut while giving it a shape" which can double the profit.8aybe" the 3 ' credit that the industry is ta$ing for its contribution to Indian economy asgood as -3 ' this way. Though it is an industry" it has to innovate to prosper. It has all theingredients to go ahead.Textile exports are targeted to reach 1!3 billion by 23%3" 12! billion of which will go to the/0. Other mar$ets include /AA" /H" (ermany" 9rance" Italy" 7ussia" Canada" >angladeshand <apan. The name of these countries with their bac$ground can give thousands of insights 2%. to a thin$ing mind. The slant cut that will be producing a readymade garment will sell at aprice of -33 Indian rupees" ma$ing the value addition to be profitable by 33 '.Currently" because of the lifting up of the import restrictions of the multi-fibre arrangement:89A; since %st <anuary" 233! under the 5orld Trade Organi=ation :5TO; Agreement onTextiles and Clothing" the mar$et has become competitiveG on closer loo$ however" it soundsan opportunity because better material will be possible with the traditional inputs so faravailable with the Indian mar$et.At present" the textile industry is undergoing a substantial re-orientation towards other thenclothing segments of textile sector" which is commonly called as technical textiles. It ismoving vertically with an average growing rate of nearly two times of textiles for clothingapplications and now account for more than half of the total textile output. The processes inma$ing technical textiles require costly machinery and s$illed wor$ers.The application that comes under technical textiles are filtration" bed sheets and abrasivematerials" healthcare upholstery and furniture" bloodabsorbing materials and thermalprotection" adhesive tape" seatbelts" and other speciali=ed application and products.0trengths India enFoys benefit of having plentiful resources of raw materials. It is one of the largest producers of cotton yarn around the globe" and also there are good resources of fibres li$e polyester" sil$" viscose etc. There is wide range of cotton fibre available" and has a rapidly developing synthetic fibre industry. India has great competitiveness in spinning sector and has presence in almost all processes of the value chain. Availability of highly trained manpower in both" management and technical. The country has a huge advantage due to lower wage rates. >ecause of low labor rates the manufacturing cost in textile automatically comes down to very reasonable rates. The installed capacity of spindles in India contributes for 2&' share of the

world" and it is one of the biggest exporters of yarns in the global mar$et. ?aving modern functions and favourable fiscal policies" it accounts about 2!' of the world trade in cotton yarn. 22. The apparel industry is largest foreign exchange earning sector" contributing %2' of the countrys total exports. The garment industry is very diverse in si=e" manufacturing facility" type of apparel produced" quantity and quality of output" cost" requirement for fabric etc. It comprises suppliers of ready-made garments for both" domestic or export mar$ets.5ea$ness8assive 9ragmentationJA maFor loop-hole in Indian textile industry is its huge fragmentation in industry structure"which is led by small scale companies. )espite the government policies" which made thisdeformation" have been gradually removed now" but their impact will be seen for some timemore. 0ince most of the companies are small in si=e" the examples of industry leadership arevery few" which can be inspirational model for the rest of the industry.The industry veterans portrays the present productivity of factories at half to as low as one-third of levels" which might be attained. In many cases" smaller companies do not have thefiscal resources to enhance technology or invest in the high-end engineering of processes.The s$illed labor is cheap in absolute termsG however" most of this benefit is lost by smallcompanies.The uneven supply base also leads barriers in attaining integration between the lin$s insupply chain. This issue creates uncontrollable" unreliable and inconsistent performance.*olitical and (overnment )iversityJThe reservation of production for very small companies that was imposed with an intention tohelp out small scale companies across the country" led substantial fragmentation that distortedthe competitiveness of industry. ?owever" most of the sectors now have been de-reserved"and maFor entrepreneurs and corporate are putting-in huge amount of money in establishingbig facilities or in expansion of their existing plants.0econdly" the foreign investment was $ept out of textile and apparel production. 4ow" the(overnment has gradually eliminated these restrictions" by bringing down import duties oncapital equipment" offering foreign investors to set up manufacturing facilities in India. Inrecent years" India has provided a global manufacturing platform to other multi-national 2 . companies that manufactures other than textile productsG it can certainly provide a base fortextiles and apparel companies.)espite some motivating step ta$en by the government" other problems still sustains li$evarious taxes and excise imbalances due to diversification into ! states and /nionTerritories.

?owever" an outline of LAT is being implemented in place of all other taxdiversifications" which will clear these imbalances once it is imposed fully.Cabour CawsJIn India" labour laws are still found to be relatively unfavorable to the trades" with companieshaving not more than ideal model to follow a hire and fire policy. Aven the companies haveoften bro$en their business down into small units to avoid any trouble created by labourunioni=ation.In past few years" there has been movement gradually towards reforming labour laws" and itis anticipated that this movement will uphold the environment more favourable.)istant (eographic CocationJThere are some high-level disadvantages for India due to its geographic location. 9or theforeign companies" it has a global logistics disadvantage due the shipping cost is higher andalso ta$es much more time comparing to some other manufacturing countries li$e 8exico"Tur$ey" China etc. The inbound freight traffic has been also low" which affects cost ofshipping - though" movement of containers are not at reasonable costs.Cac$ of trade membershipsJIndia is serious lac$ing in trade pact memberships" which leads to restricted access to theother maFor mar$ets. This issue made others to impose quota and duty" which put scissors onthe sourcing quantities from India.OpportunitiesIt is anticipated that Indias textile industry is li$ely to do much better. 0ince the consumptionof domestic fibre is low" the growth in domestic consumption in tandem is anticipated with()* of - to , ' and this would support the growth of the local textile mar$et at about - to D' a year. 2&. India can also grab opportunities in the export mar$et. The industry has the potential ofattaining 1 &bn export earnings by the year 23%3. The regulatory polices is helping out toenhance infrastructures of apparel par$s" 0peciali=ed textile par$s" A*Ks and AO/s.The (overnment support has ensured fast consumption of clothing as well as of fibre. Asingle rate will now be prevalent throughout the country.The Indian manufacturers and suppliers are improving design s$ills" which include differentfabrics according to different mar$ets. Indian fashion industry and fashion designers aremar$ing their name at international platform. Indian sil$ industry that is $nown for its fineand exclusive brocades" is also adding massive strength to the textile industry.The industry is being moderni=ed via an exclusive scheme" which has set aside 1!bn forinvestment in improvisation of machinery. International brands" such as Cevis" 5al-8art" <C*enny" (ap" 8ar$s # 0pencer and other industry giants are sourcing more and more fabricsand garments from India. Alone 5al-8art had purchased products worth 1233mn last yearand plans to increase buying up to

1 bn in the coming year. The clothing giant from Aurope"(A* is also sourcing from India.AnticipationAs a result of various initiatives ta$en by the government" there has been new investment of7s.!3"333 crore in the textile industry in the last five years. 4ine textile maFors invested7s.2"-33 crore and plan to invest another 7s.-"&33 crore. 9urther" Indias cotton productionincreased by !D' over the last five yearsG and million additional spindles and 3"333shuttle-less looms were installed.9orecast till 23%3 for textiles by the government along with the industry and Axport*romotion Councils is to attain double the ()*" and the export is li$ely attain 1,!bn. Theindustry is anticipated to generate %2mn new Fobs in various sectors.7ecent TrendsThe mood in the Indian textile industry given the phase-out of the quota regime of the 8ulti-9ibre Arrangement :89A; is upbeat with new investment flowing in and increased orders forthe industry as a result of which capacities are fully boo$ed up to April 233!. As a result ofvarious initiatives ta$en by the government" there has been new investment of 7s.!33 billionin the textile industry in the last five years. 4ine textile maFors invested 7s.2- billion and 2!. plan to invest another 7s.-& billion. 9urther" Indias cotton production increased by !D' overthe last five yearsG and million additional spindles and 3"333 shuttles-less looms wereinstalled.The industry expects investment of 7s.%"&33 billion in this sector in the post-89A phase. ALision 23%2 for textiles formulated by the government after intensive interaction with theindustry and Axport *romotion Councils to capitalise on the upbeat mood aims to increaseIndias share in worlds textile trade from the current &' to ,' by 23%2 and to achieve exportvalue of /0 1 !3 billion by 23%2 Lision 23%2 for textiles envisages growth in Indian textileeconomy from the current /0 1 D billion to 1 ,! billion by 23%2G creation of %2 million newFobs in the textile sectorG and modernisation and consolidation for creating a globallycompetitive textile industry. The textile industry is undergoing a maFor reorientation towardsnonclothing applications of textiles" $nown as technical textiles" which are growing roughlyat twice rate of textiles for clothing applications and now account for more than half of totaltextile production. The processes involved in producing technical textiles require expensiveequipments and s$illed wor$ers and are" for the moment" concentrated in developedcountries. Technical textiles have many applications including bed sheetsG filtration andabrasive materialsG furniture and healthcare upholsteryG thermal protection and blood-absorbing materialsG seatbeltsG adhesive tape" and multiple other speciali=ed products andapplications.

To enable 0mall To equip the textile industry to withstand the pressures of import penetration" and maintain dominance of the growing domestic mar$et. To secure a D percent share in global textile trade by the end of the Aleventh 9ive @ear *lan. To ensure the growth of the Indian textile industry at %percent per annum in value terms" to /01 %%! billion" by the end of the Aleventh 9ive @ear *lan. To build world class" state-of-the-art" manufacturing capacities and achieve a predominant global standing in manufacture and export of textiles and clothing. 2-. Lision 0tatement for textile industry:233D-23%2; # 8edium Anterprises :08As; to achieve competitiveness to face the global scenario with confidence. To provide a conducive policy environment which will encourage innovation" augment 72D. # To establish the Indian textiles industry as a producer of internationally competitive value added products.) efforts" and enhance productivity through the upgradation of technology" manufacturing processes and the development of human resources. 2,. 9uture of Textile Industry in IndiaThe textile industry in India is one of the flourishing sectors of Indian economy. It contributesmore than % ' to industrial output" %-.- ' to export revenues and &' to the nation.s ()*.In the year 23%3" the industry is estimated to produce %2 million Fobs with an investment of/01 - billion in the fields of textiles equipments and structure" and garment manufacturingby the end of 23%!./nion 8inistry of Textiles certified Apparel Axport *romotion Council :AA*C; has ta$en theresponsibility to motivate the foreign investors to invest in Indian Textile industry byexhibiting it massive unexplored domestic mar$et. It has also formulated and endorsed themotto of Ncome" invest" produce and sell in India. /nder this the ministry has decided tosend it representatives to (ermany" 0wit=erland" 9rance" Italy and /0. The obFective is totrigger the foreign investment towards instituting textile units in India by offering numerousallowances to global investor li$e low-priced wor$force and intellectual right fortification.The government of India has also ta$en few initiatives to promote the textile industry bypermitting %33' 9oreign )irect Investment in the mar$et. Owing to the upright and straightincorporated textiles price chain" the Indian textile industry symboli=es a strong existence inthe complete value chain from raw commodities to finished products. The 0ynthetic and7ayon Textile Axport *romotion Council :07TA*C; has ta$en all the required steps to meetthe target of doubling the synthetic textile exports in

India to /01 -.2 billion by sei=ing &'of mar$et share by 9@ 23%%-%2.(lobal Textile 8ar$et OverviewThe global textile mar$et value is estimated to be /01 &.!3 trillion during the year 233,. It isobserved that clothing accounted for about -3' of the mar$et" while textile accounted for thebalance &3'. The global textile industry grew at an estimated average annual rate of about2.!' during 2333-233,. The global slowdown has also affected Textile industry adversely.The global fibre demand has decreased by one percent in 233,. It is also observed that theglobal textile and clothing industry can be broadly divided into 4atural 9ibre and 8anmade9ibre industry. The 4atural 9ibre industry includes Cotton" 5ool" 0il$ and <uteG while themanmade 9ibre Industry includes *olyamides" *olyester" *olyethylene" Liscose and Acrylic.(lobal 9ibre 0cenario 2+. The global fibre demand in 233 was -&% Cacs 8T. The demand for fibre grew at a CA(7of !.3!' to reach an estimated ,3D.!3 Cacs 8T during 233,. It is noted that during the sameperiod" demand for natural fibre grew at a CA(7 of &.-!'" while the demand for manmadefibre grew at CA(7 of !. ,'.*9@ )emand in IndiaThe domestic demand for *9@ stood at %3%&D!! Tons during the year 233 . The demand for*9@ grew at CA(7 of &.2%' to reach an estimated %2,,!2 Tons by the years 233,.*9@ industry" as we $now" had faced difficult mar$et conditions during the years %+++-2332due to excess capacity over demand which lead to cut throat unhealthy competition causingsubstantial erosion in profitability of these companies. ?owever" as now new capacities cameup during this period" the gap between supply and demand got gradually bridged up and *O@manufacturing unitsIcompanies are doing reasonably well since beginning of 2332 and areexpected to do much better during the next few years in view of the sustained demandgrowth.As per detailed survey conducted by C7I0I49AC the domestic *olyester industry is li$elyto witness robust demand growth and higher profit margins in the next five years due to thefollowing positive factors favouring *olyester Industry. *rice Competitiveness of *olyesterJ vi=-a-vi= other substitutes li$e cotton" sil$ and woollen yarns. Axcise duty reduction to encourage demandJ Axcise duty on *O@ has been progressively reduced over the previous few years to %-' and is expected to be reduced further which will further increase the price competitiveness of *O@. Increase of *9@ in non-appeal segmentsJ In India" fibre is mostly used for textile applications i.e. + ' and only D' for nonapparel applications li$e home textiles" automotive an industrial segments as against !+' worldwide. The demand of non- apparel segment is expected to

grow S 23' p.a. as *olyester offers high tenacity an strength which is most suitable for such applications. Cower per capita consumptionJ The average per capita consumption :*CC; of fabric in India is much lower than in its neighbouring countries. India has a huge potential mar$et" given that its *CC is as low as %.& $g as compared China :! $gs;" *a$istan : 3. $gs; and Indonesia :! $gs;. India has the advantage of a large an growing domestic mar$et" and a good ()* growth. 7apid urbani=ationJ higher spend on clothingJ In India" out of the total population" about D3' is rural. >ehaviour patterns suggest that most of the fabric demand in this segment is need-based. The urban demand" on the other hand" is also driven by fashion trends and favours more sophisticated textiles" and variety in designs and colours. The average urban spend on apparel is higher than rural spend. ?owever" over the years" the clothing pattern in India has shifted. 8ens clothing consumption has moved from the traditional cotton based wear to synthetic fabrics. Cotton dhotis are giving way to trousers :mostly made of polyester or polyester blends;. Ci$ewise" women are moving from cotton saris to synthetic sarisIdresses. Cevy of Anti-dumping duty on import of *O@ to lower threats of import leading to availability of better contribution to domestic manufacturers. 7apid additions in downstream processing facilities leading to incremental demand. 8anufacturing of manmade fibres globally is getting shifted mainly to China and India. As Chinas domestic consumption almost matches its production" India will be able to increase its presence in the International mar$et.Heeping in view the strong fundamentals mentioned above" C7I0I49AC has proFected the*O@ industry grew at a healthy D.,' Compounded Annual (rowth 7ate :CA(7;.7aising concern over Indias share in the /0 imports of technical textiles and nonwovenfabric which is way behind China" industry body 9icci today said domestic industry needsresearch and development :7#); support.TIndias share in the /0 imports of special purpose fabric :technical textiles; and nonwovenfabrics was merely 2.- per cent and %.2 per cent" respectively in 233+ compared to Chinasshare of %! per cent and %2 per cent"T a 9icci study said.India needs to strengthen its capabilities to tap this growing mar$et as technology-intensiveproducts are the future" it said.The study said there is a need to formulate a comprehensive research and development:7#); policy for the Indian textile industry. The chamber has submitted itsrecommendations to the 8inistry of Textiles in this regard. The study pointed out that only a

%. small portion of revenue of the Indian textile industry is derived by innovative or technologyintensive products. TThe policy should aim at increasing the countrys share of advancetechnology-based products and high value-added items in global mar$et to seven per cent innext five years from less than two percent currently.The chamber has also recommended setting-up of a 4ational Textiles 7esearch Council withseed money of 7s 3 crore and an annual grant of 7s %3 crore. The council could be the apexbody for underta$ing and providing direction to research in textiles in the country" the studysaid.9icci said that the policy should provide a special focus on eco-friendly textiles that wouldhelp in reducing carbon footprint. T)evelopment of eco-friendly and sustainable lin$ages is$ey to competitiveness. Also" the competitive edge for Indian textile industry will come fromadoption of new and advance materials with functional properties :li$e anti-microbial fabricsfor patients dress; in the textiles sector"T it said.(overnment Initiative for Textile IndustryJAccording to the 8inistry of Textiles" investment under the Technology /pgradation 9und0chemes :T/90; has been increasing steadily. )uring the year 233+-%3" %,+- applicationshave been sanctioned at a proFect cost of /01 !.2 billion. The cumulative progress as on)ecember %" 233+" includes 2D"&DD applications sanctioned" which has triggered investmentof /01 &!.! billion and amount sanctioned under T/90 is /01 %,.+ billion of which /01%-.& billion has been disbursed so far till the end of April" 23%3.8oreover" in 8ay 23%3" the 8inistry of Textiles informed a parliamentary panel that itproposes to allocate /01 D,!.2 million for the moderni=ation of the textile industry.The 0cheme for Integrated Textile *ar$ :0IT*; was approved in <uly 233! to facilitate settingup of textiles par$s with world class infrastructure facilities. &3 textiles par$ proFects havebeen sanctioned under the 0IT*. According to the 8inister of 0tate for Textiles" *anabaa$aCa$shmi" under the 0IT*" a cumulative expenditure of /01 23&. million has been incurredagainst allocation of /01 223.D million in the last three years.In the /nion >udget 23%3-%% presented in 9ebruary 23%3" the 9inance 8inister made thefollowing announcements to benefit the textile industryJ 2. The central plan outlay for the industry has been enhanced to /01 %.3 billion. Of this /01 !2%.& million is for T/90" /01 D- million for 0IT*" /01 ,3.2 million for handlooms" /0 1 -+. million for handicrafts and /01 +,.& million for sericulture. Allocation for textiles and Fute industry is /01 D% .& million. The total allocation for village and small enterprises sector which include handicrafts and handlooms is /01 2%3. million. /01 %.! million has

been provided for development of mega clusters in handlooms" handicrafts and powerloom sectors. Customs duty at & per cent for import of readymade garments for retail sales has been withdrawn. The micro small medium enterprises in textiles sector have been given full CA4LAT credit on capital goods in one installment in the year of receipt of such goods and the facility of payment of excise duty in quarterly basis.InvestmentsAccording to the 8inister for Textiles" 8r )ayanidhi 8aran" around /01 !. ! billion offoreign investment is expected to be made in India in the textile sector over the next fiveyears.The textiles industry has attracted foreign direct investment :9)I; worth /01 ,%D.2- millionbetween April 2333 and 8arch 23%3" according to data released by the )epartment ofIndustrial *olicy and *romotion. 0 Humars 4ationwide has formed a Foint venture :<L; with )onna Haran International to design" produce and distribute the entire range of )H4@ menswear apparel across the world except <apan for %3 years. The new venture will invest /01 2! million for expansion of )onna Haran.s menswear brand and expects to record sales of about /01 %&3 million in the next three years. The Andhra *radesh government has allocated over %333 acres of land for the >randix India Apparel City :>IAC; in the state.s special economic =one :0AK;" which was inaugurated in 8ay 23%3. The apparel city is expected to attract an investment of /01 %.2 billion :around 7s !"&33 crore;. *rivate equity firms T*( and >ain Capital have pic$ed up sta$es in children apparel retailer Cilliput Hidswear for /01 2D million and /01 -3.D million respectively. . Italian sportswear ma$er Cotto is planning to invest /01 %3 million over the next five years to capture D per cent of India.s branded sports apparel and equipment mar$et. The brand" which started its stand-alone retail chain in India in 233," has % stand- alone stores across the country and plans to open 233 more such stores by 23%!.5orlds leading lingerie brand" (ermany-based" Triumph International" plans to invest over/01 2%D million in India to open %2 more flagship outlets and 3 additional A*0 :Axclusive*artner 0tores; during 23%3.(overnment policies relating to textile industries in IndiaThe Indian textile industry is one of the largest industries in the world. The 8inistry ofTextiles in India has formulated numerous policies and schemes for the development of thetextile industry in India. 0ome of them are detailed in the following sections.4ational Textile *olicyThe 4ational Textile *olicy was formulated $eeping in mind the following obFectivesJ )evelopment of the textile sector in India in order to nurture and maintain its position in the global arena as the leading manufacturer and exporter of clothing. 8aintenance of a

leading position in the domestic mar$et by doing away with import penetration. InFecting competitive spirit by the liberalisation of stringent controls. Ancouraging 9oreign )irect Investment as well as research and development in this sector. 0tressing on the diversification of production and its /pgradation ta$ing into consideration the environmental concerns. )evelopment of a firm multi-fibre base along with the s$ill of the weavers and the craftsmen.0uch goals are set to meet the following targetsJ The si=e of textile and apparel exports must reach a level of /0 1!3 billion by the year 23%3. The Technology /pgradation 9und 0cheme should be implemented in a strict manner. &. The garments industry should be removed from the list of the small scale industry sector. The handloom industry should be boosted and encouraged to enter into foreign ventures so as to compete globally. The 4ational Textile *olicy has also formulated rules pertaining to certain specific sectors. 0ome of the most important items in the agenda happen to be the availability and productivity along with the quality of the raw materials. 0pecial care is also ta$en to curb the fluctuating price of raw materials. 0teps have also been ta$en to raise sil$ to the international standard.*reamble To comprehend the purpose of textile industry that is to provide one the most basic needs of the people and promote its sustained growth to improve the quality of life. To ac$nowledge textile industry as a self-reliant industry" from producing raw materials to delivery of finished productsG and its maFor contribution to the economy of the country. To understand its immense potentiality for creating employment opportunities in significant sectors li$e agriculture" industry" organi=ed sector" decentrali=ed sector" urban areas and rural areas" specifically for women and deprived. To recogni=e the Textile *olicy of %+,!" this boosted the annual growth rate of cloth production by D.% '" export of textile by % . 2' and per capita availability of fabrics by .-'. To analy=e the issues and problems of textile industry and the guidelines provided by the expert committee set up for this specific purpose. To give a different specification to the obFectives and thrust areas of textile industry. To produce good quality cloth for fulfilling the demands of the people with reasonable prices. To maintain a competitive global mar$etThrust areas(overnment of India is trying to promote textile industry by giving emphasis on several areasof textile" which are as belowJ Innovative mar$eting strategies !. )iversification of product Anhancement of textile oriented technology 6uality awareness Intensifying raw materials (rowth of productivity Increase

in exports 9inancing arrangements Creating employment opportunities ?uman 7esource )evelopmentAfforts(overnment of India has set some targets to intensify and promote textile industry. Tomateriali=e these targets" efforts are being made" which are as followsJ Textile and apparel exports will reach the /0 1 D3 billion mar$ by 23%! All manufacturing segments of textile industry will come under T/90 : Technology /pgradation 9und 0cheme; Increase the quality and productivity of cotton. The target is to increase !3' productivity and maintain the quality to international standards Astablish the Technology 8ission on Fute with an obFective to increase cotton productivity of the country Ancourage private organi=ation to provide financial support for the textile industry *romote private sectors for establishing a world class textile industry Ancourage handloom industry for producing value added items Ancourage private sectors to set up a world class textile industry comprising various textile processing units in different parts of India 7egenerate functions of the T7A :Textile 7esearch Associations; to stress on research wor$s.(overnment policy on cotton and man-made fiber -. One of the principal targets of the government policy is to enhance the quality and productionof cotton and man-made fiber. 8inistry of Agriculture" 8inistry of Textiles" cotton growingstates are primarily responsible for implementing this target.Other thrust areas %. Information TechnologyJ Information technology plays a significant role behind the development of textile industry in India. IT :Information Technology; can promote to establish a sound commercial networ$ for the textile industry to prosper. 2. ?uman 7esource )evelopmentJ Affective utili=ation of human resource can strengthen this textile industry to a large extent. (overnment of India has adopted some effective policies to properly utili=e the manpower of the country in favour of the textile industry. . 9inancing arrangementJ (overnment of India is also trying to encourage talented Indian designers and technologists to wor$ for Indian textile industry and accordingly government is setting up venture capital fund in collaboration with financial establishments.Acts0ome of the maFor acts relating to textile industry include Central 0il$ >oard Act" %+&, The Textiles Committee Act" %+- The ?andlooms Act" %+,! Cotton Control Order" %+,The Textile /nderta$ings Act" %++!(overnment of India is earnestly trying to provide all the relevant facilities for the textileindustry to utili=e its full potential and achieve the target. The textile industry is presentlyexperiencing an average annual growth rate of +-%3' and is expected to grow at a rate of%-' in value"

which will eventually reach the target of /0 1 %%! billion by 23%2. Theclothing and apparel sector are expected to grow at a rate of 2% 't in value terms. D. Tariff policyIndia # /0 have reached on an Agreement for reciprocal mar$et access commitments forTextiles and Apparel with the negotiation of the 5TO Agreement on Textile # Clothing. Itprovides elimination of 6uota system of Textiles # Apparel from %st <anuary 233!./nder Indo-/0 Agreement of %st <anuary %++!" India agreed to reduce tariffs on Textile #apparel and remove all the restrictions on these products.9rom %st April 2333" (overnment of India reduced tariffs on 8anmade 9ibers # 9ilament @arns from !' to 23' Cotton @arn from 2!' to 23' 0pun" >lended" and 5oolen @arn from &3' to 23 'India agreed to bind its tariffs on 2-! textile # apparel products :Textured @arns of 4ylon #*olyester" 9ilament 9abrics" 0portswear" and ?ome Textiles.;Apparel products are free from Axcise )uties # various Taxes.(rey 9abrics and certain Cotton @arns are exempt from basic Axcise )uty.Customs duty on *olyester 9ilament @arns is reduced from %3' to D.!'. )uty on other9ilament yarns will be remain at %3'.Customs duty on *olyester 0taple fibers is reduced from %3' to D.!'. )uty on other 8an8ade 0taple fibers will be remain at %3'.Customs duty on 7aw 8aterials such as )8T" *TA and 8A( reduced from %3' to D.!'.9or 0mall 0cale Industries there is 9ull Axemption Cimit being increased from 7s.% crore to7s.%.!3 crores.8ost of the products fall under ?0 code -% and -2 carry an import duty of !-., ' whichincludes 3' basic duty" %-' additional duty and & per cent special additional duty.Axcise duty on 4ylon Chips has been reduced from %-' to %2'.Optional excise duty on 4ylon 9ish 4et 9abrics is increased from ,' to %2'. ,. Axcise )uty Axemption on specified Textile 8achinery Items is withdrawn and ,' Axcise)uty is imposed.C0T rate reduced from &' to ' with effect from April %" 233D.7emoval of surcharge on income tax on all firms and companies with a taxable income of7s.% crore or less.Import CicensingJIndia has liberali=ed its Import regime for Textiles and apparel" but some of the part is stilllimited for mar$et access. Currently" there is no import restriction for yarns # fabrics items.Apparel # 8ade-up textiles goods require a 0pecial Import Cicense :0IC;. (ovt. revisedAxim *olicy on %st 8arch %+++ by eliminating Import Cicensing 7equirements for ,+&consumer goods" agriculture products and textiles. On 2,th )ecember %+++ India and /ssigned an Agreement for the elimination of import restrictions of %"&2+ agriculture" textiles"consumer goods

and apparel. India removed restrictions on D%! tariff items as of %st April2333.Custom *roceduresJ8ar$ing" Cabelling" and *ac$aging 7equirementsJ 8ar$ing" Cabelling" and *ac$aging7equirements for Textile products are technically complex and difficult to implement.According to textile regulation passed on 22nd <uly %++, by (OI" @arns" and 9abrics to havethe statutory mar$ings and these mar$ings should not mislead the consumers. 9or instance"Cloths must be remar$ed with the name # address of manufacturer" a description of cloth"sort number" length in meters and width in centimetres" and washing instructions. The 8anmade fiber cloth must indicate whether it is made by spun or filament yarn. The month #year of pac$aging" the exact composition of cloth. The 8ar$ing must appear on the face plateof each piece of cloth. The language for mar$ing must be in ?indi and Anglish withinternational numerals.ABI8 *oliciesJ)uty Antitlement *assboo$ 0chemeJ )A*0 is available for Indian Axport Companies andTraders on a *re-Axport and *ostAxport basis. *re-Axport credit requires the beneficiaryfirm has exported during the preceding -year period. The *ost-Axport credit is a transferable +. credit that exporters of finished goods can use to pay or offset custom duties on imports ofany unrestricted goods.Axport *romotion Capital (oods 0chemeJ This scheme is available to export companies andtraders who provide the (OI with information about which type of goods and what value ofCapital (oods they will import. And they also inform what will be the outcome of exportthey expect to produce from those imports. )epending upon the export commitment (OIprovides them a license to import capital goods duty-free or preferential rates of duty.*re and *ost 0hipment 9inancingJ The 7eserve >an$ of India provides Indian Axporters *re-0hipment 9inancing through commercial ban$s for purchasing raw materials and pac$agingmaterials by presenting Cetter of Credit. 7>I also provides *ost-0hipment 9inancing throughcommercial ban$s at preferential rates by presenting export documents.Axport and 0pecial Aconomic KonesJ (ovt. of India has established Axport *rocessing Kones:A*Ks; and 0pecial Aconomic Kones :0AKs;. In A*Ks units can import goods free of customduty. There is !-year tax holiday to any industrial unit in A*Ks. (ovt. has allowed %33'9oreign ownership of units under A*Ks and 0AKs. The (ovt. considers 0AKs as foreignterritory for trade and tariff purpose. /nits under 0AKs may engage in 8anufacturing"Trading and 0ervices. /nits are exempt from routine chec$ing of exports by customs" andthey can sell in the domestic mar$et on payment of duty as applicable to imported goods.)uty )rawbac$ 0chemeJ The basic obFective of this scheme is to reduce the indirect

taxes onexports. Axporters can get refund of the excise and import duty. Through this scheme theycan be more competitive and have more potential mar$et.7eform measures and *olicy initiativesJThe Textile Industry came out of 6uota 7egime of Import 7estrictions under the 8ulti 9ibreArrangement :89A;. This development came on %st <anuary 233! under the 5orld TradeOrgani=ation :5TO; Agreement on Textiles # Clothing. In an effort to increase Indias sharein the world textile mar$et" the (overnment has introduced a number of progressive steps. %33 per cent 9)I allowed through the automatic route. )e-reservation of readymade garments" hosiery and $nitwear from the 00I sector. Technology 8ission on Cotton has been launched to ma$e available quality raw material at competitive prices. &3. Technology /p gradation 9und 0cheme :T/90; has been launched to facilitate the moderni=ation and up gradation of the textiles industry. 0cheme for Integrated Textile *ar$ :0IT*; has been started to provide world-class infrastructure facilities for setting up their textile units through the *ublic *rivate *artnership model. The Indian Textile *la=a is being built" in the city of Ahmedabad to encourage exports to overseas mar$ets. !3 textile par$s are being established to enhance manufacturing capacity and increase the industrys cost competitiveness. A cluster approach for the development of the handloom sector has been adopted from the year 233!-3- onwards. 8easures have been initiated for protection of handloom items li$e >anarasi brocades" <amdani of >engal etc." under the (eographical Indications of (oods :7egistration and *rotection; Act" %+++. 0o far sanctions to register 23 items have been issued under the Act. 9or the handicraft sector" some of the new initiatives include the facility center for exporters and entrepreneurs in the *ublic *rivate *artnership :***; mode on build" own and operate model with the government meeting &3' of the total cost of setting up the centre with maximum investment of 7s. 2& la$hs. In the 5ool 0ector" a proFect in public private partnership mode was approved for setting up processing and finishing facilities for shawl manufacturers at Cudhiana in *unFab. In the <ute 0ector" the <ute Technology 8ission was started during the year 233--3D with 8ini 8issions being implemented by the 8inistry. The focus of the mission is on improvement of the yield and quality of <ute 9ibre" establishing mar$et infrastructure" storage godowns" developing prototypes of machinery with private sector involvement" development of human resources for the Fute industry etc.(OLA748A4T *OCICIA0" 0C?A8A0 A4) CO7*O7ATIO40 9O7*7O8OTI4( TABTICA I4)/0T7@ I4 I4)IAJThe 8ulti-9ibre Agreement :89A;

&%. The 8ulti-9ibre Agreement :89A;" that had governed the extent of textile trade betweennations since %+-2" expired on % <anuary 233!. It is expected that" post-89A" most tariffdistortions would gradually disappear and firms with robust capabilities will gain in theglobal trade of textile and apparel. The pri=e is the 1 -3 bn mar$et which is expected to growto about 1-33 bn by the year 23%3 O barely five years after the expiry of 89A.4ational Textile *olicy 23339aced with new challenges and opportunities in a changing global trade environment" the(OI unveiled its 4ational Textile *olicy 2333 :4T* 2333; on 4ovember 2" 2333. The 4T*2333 aims to improve the competitiveness of the Indian textile industry in order to attain 1!3billion per year in textile and apparel exports by 23%3.,- The 4T* 2333 opens the country.sapparel sector to large firms and allows up to %33 percent 9)I in the sector without anyexport obligation.4ational <ute *olicy-233!JThe obFectives of the policy are toJ Anable millions of Fute farmers to produce better quality Fute fibre for value added diversified Fute products and enable them to enhance per hectare yield of raw Fute substantiallyG 9acilitate the <ute 0ector to attain and sustain a pre-eminent global standing in the manufacture and export of Fute productsG Anable the Fute industry to build world class state-of-the-art manufacturing capabilities in conformity with environmental standards" and" for this purpose" to encourage 9oreign )irect Investment" as well as research and development in the sectorG 0ustain and strengthen the traditional $nowledge" s$ills" and capabilities of our weavers and craftspeople engaged in the manufacture of traditional as well as innovative Fute productsG Axpand productive employment by enabling the growth of the industryG 8a$e Information Technology :IT;" an integral part of the entire value chain of Fute and the production of Fute goods" and thereby facilitate the industry to achieve international standards in terms of quality" design" and mar$etingG &2. Increase the quantity of exports of Fute and Fute products by achieving a CA(7 of %!' per annumG Involve and ensure the active co-operation and partnership of 0tate (overnments" 9inancial Institutions" Antrepreneurs" and 9armers. Organi=ations in the fulfilment of these obFectives.Axport *romotion Capital (oods :A*C(; schemeTo promote moderni=ation of Indian industry" the (OI set up the Axport *romotion Capital(oods :A*C(; scheme" which permits a firm importing new or 0econd-hand capital goodsfor production of articles for export to enter the capital goods at preferential tariffs" providedthat the firm exports at least six times the c.i.f. value of the imported capital goods within -years. Any textile firm planning to moderni=e its operations had to

import at least 1&.-million worth of equipment to qualify for duty-free treatment under the A*C( scheme.Axport-Import *olicyThe (OI.s ABI8 policy provides for a variety of largely export-related assistance to firmsengaged in the manufacture and trade of textile products. This policy includes fiscal and othertrade and investment incentives contained in various programs)uty Antitlement *assboo$ 0cheme :)A*0;)A*0 is available to Indian export companies and traders on a pre- and post-export basis.The pre-export credit requires that the beneficiary firm has exported during the preceding year period. The post-export credit is a transferable credit that exporters of finished goods canuse to pay or offset customs duties on subsequent imports of any unrestricted products.The Agreement on Textiles and Clothing :ATC;The Agreement on Textiles and Clothing :ATC; promises abolition of all quota restrictions ininternational trade in textiles and clothing by the year 233!. This provides tremendous scopefor export expansion from developing countries.(uidelines of the revised Textile Centres Infrastructure )evelopment 0cheme :TC/)0;TCI)0 0cheme is a part of the drive to improve infrastructure facilities at potential Textilegrowth centres and therefore" aims at removing bottlenec$s in exports so as to achieve thetarget of /01 !3 billion by 23%3 as envisaged in the 4ational Textile *olicy" 2333. /nder the & . 0cheme funds can be given to CentralI 0tate (overnment )epartmentsI *ublic 0ector/nderta$ingsI Other Central I0tate (overnment.s agenciesIrecogni=ed industrial associationor entrepreneur bodies for development of infrastructure directly benefiting the textile units.The fund would not be available for individual production units.Technology /pgradation 9und 0cheme :T/90;At present" the only scheme through which (overnment can assist the industry is theTechnology /pgradation 9und 0cheme :T/90; which provides for reimbursing !' intereston the loansIfinance raised from designated financial institutions for bench mar$ed proFectsof modernisation. I)>I" 0I)>I" I9CI have been designed as nodal agencies for large andmedium small scale industry and Fute industry respectively. They have co-opted %&, leadingcommercial ban$sIcooperative ban$s and financial institutions li$e 0tate 9inanceCorporations and 0tate Industrial )evelopment Corporation etc.0cheme for Integrated Textile *ar$s :0IT*;To provide the industry with world-class infrastructure facilities for setting up their textileunits" (overnment has launched the N0cheme for Integrated Textile *ar$s :0IT*; bymerging the E0cheme for Apparel *ar$s for Axports :A*A;. and ETextile Centre Infrastructure)evelopment 0cheme :TCI)0;.. This scheme is based on *ublic-

*rivate *artnership :***;and envisages engaging of a professional agency for proFect execution. The 8inistry ofTextiles :8OT; would implement the 0cheme through 0pecial *urpose Lehicles :0*Ls;.4ational Textile Corporation Ctd. :4TC;4ational Textile Corporation Ctd. :4TC; is the single largest Textile Central *ublic 0ectorAnterprise under 8inistry of Textiles managing !2 Textile 8ills through its + 0ubsidiaryCompanies spread all over India. The headquarters of the ?olding Company is at 4ew )elhi.The strength of the group is around 22333 employees. The annual turnover of the Companyin the year 233&-3! was approximately 7s.- , crores having capacity of %% la$hs 0pindles"%!33 Cooms producing &!3 la$h Hgs of @arn and %,! la$h 8trs of cloth annually.Cotton Corporation of India Ctd. :CCI;The Cotton Corporation of India Ctd :CCI;" 8umbai" is a profit-ma$ing *ublic 0ector/nderta$ing under the 8inistry of Textiles engaged in commercial trading of cotton. The &&. CCI also underta$es 8inimum 0upport *rice Operation :80*; on behalf of the (overnmentof India.(OLA748A4T 7A(/CATIO40 A4) 0/**O7T(overnment InitiativesThe textile industry" being one of the most significant sectors in the Indian economy" hasbeen a $ey focus area for the (overnment of India. A number of policies have been put inplace to ma$e the industry more competitive. The Technology /pgradation 9und 0cheme :T/90;J 7ecognising that technology is the $ey to being competitive in the global mar$et" the (overnment of India established the Technology /pgradation 9und 0cheme :T/90; to enable firms to access low-interest loans for technology upgradation. /nder this scheme" the (overnment reimburses ! per cent of the interest rates charged by the ban$s and financial institutions" thereby ensuring credit availability for upgradation of the technology at global rates. /nder the T/9 0cheme" launched on April %" %+++" loans amounting to 7s. %&+ billion have been disbursed to -"D + applicants. In consonance with the industry" the T/9 0cheme has been continued during the Aleventh *lan :233D23%2;. Allocation for T/9 has been raised from 7s.!. ! billion in 233--3D" to 7s.+.%% billion in 233D-3,. ?andlooms will now be covered under the T/9 scheme. Integrated Textile *ar$s 0chemeJ 8anufacturing is a thrust area for the government" as Indian industry and the government see foreign companies more as partners in building domestic manufacturing capabilities rather than a threat to Indian businesses. 9ollowing this through" the Central (overnment as well as various 0tates has executed 0chemes such as" 0chemes for Integrated Textile and Apparel *ar$s. /nder the 0cheme for Integrated Textiles *ar$s :0IT*;" 2par$s have been approved so far out of 3 sanctioned. The >udget provision for

these par$s has been increased from 7s.%.,+ billion in 233--3D to 7s.&.2! billion in 233D-3,. 0cheme for ?andloomsJ 9or ?andlooms a cluster approach for the development of the handloom sector was introduced in 233!-3- and %23 clusters were selected. 2D new yarn depots are opened up till now and the ?andloom 8ar$ was launched. The (overnment proposes to ta$e up additional %33-%!3 clusters in 233D-3,. &!. ?ealth Insurance 0chemeJ The ?ealth Insurance 0cheme has so far covered "33"333 weavers and will be extended to more weavers. The scheme will also be enlarged to include ancillary wor$ers. The Corporate Catalyst India A report on Indian Textiles Industry (overnment proposed to enhance the allocation for the sector from 7s.2.&% billion in 233--3D to 7s. .2% billion next year.6uality ImprovementThe Textile Commission" under the 8inistry of Textiles" facilitates firms in the industry toimprove their quality levels and also get recognised quality certifications. Out of 2!3 textilecompanies that have been ta$en up by the Commission" % - are certified I0O +33%. The othertwo certifications that have been targeted by the Textile Commission are I0O %&333Anvironmental 8anagement 0tandards and 0A ,333 Code of Conduct 8anagement0tandards.9oreign )irect Investment :9)I; *olicy%33' 9)I is allowed in the textile sector under the automatic route. 9)I in sectors to theextent permitted under automatic route does not require any prior approval either by the(overnment of India or 7eserve >an$ of India :7>I;. The investors are only required tonotify the 7egional Office concerned of 7>I within 3 days of receipt of in word remittance.8inistry of Textiles has set up 9)I Cell to attract 9)I in the textile sector in the country. The9)I cell will operate with the following obFectivesJ o To provide assistance and advisory support :including liaison with other organisations and 0tate (overnments;. o Assist foreign companies in finding out Foint venture partners. o To sort out operational problems. o 8aintenance and monitoring of data pertaining to domestic textile production and foreign investment.9oreign Investment 0cenarioA new trend in recent years has been the arrival in India of expatriate and western designers:from 9rance" Italy" /H; who are beginning to form Foint ventures with Indian designers tocater to the domestic and export mar$ets. Italian companies are investing in capacityexpansion and stri$ing manufacturing" distribution and franchising deals with India Inc. &-. Carrera is to invest /01 2!2.D million in textile proFects in India. Although direct investmentin retail remains closed to 9)I as of now" companies have

found alternative structuresthrough which they can approach Indian consumers :examples include Cevi 0trauss" 8ar$s #0pencer" 7oyal 0porting ?ouse" Adidas" 4i$e and 7eebo$ in fashion products;. There iscertainly a broader opportunity to Ngrow the mar$et from inside as companies can freely setup fully-owned sourcing :liaison; offices" as well as mar$eting operations. The number of9)I approved between %++% and 233& was -&% which amount to over /01 %.32 billion.Other legislations regarding the Textile sector8inistry of finance has added %-! new textile products under duty drawbac$ schedule. Thenew products included wool tops" cotton yarn" acrylic yarn" viscose yarn" various blendedyarnIfabrics" fishing nets etc. 9urther" the existing entries in the drawbac$ schedule relating togarments have been expanded to create separate entries of garments made up of:%; Cotton:2; 8an-made fibre blend and: ; 8890eparate rates have been prescribed for these categories of garments on the basis ofcomposition of textiles. After the phasing out of quota regime under the 89A" India canenvisage its textile sector becoming 1%33 billion industry by 23%3. This will include exportsof 1!3 billion. The proposed targets would be achieved provided reforms are initiated intextile sector and local manufacturers adopt measures to improve their competitiveness. A !-pronged strategy aiming to attract 9)I by ma$ing reforms in local mar$et" replacement ofexisting indirect taxes with a single nationwide LAT" liberali=ation of contract norms fortextile and garments units" elimination of restrictions that cause poor operational andorgani=ational performance of manufacturers" was suggested.The /nion 8inister said that the >oard for Industrial and 9inancial 7econstruction :>I97;had approved rehabilitation schemes for sic$ 4TC mills at a cost of 7s + billion. Of the --mills" -! unviable mills have been closed after implementing Loluntary 7etirement 0cheme:L70; to all employees. According to him" the government has already constituted assets salecommittees comprising representatives of Central and state governments" operative agency">I97" 4TC and the concerned 4TC subsidiary to effect sale of assets through open tender &D. system. *roposals for moderni=ation of 4TC mills have been made to the consultativecommittee members" including formation of a committee of experts to improve managementof these mills. Aven the present status of Fute industry was under the scanner of theconsultative committee.The (overnment had announced change from the value-based drawbac$ rate hithertofollowed to a weight-based structure for textile exports that will discourage raw materialexports and also curtail the scope for misusing the drawbac$ claims by

boosting invoice valueof exports. 4C)AB has launched its sil$ contract :raw sil$ and cocoon;. 5ith this launch" thetotal number of products offered by 4C)AB goes up to 2D. The launch of the sil$ contractwill offer the entire suite of fibres to the entire value chain ranging from farmers to textilemills. 5ith the obFective of protecting the interests of those affected by the 5TO agreementsand globalisation process" (overnment of India Fointly with 4C)AB has adopted a policy ofencouraging future contracts of sil$. The (overnment will run during the Aleventh *lanperiod a 0cheme for the )evelopment and (rowth of Technical Textiles :0)(T; at an outlayof 7s +-3 million to promote indigenous manufacture of technical textiles. The schemewould also provide infrastructure support by setting up centres of excellence for manufactureof technical textiles.?ighlights of the 9oreign Trade *olicyThe ?on.ble /nion 8inister of Commerce # Industry" (overnment of India" had announcedthe 9oreign Trade *olicy on ,th April.3!. 0ome of the 0alient 9eatures I ?ighlights of theproposals pertaining to Textile Industry in general and ?andlooms in particular are. %. 9ormulation of Inter-0tate trade Council to engage 0tate (overnments in providing an enabling environment for promotion of international trade. 2. *roposed removal of export cess on export of all agricultural and plantation commodities levied under various Commodity >oard Acts. . 7eali=ing that great potential and opportunities exist in the manufacturing sector" Annual supplement introduces a number of measures to enhance the competitiveness of manufacturing sector. 4o safeguard and antidumping duty to be levied on inputs under advance licence for deemed export supplies made to IC> :International Competitive >idding; proFects. &,. To promote accelerated export performance" balance export obligation will be waived for the exporters completing D!' of their export obligation in half the prescribed export obligation period. 7educed export obligation and enhanced time available for exports under the A*C( 0cheme for the imports made by the agriculture sector. 7educed obligation at six times the duty saved amount as against the normal eight times for imports made by the 00I sectors under the A*C( 0cheme. A*C( 0cheme will facilitate the moderni=ation of retail sector by allowing concessional duty imports. 9or this the retailer should have a minimum covered shopping area of %333 square meters.&. Axport of poultry and dairy products and their value added products facilitated by granting them duty credit S !' of the 9O> value of the exports under the Lishesh Hrishi /paF @oFna.!. *ac$age has been developed for moderni=ing the marine sector *ac$age allows duty free import of inputs based on the past export

performance" import of mono filament long line system for tuna fishing at concessional duty and establishes a self removal for clearance of waste of perishable commodities.-. (ems # <ewellery exports O Antitlement of duty free imports of samples enhanced to 7s. la$hs. 0upply of gold of 3.++! and above purity allowed for release for export purposes.D. *ac$age for AO/ sectorJ 9or units debonding from AO/.s" a simplified procedure is being wor$ed out. 0imilarly" capital goods can be transferred to other units by simply intimating Central Axcise # )evelopment Commissioner. AO/s can claim IT exemption within a period of %2 months from the date of exports.,. 7educing congestion at the maFor ports. The facility for export obligation discharge in rupee payment under the A*C( has been extended to the minor ports" IC)s and C90 also.+. *rocedural simplificationJ 0ingle common application form called Aayaat 4iryaat 9orm introduced reducing the si=e of the form by more than -3'. The categories of advance licences merged into a single category &+. Annual advance licence" which was available only to status holders" will now be available to all the exporters with some export performance. Axport obligation extension for five years under advance licence based on >I97 rehabilitation pac$age. >an$ guarantee threshold reduced for units in Agri export =ones and established service providers and a category of manufacturer exporters. 0implified clubbing norms under the advance licence and A*C( 0cheme will help exporters in regulari=ing their cases. Chartered Angineer Certificate in lieu of Central Axcise Certificate for non- excisable units and those importing spares will be accepted as installation certificate. This will reduce the transaction time. Imports made under 0erved from India 0cheme can be transferable within the group companies and managed hotels. The provision will allow bul$ sourcing and better utili=ation of the entitlement. %3. ?andloomsJ (overnment has decided to develop a trademar$ for ?andloom on lines similar to E5oolmar$. and E0il$mar$.. This will enable handloom products to develop a niche mar$et with the distinct identity. All Axport *romotion Council shall open a separate Cell to involve and encourage youth and women entrepreneurs in export effort. 8inister of Commerce and Industry invited 0uggestions on a proposal to change the names of Axport *romotion Councils to ETrade *romotion Council. All actions by Income Tax authority on )A*> benefits have been stopped by *rime 8inister with immediate effect. The matter is to be decided at economic advisory council headed by *rime 8inister in the next 3 daysAnvironmental Analysis and Concerns of Indian Textile Industry.If we analy=e the textile industry" the maFor determinants of

competitiveness are both policyand politics in the international trade and commerce. 9urther" the industry performance isinfluenced by domestic institutional" policy" infrastructure and managerial dynamics.In textile industry" voluntary initiatives such as 5orldwide 7esponsible Apparel *roduction:57A*; and Apparel Industry Initiative :AI*; are attempting to instill social and !3. environmental standards in textile and clothing sectors. It is in this Ebuyerdriven globalcommodity chain. that India has to position itself.>ased on our experience of wor$ing with the textile industry" this article is an attempt tobriefly outline the environmental concerns and identify ways to enhance internal and externalcompetitiveness of textile sector.Ci$e every product" clothes and other textiles products affect the environment to varyingdegrees throughout their life cycles" through use of chemicals" solvents and huge quantities ofwater. This apart" use of energy" solid waste and effluent discharge" emit dust" fumes" etc. tothe atmosphere are maFor environmental concerns of textile industry.>efore textiles reach the consumer" they go through many different physical and chemicalprocesses. 9or example they may be treated with chemicals to dye" ma$e them more hard-wearing or wrin$le-resistant" or less flammable.0tudies have shown that some of the chemicals used in textile industry are carcinogenic andothers may trigger allergic reactions. 0ome flame retardants that are used in certain textilescontain organic bromine compounds that are persistent :brea$ down very slowly in theenvironment;. Textile industry is $nown to use restricted chemicals such as a=o dyes andformaldehyde.8anufacturing of all variants of textiles have an impact on the environment. /sage of rawmaterial and other natural resource inputs such as water etc have not only resource depletingimpacts but release of effluents or emissions have natural resource degrading impacts. Theindustry is $nown to use large quantities of water during its processing.9or example" to grow the fiber for one cotton diaper requires %3!. gallons of water" one T-shirt needs 2!-.gallons of water" one bath towel needs &3%.& gallons of water" a man.s dressshirt requires &%&.! gallons of water" and +,D gallons of water are required for one pair ofFeans.An average integrated textile mill produces %! tons of finished cloth per day. It uses a total ofapproximately ",&3 cubic meters of water per day" including %"-,3 cubic meters forfinishing and processing" another +-3 cubic meters for steam generation" and an equivalentvolume for serving the wor$ers colony and other domestic uses of water. The water used for

!%. finishing and processing results in contaminated liquid effluent of approximately %"!33 cubicmeters per day.In Tirupur of Tamilnadu" India" annually the textile industries alone utili=e around 2,.,billion liters of ground water.9urther" usage of synthetic dyes puts environmental limitation because production of thesedyes requires strong acids" al$alis" solvents" high temperatures" and heavy metal catalysts.0ince production of these dyes need very toxic and ha=ardous chemicals.Anvironmental issues can no longer be ignored by the textiles industry and the (overnment.Indian textile industry needs to reali=e that to remain competitive" operating costs have to bereduced and environmental compliance has to be enhanced. (overnment should not onlystrive to integrate environmental goals into the national textile policy but also in the plans andprogrammes. Textile sector cannot have independent growth strategies that are bereft ofenvironmental concerns arising at various points of value chain because environmental costsare proving to be a drag on its own long term growth and development.To drive home the criticality of integrating environmental concerns Tirupur industrial clusterin Tamilnadu" India is being used as illustration.The textile industry in Tirupur was expected to achieve the targeted export of /01 !3 >illionby the year 23%3. >ut" such growth is now greatly hampered due to immense environmentaldamage due to the effluents released from the textile units to cause to the 4oyyal river"ground water system and agricultural fields mainly due to the textile wet processingindustries in Tirupur. Textile manufacturers use energy as a raw material input to themanufacturing process or for some other purpose usually referred to as non-fuel use.Alectricity consumption is increasing in textile mills. Textile manufacturers have to deal withrising energy and other supply costs. 9or e.g. )ow Chemical Co. and )u*ont both raisedprices on nearly everything they sell" from chemicals used in bathroom cleaners to free=erbags and $itchen counter tops" because of high raw materials costs./nderstanding the value chain of textile industry will enable identifying and addressing allsources of environmental impacts in a life cycle process. 0uch an integrated approach has notbeen underta$en in India on environmental impacts of textile manufacturing. A !2. comprehensive analysis of the environmental impact of textile manufacturing activity is acritical need of the hour and it needs to be initiated at the earliest" which includes an analysisof the degradation by air pollution" wind" water and other agents.A complete survey of how developments in the textile industry and consumers of its productshave affected the environment in the past

needs to be ta$en up. This should also cover themost recent solutions adopted by the industry to alleviate the problems. This is importantgiven the high textile production targets post 233!" and the ways in which the industry isresponding to the environmental challenges.9ortunately" unli$e any other country in the world" India has hand-loom sector" whereproduction is relatively environmentally benign. Thus" for Indian textile sector" the maindrivers for environmentally benign growth can beJ (rowth of hand-loom sector Competition *ressure exerted down the supply chain by the consumer 7educing production costs 8eeting current and anticipated legislative requirements Concern for the global and local environment*rofessionals at (reen 0tratos are currently part of several initiatives in the textile sector suchas promoting organic cotton and creating mar$et lin$ages for handloom sector" use ofenvironment friendly dies and promotion of energy efficiency in the textile sector. (eneral Anvironment Impacts of Textile Industries Textile processing industry is characterised not only by the large volume of water required for various unit operations but also by the variety of chemicals used for various processes. There is a long sequence of wet processing stages requiring inputs of water" chemical and energy and generating wastes at each stage. The other feature of this industry" which is a bac$bone of fashion garment" is large variation in demand of type" pattern and colour combination of fabric resulting into significant fluctuation in waste generation volume and load. Textile processing generates many waste streams" including liquid" gaseous and solid wastes" some of which may be ha=ardous. ! . The nature of the waste generated depends on the type of textile facility" the processes andtechnologies being operated" and the types of fibres and chemicals used. The textileindustry is a significant contributor to many national economies" encompassing both smalland large-scale operations worldwide. In terms of its output or production and employment"the textile industry is one of the largest industries in the world. The textile manufacturingprocess is characterised by the high consumption of resources li$e water" fuel and a varietyof chemicals in a long process sequence that generates a significant amount of waste. Thecommon practices of low process efficiency result in substantial wastage of resources and asevere damage to the environment. The main environmental problems associated withtextile industry are typically those associated with water body pollution caused by thedischarge of untreated effluents. Other environmental issues of equal importance are airemission" notably Lolatile Organic Compounds :LOC;.s and excessive noise or odour

aswell as wor$space safety.Air pollutionJ8ost processes performed in textile mills produce atmospheric emissions. (aseousemissions have been identified as the second greatest pollution problem :after effluentquality; for the textile industry. 0peculation concerning the amounts and types of airpollutants emitted from textile operations has been widespread but" generally" air emissiondata for textile manufacturing operations are not readily available. Air pollution is the mostdifficult type of pollution to sample" test" and quantify in an audit.5ater pollutionJThe textile industry uses high volumes of water throughout its operations" from the washingof fibres to bleaching" dyeing and washing of finished products. On average" approximately233 litres of water are required to produce l $g of textiles. The large volumes of wastewatergenerated also contain a wide variety of chemicals" used throughout processing. These cancause damage if not properly treated before being discharged into the environment. Of allthe steps involved in textiles processing" wet processing creates the highest volume ofwastewater.The aquatic toxicity of textile industry wastewater varies considerably among productionfacilities. The sources of aquatic toxicity can include salt" surfactants" ionic metals and their !&. metal complexes" toxic organic chemicals" biocides and toxic anions. 8ost textile dyes have low aquatic toxicity. On the other hand" surfactants and related compounds" such as detergents" emulsifiers and dispersants are used in almost each textile process and can be an important contributor to effluent aquatic toxicity" >O) and foaming. 0olid waste pollutionJ The primary residual wastes generated from the textile industry are non-ha=ardous. These include scraps of fabric and yarn" off-specification yarn and fabric and pac$aging waste. There are also wastes associated with the storage and production of yarns and textiles" such as chemical storage drums" cardboard reels for storing fabric and cones used to hold yarns for dyeing and $nitting. Cutting room waste generates a high volume of fabric scraps" which can often be reduced by increasing fabric utilisation efficiency in cutting and sewing. Cleaner production is an attractive approach to tac$le environmental problems associated with industrial production and poor material efficiency. 0ince the cleaner production approach has been successfully implemented in some areas in the textile sector" it shows that significant financial saving and environmental improvements can be made by relatively low-cost and straightforward interventions. This improves the quality of products and minimises the cost of production" enabling the branch to compete in the global mar$et. 8oreover" Cleaner *roduction also improves the company.s public image by highlighting the steps it has ta$en to protect the

environment.Cow @ields in CottonThe relatively rapid gains in productivity in the predominately rainfed Central =one since%++3 are due to technological advances that" if combined with a continuation of recentmodest growth in the 4orth and 0outh =ones" could lead to a substantial hi$e in nationalaverage yields and production. 5hile this productivity gap indicates that significant furtheron farm yield improvements are possible" a range of technical" economic" and institutionalfactors prevent reali=ation of the potential of the varieties cultivated9ollowing are the few factors which contributes towards the low yieldU )elayed 0owing. Cate sowing of cotton reduces yields by providing less optimal sunlightconditions for crop development and" in some areas" by allowing less time for pic$ing themature crop before clearing the field for the following crop. 0owing delays are caused eitherby the late arrival of seasonal rainfall needed for sowing or by delays in harvesting thepreceding crop. @ield losses associated with late sowing and shortened harvest times may be !!. reduced by new shorter duration varieties and better management" but crop competition willli$ely continue to limit yields in some areas.U 8onsoon )ependence. Arratic monsoon rainfall affects -3-D3 percent of cotton area"reducing yields through moisture stress and creating ris$ that reduces investment in seed"fertili=er" and pesticide inputs. Aven with improved varieties and management" average yieldsin the mostly rainfed Central and 0outh =ones are li$ely to remain below those achieved inother countries with more reliable rainfall.U *oor 0eed 6uality. *oor seed quality is a pervasive problem in cotton cultivation. Onlyabout ! percent of cotton area is sown with certified seed with assured varietal purity andgermination. Commercially available seeds are often of poor quality" with sale of uncertified"substandard" and second generation :92; hybrid seeds not uncommon. Although supplies ofcertified seed are generally available" financial constraints lead most farmers to use retainedseeds or lower priced uncertified seeds from the mar$et.The proliferation of cotton varieties in mar$ets and farmers. fields confounds efforts toimprove seed quality" maintain varietal purity" and improve crop management practices.7oughly %33-% 3 cotton varieties developed in both the public and private sectors are nowcultivated in India. A study by the Central Institute for Cotton 7esearch :CIC7; indicates thatthe average cotton farmer in the Central and 0outh =ones plants -& varieties on farmsaveraging about 2 hectares" a practice that greatly complicates crop and seed management.U *lant *rotection. Insect and disease infestations" including bollworms" white fly" Fassids"and leaf curl virus" are significant problems in India.s three cotton production =ones.Although per

hectare use of pesticides is higher for cotton than for any other crop" effectiveplant protection is constrained by poor farm management" pesticide subsidies that encourageindiscriminate use" and problems with pesticide quality. Improved on farm pest managementpractices" including appropriate crop rotations" pest surveillance" pesticide applications" andadoption of Integrated *est 8anagement :I*8; practices have proved difficult to implementon small" resource constrained farms.U Crop 8anagement. Carge gaps between average on farm yields and the potential ofexisting varieties also stem from poor management practices" including use of inappropriatevarieties" seed rates" seed spacing" and fertili=er dosages. As in the case of plant protection"improvement of crop management practices is complicated by the need to extendrecommended practices to large numbers of small" limited-resource farmers.U Cac$ of 0uitable Larieties. Cotton yields are affected by lac$ of varietiesV orgenotypesV suitable for some agronomic conditions. Indian scientists cite three priorities for !-. plant breeding effortsJ :%; higher yielding" short-duration" and pest-resistant cultivars for theirrigated 4orth =one" :2; higher yielding varieties for the drought-prone Central =one" and : ;varieties suited for the soils on rice fallow common in the 0outh =one.5ater 8anagement issues5ater resources need to be protected from unsustainable use and pollution O between %+D3and %++!" 2!' of the world.s freshwater ecosystems were lost. Agriculture ta$es up about-+' of global freshwater withdrawal and rice" wheat and cotton together account for !,' ofthe worldwide irrigated area" ma$ing these three crops the maFor consumers of freshwater:559" %+++;. Approximately D ' of cotton is produced in irrigated fields and only 2D'under rain-fed conditions. 8ost irrigation systems in cotton production rely on the techniqueof flood irrigation O freshwater is drawn from its source and transported to the place of itsconsumption. Cosses of freshwater can occur through evaporation" seepage and poor watermanagement. 5ater losses can be drastically cut through good water management practiceswhich are integral to the farming approach ta$en in the 9air trade cotton standard includinginput of organic matter" crop rotation" and appropriate irrigation methods :if needed;. In areasof water shortage" appropriate measures should be ta$en to improve water storage andcollection systems.>t cotton issue>t cotton is one of the variety of cotton which gives the lager yield and the less quantity ofpesticides are needed because of its inbuilt pest resistance capacity. >ut the research wascarried out and it was found that the cotton growers who are using the >t cotton at their farmneed to use more the

amount of pesticides compared to the other normal cotton growers afterthird year of the >t cotton and the yield of the cotton goes down compared to the normalcotton growers. 0o it has a maFor impact on the cotton growers and also the resistance of theinsect increases with the frequent use of >t cotton.0oil *ollution0oil in the cotton growing region and near-by region is getting polluted because of theexcessive use of the chemical pesticides resulting into the low yield. This can be avoided byusing the organic pesticides for growing the cotton.*ollution due to CintThe pollution due to lint in the cotton ginning industry is very ha=ardous to health. 8ost ofthe wor$er wor$ing at this place suffers from the lungs diseases because of the pollutionproblems. !D. 8anufacturing industries often cause a great deal of damage to the environment through therelease of both toxic and nonha=ardous wastes. As the damaging effects of chemicals becomemore apparent" our society is demanding cleaner and more efficient production methods. The/.0 Anvironmental *rotection Agency details environmental consequences" regulations" andproposed solutions in the Office of Compliance 0ector 4oteboo$ *roFectJ *rofile of theTextile Industry.*ollution Outputs5astewater is one of the largest sources of waste produced by the textile and apparelindustries. >ecause the production of textile and apparel goods requires many different steps"wastewater is produced throughout the manufacturing process. ?igh volumes of wastewaterare produced in manufacturing operations such as resi=ing" dyeing" rinsing" printing"bleaching" finishing" and cleaning. In fact" each pound of goods produced can be the sourceof approximately %! gallons of waste from dyeing and rinsing processes alone. 9acilities thatare involved in the dyeing of goods often turn out more than one million gallons ofwastewater each day.The textile and apparel industries also release waste in the form of air emissions. ?owever"the amount of polluted air produced is relatively small in comparison to other manufacturingindustries. 0mall amounts of waste are emitted at various stages of production" each stagereleasing a different type of emission. )ue to the high number of manufacturing stages" thereare many different types of air pollutants generated by these industries. >ecause there are somany different components to the emissions of these industries" it is usually difficult tocontrol and measure air pollution.5astewater and air emissions generally receive the most attention from politicians andconsumers due to their ha=ardous nature. @et" there is another set of nontoxic" residual wastesthat results from the production of textiles and apparels. A large amount of fabric waste andother scraps are left over at the end of production. 9or e.g. most

production methods wasteanywhere from 2, to - percent of fabric. 9urthermore" pac$aging materials are not alwaysable to be reused or recycled.Anvironmental *roblems !,. A number of different environmental problems have been caused by the textile and apparelindustry. As previously stated" a large amount of wastewater and polluted air is generatedduring production. A number of other problems arise that are not simply related to the outputwaste produced. 9or example" a large amount of water" energy" and other valuable resourcesare consumed during the production process. Additionally" many facilities are not as environmentally sound as they could be due to outdated equipment that is difficult and extremely expensive to replace. 8achinery is often very loud and disrupts surrounding communities.8any employees are unqualified for their Fobs and lac$ the training necessary to understandthe most efficient way of carrying out an assigned tas$. 8oreover" they do not have the s$illsneeded to improve or recogni=e harmful practices. The assistance of the government iscrucial if this industry is to continually ma$e strides in decreasing waste. ?owever" mostbusinesses are currently limited by the lac$ of support expended by the government.*revention 8ethods and *roposalsIn order to ma$e significant changes in the wastes generated by textile and apparelmanufacturing facilities" several preventative measures must be ta$en. To begin with"companies should begin to set improved regulations for the raw goods used in manufacturing.7eusable containers should be required" and the use of harmful substances should be limited.Individuals should be employed by company and industry executives to research and developnew ways of producing goods using less harmful chemicals or wholly alternative treatmentsaltogether. 0imple improvements can be made by ensuring optimal settings of equipment andthe optimal environment for the facility.Additionally" organi=ations should ta$e every step possible to reduce input amount byrecycling as much as possible and by continually updating equipment. In order to achieve anew level of environmental responsibility" better training programs for employees must beestablished. The government needs to become more involved in assisting individual facilitiesand in the regulations set forth for the industry. Organi=ations should be encouraged to createTecoT friendly goods. !+. 7egulationsCi$e any industry" textiles and apparel must adhere to several standards so that ourenvironment will be preserved. The 7esource Conservation and 7ecovery Act of %+D-regulate the treatment of ha=ardous materials and

waste. 7egulations are set for determiningwhat should be classified as a ha=ardous material" where and for how long such materials canbe stored" and treatment of the land where ha=ardous materials will be disposed.A number of debates have arisen in recent years concerning cancer rates in communitieslocated near various manufacturing facilities. The Amergency *lanning and Community7ight-To-Hnow Act addresses these issues by improving the $nowledge of possible dangersto surrounding communities. 9urthermore" the Clean 5ater Act serves to $eep Americanbodies of water safe and clean. 4o other industry act is as important to our environment. Theclosely related 0afe 5ater )rin$ing Act requires a certain level of quality in our drin$ingwater. Industry businesses are limited in the wastes they produce so that drin$ing water willnot reach a contaminated level.The Clean Air Act encourages safe emissions and is an attempt by the government toimprove air quality. The act has the ability to suggest emission standards that are apply to theentire textile industry. It also allows these emissions to be screened and companies must $eepdetailed records of their pollutants.Textile Industry 0ponsored Initiatives Concerning the AnvironmentThe American Textile *artnership brings together researchers at leading universities with the/nited 0tates )epartment of Anergy" among others. 5hile the top priority for A8TAB isconcerned with national competitiveness" some aspects of the group deal with environmentalissues. 9or instance" the Textile 7esource Conservation :T7ec; falls under the umbrella ofA8TAB. T7ecs main goal is to encourage manufacturing processes that will do as littleharm to the environment as possible. 0pecifically they aim to employ fewer input resources"without creating any net waste.Another initiative ta$ing by many companies is called the Ancouraging AnvironmentalAxcellence :A ; program. Involvement with the program is voluntary. To be considered byinclusion in the A program" companies must show a strong commitment to improving the -3. environment. (oals must be set" steps should be ta$en to prevent excessive waste andpollution" and recycling policies improved.Technological Anvironment Analysis To continue the growing investment trend in the textiles sector and to achieve a growth of %- percent in value terms" it is proposed to continue with the Technology /pgradation 9und 0cheme :T/90;" which has proved to be highly successful in increasing investment in the textiles sector. *roFect cost sanctioned under T/90 !333 3333 3333 2!333 :7s. crore; 23333 %!3 2 %!333 %3333 D &+ !333 2,+ % 23 %& , 3 233%-32 2332-3 233 -3& 233&-3! 233!-3- 233--3D :Astimated; As on %.3D.233-" proFects

worth 7s.&&"-,- crore were sanctioned under T/90. The growth of the T/90 has been significant during the last two years" registering a growth of %2 percent and %2D percent over the previous years. In order to maintain the pace of investment that has come in during the last 2 O years" it is essential to continue the Technology /pgradation 9und 0cheme :T/90; in its present form until the end of Aleventh 9ive @ear *lan. The 5or$ing (roup is of the view that even a slight modification in T/90 at this Functure may have an adverse psychological impact" disrupting the investment plans of the industry and also may result in distortion which will not be conducive for the long term growth of the industry. Aven with the capacities envisaged for the terminal year of the Aleventh 9ive @ear *lan" India will be significantly behind China in all the segments" especially spinning" weaving" processing and garmenting. Currently" over 23 percent of the total production of cotton in the country is being exported as raw cotton. Axport of cotton yarn has been simultaneously declining. Obviously" there is significant scope to convert the raw cotton currently being exported into yarn" both for the export mar$et and for domestic consumption. Investments in the downstream segments of weaving and processing is necessary to ensure that the maximum quantity of yarn produced in -%. the country is domestically converted into finished products" in order to meet theincreasing requirements of the garment industry. 0ufficient supply of yarn and fabricsinternally will reduce the dependence of the garment industry on imported yarn andfabrics. In short" if the country aims to move up the value chain in textiles" increasinginvestment is a must. T/90 has emerged as a successful instrument in leveraginginvestment in the private sector.In China" *a$istan" 0pain and several other competing countries" policy support to thetextiles and clothing industry and targets for growth in the sector have beenannounced by the (overnment. China has proposed substantial expansion during thenext five years from its present capacities" which already are about ! times that ofIndia. In order to remain competitive in the international mar$et and to withstandincreasing competition in the domestic mar$et" it is necessary to ensure the largeinvestment in moderni=ation and expansion as envisaged in this report. This will bepossible only if the T/90 continues in its present form.The interest rates currently applicable to the textiles and clothing industries of maForcompeting countries are substantially lower than the present *rimary Cending 7ate:*C7; in India. Interest rates are increasing in the country and the *C7 may continueto increase during the Aleventh *lan period. Interest rates applicable to term loans insome of the competing countries are given

belowJ:i; 0outh Horea &.!3 percent p.a.:ii; 8alaysia .!3 percent p.a.:iii; Taiwan 2.!3 percent p.a.:iv; Thailand !.33 percent p.a.As against this" the current *C7 in India is around %%.33 percent p.a.The 5or$ing (roup has aimed at %2 percent growth in production and 22 percent inexports. To achieve this growth" incremental production facilities would have to be setup. It is estimated that the requirement of funds for setting up these incrementalfacilities will be approximately 7s.%"!3"-33 crore during the Aleventh *lan period.This investment will not come without support from (overnment in the form of theextension of T/90. -2. The financial outlay during the Aleventh *lan for T/90 may appear to be high at 7s.%%" %! crore" but considering the contribution of the industry in terms of exports and employment it is negligible.0ocial IssuesCinda (olodners TApparel Industry Code of ConductJ A Consumer *erspective on 0ocial7esponsibilityT addresses a number of social concerns evident in the apparel industry.(olodner.s is president of the 4ational Consumers Ceague.Child CaborChild labor is one of the leading social concerns for the apparel industry. Americancompanies are constantly loo$ing for ways to reduce production costs. Child laborspecifically refers to Fobs that prevent children from attaining education or Fobs that could bedetrimental to the child. The increased minimum wage level and increased import costs ma$eit increasingly difficult for Americans to compete with overseas firms. 8any apparel goodsare either produced by foreign companies or by American companies whose manufacturingfacilities are abroad.8any foreign countries do not have restrictions on child labor laws. There are several reasonswhy employing children is a common practice in many nations. Children do not need to bepaid as much as adults" they are more easily manipulated" school is not always an option" andit is a tradition in many nations.CabelsCabels are the $ey source of information available to consumers about various textile andapparel products. Information on labels is far more li$ely to be loo$ed at than information oncompany websites because the contents are available immediately when loo$ing at a productlabel. Cabelling often includes country of production. ?owever" it is important to disclosemore information that this on the label shoppers want to $now other details about theproduction process such labor practices" environmental consequences" and testing procedures.0weatshops - . The apparel industry is one industry particularly affected bysweatshops. 0weatshops infringe upon some of the most basicrights of individuals

concerning wor$ing conditions such as wages"safety" and overtime. 9urthermore" sweatshops often employchildren. /nfortunately" it is often difficult to monitor the practicesof overseas companies. Our government does not have the abilityto analy=e the labor practices of all foreign plants and cannot force them to adhere toAmerican standards.>randing>uilding Indian brands in global apparel mar$et is necessary" because the mar$eters canincrease the value of their products by branding. As we all $now" there are very few apparelexporters who had attempted to create brands in the global mar$et. Others" still supply tointernational buying houses or retail chains as per the specifications and designs provided bythe buyers and most importantly the exporters put the label or brand name as stipulated by thebuyer wherein the exporters voluntarily hide their identity in the global mar$et.Although" the apparel exporters do have the capability to produce as per the requirement ofglobal mar$et" their main lacuna is strategic thin$ing in creating their own brands. Cet.s seethe scenario of apparel branding in domestic mar$et.There is cut throat competition in the mar$et" many brands enter the mar$et and with a shortrun success they become obsolete.This is because consumer tastes are changing fast due to the influence of cultural"psychological and global trends and hence they are less loyal. To put salt on the wound" manyglobal brands are also entering the Indian mar$et" ma$ing Indian brands clueless as to how tosurvive the competition. This situation necessitates the mar$eters to strengthen their brandsfor their stay in the mar$et. This might be possible only when the mar$eters considerbranding not as a set of activities" but as a strategic thin$ing.To compete in domestic as well as global mar$et place in the long run" the mar$eters mustcreate and manage strong brands. The brand value will become a vital factor in creating loyalcustomers which would pose a formidable defence in the competitive mar$et. 9or exampleconsider the *olo 7alph Cauren brandG there are customers who would li$e to wear :*olo;horse on their shirt so that people around them $now that they can afford to buy a *olo 7alph -&. Cauren shirt. It has the stylish component" but it has also something a little extra. In reality"the customer can purchase an almost identical shirt somewhere else" without the labelling onit" for quite a bit less. It is the status and the reputation that the brand carries which reallypromotes the brand value and encourages people to purchase the brand against the plethora ofcompeting brands.>rands are cultures8any people thin$ that branding is nothing but Fust creating a brand name" advertising it" andbuilding the image of the brand. According to *rof )ouglas > ?olt of ?arvard >usiness0chool" branding is not a

selected set of activities but it is a strategic point of view. >randingrequires managers to put conscious efforts to build the society.s perceived value of theproduct.0ociety attributes meaning to the products which would eventually become facts about theproduct over the years. These facts ma$e up the culture of the product. A brand need not Fustbe a name or a logoG it can also be unique design features. These features become materialmar$ers of the brand. Customer experiences" advertisements" sponsoring activities to theevents" newspaper articles evaluating the brand and conversations with friends and colleaguesthat mention the brand establish the brand culture.>rand value>rand culture facilitates the customer to form perceptions about the value of the brand. Thevalue of the brand is nothing but the difference between what a consumer will pay for abranded product and a physically identical product without brand culture. In consumermar$ets" brand value has components such as reputation" experiential and symbolism.7eputation valueConsumers often feel the ris$ of un$nown and also they have the tendency to reduce it bysome way or other. 9or example" if the consumers don.t $now about the quality of the fabricthat they intend to purchase" they would perceive the purchase decision as ris$y. In suchsituations" reputation of the brand in terms of quality offers confidence to the consumers to goahead with the purchase. The stories about product experiences which they hear from varioussources also act as a base for building the reputation of the brand.Axperiential value -!. Consumers don.t value the product on all parameters. They often Fump into conclusion veryfast and become regular in buying and using particular brands based on faith. >ecomingregular with a particular brand help the customers in reducing the search costs and need forstraining the brain in analysis and decision ma$ing.They often are not interested to investigate the evidences for the claims the brands ma$e.They tend to attribute certain benefits for which they buy the particular brand. 7aymondconstantly promotes .Complete man. benefit for their suiting which is the $ey benefit forwhich consumers go for 7aymond. That.s why 7aymond still remains above competitionwith a leading value and volume share in the organised ready-to-stitch :7T0; mar$et.I8*O7TA4CA O9 >7A4)The constantly changing mar$et poses new challenges to clothing enterprises" and the clients.demands are also continually rising" and so it is necessary every now and again to offer thema higher added value. This added value is a properly planned brand strategy" the socalledbranding. 9irms without any distinct features" without a clear vision or specific mission" orwithout permanent values" will sin$ in the mass of messages

hitting the mar$et. A brandimage is defined through its selected symbolic patterns. The most important among these arethe brand.s name" logo" and composition of graphic elements and colours all associated withthe company. It is crucial for a brand built on these elements to give a clear message to thecustomer about the $ind of company he is dealing with" what its product is and who theclients are. All the elements comprising a brand image have to be closely related to the ideaand goals of the company. This certainly helps its positive identification" and as a result astrong and distinct image is created in the customers. mind. It is important that the customer.smind should absorb and retain as much information about a brand as possibleG some timelater this is translated into the reconcilability and prestige of a brand on the mar$et. A brandproduct offers a sense of safety" and guarantees quality and reliability. >rand values arefeatures that appeal to the emotional sphere of human perception?ence a brand is the most valuable asset of a company" and customer satisfaction is the $eyto a long-term success. As consumers must have a reason for selecting this given brand fromamong many others" each brand should have a motto apart from its distinctive usability. It isnecessary to define why it is different and what its position is. A brand is not anadvertisement" but rather a whole philosophy underlying a set of combined actions fixed on --. the company.s success. It is certainly an indispensable tool allowing effective conquest ofmar$ets" retention of the mar$et position" and international competition05OT A4AC@0I0 I4 >7A4) >/IC)I4(OpportunitiesIndian apparels accounted for a tiny fraction of less than per cent of overall world export ofapparel" suggesting an opportunity for considerable growth. There is a very large domesticmar$et for Indian apparel manufactures. As per 8cHinsey study" the mar$et si=e is of 7s23"333 crore" out of which only 7s &"333 crore is catered to by branded apparel. 0o there isstill an 7s %-"333 crore mar$et" which is catered by the unorganised small si=e units. Thedeveloped nations" which are the destinations for Indian textile products" use textiles in theform of apparel. Therefore" in order to improve the presence in these mar$ets and capturelarger values of the chain the focus needs to be shifted towards the effective performance ofthe textile apparel supply chain networ$" rather than loo$ing at textile industry in isolation.ThreatsLarious regulatory" technological and mar$eting changes were expected to affect India.stextile industry over the next few years. 9or a product line characterised by unpredictabledemand pattern and seasonality on one end and highly labour intensive on other" it isnecessary to have flexibility to balance the labour force employment from time to time.

Thereare few factors such as infrastructure and government policies that have caused wide gap inthe economic development between India and other nations for textile industry in particular"in spite of enFoying the benefits of abundant cheap labour" low manufacturing cost" availableraw materials and a large domestic mar$et.0trengthsThe Indian textile industry is globally more competitive than other industries in the countryon relative terms. 8ost of the inputs required for this sector being available from domesticsources and there are very little requirements of imports and precious foreign exchange. 9rommiddle of %++3s" manufacturing units of larger capacity with upgraded technology" mostly incollaboration with a Foint venture partner were established. )uring the same period" Indianconsumers could see availability of international brands in domestic mar$et" which weremade by Indian garment manufacturers. This had raised the expectation level of discerning -D. consumers and apparel industry faced the challenge to improve its performance from this setof demanding consumers. Importers of Indian apparels were generally satisfied with priceand enthusiastic about the ability to source small production quantities. 5ith the entry ofinternational garment companies into India" they )etermining the identity and building desirable brand image Choosing the best proFect Introducing brand to the mar$et by means of mar$eting activity Caw protection of brand )etermine the needs of the customers Controlling introduced brand on the mar$et Testing the product bring in new designs" new craftsmanship" modern scientific management and also the mar$eting strategies.These all can strengthen the competition mechanism so that the industry will gain moreresources for developing new products" new brand names" technology development and stafftraining in order to increase the mar$et competitiveness.5ea$nessesThe small manufacturing units lac$ed sophisticated planning and information system andfailed to offer scale economy. The present labour policy in a way discourages Indian apparelunits to set up large si=e manufacturing set up and achieve economies of scale. A large si=eunit" by Indian standard" could well be the smallest in si=e in the competing countries li$eChina" Indonesia" Thailand" >angladesh" and 0ri Can$a. One maFor area of concern for theIndian apparel exporters is the declining average unit value reali=ation" which has droppedfrom 1 &.&& in %++& to 1 .D3 in 2333. This clearly reflects the Indian exporters. inability tomove up the value chain and the threats of being branded as supplier of low end products inthe international apparel mar$et. This leads to the question of whether it ma$es sense topromote the brand image that exists at present or improve all on the wea$nesses

substantiallybefore we thin$ of further promotion. >uyers were frustrated by delivery and production leadtimes" the absence of large capacity garment manufacturers" and difficulties associated withfreight handling. The long and uncertain lead times seem to be the most serious problem"faced by the buyers of finished textile products and apparels. At times" products are delayedby three months" missing a season totally. In such situation" buyers normally as$ for -,. discounts" sharing of airfreight burden or full payment of the airfreight" and in worst casecancel the order.5ell integrated and lean supply chainsJ 0horter cycle and delivery timesThe Indian textile industry has a long and complex supply chain. This affects not only thecycle times" but also the delivery times. The average cycle time in the Indian textile industryis about &!-!3 days" which sometimes extends to ,3 days. The mean delay in the supplychain from procurement of raw materials and to export of finished goods is %!.! days. 0helflife of fashion driven products is very short :approximately &!days;" hence such delays areuntenable. These delays not only affect time-to-mar$et" but also 5or$-in- *rogress :5I*;"variability of supply chain and hence the cost. Therefore strong deployment of industrialengineering with particular emphasis on cellular manufacturing and <IT systems" in order toestablish lean supply chains is extremely crucial for manufacturers. *resence across the valuechain" vertical integration and investment in captive power units helps in effective demandassessment" resulting in greater control over the supply chain and cost reduction.>rand promotion >rands" in today.s consumer oriented mar$et" play an important role in terms of mar$et penetration and higher unit value reali=ation. >rands assure consumers that products are of a certain quality" durability" and conform to several social" environmental" and quality standards. The mar$ets of /0A and Aurope" which account for more than +3 percent of Indian Apparel Axports" are entirely dominated by various global brands" and Indian exporters are merely suppliers to such brands. It is estimated that the final retail value of an apparel product sold to consumers in export mar$ets is !%3 times higher than its ex-factory price. As a result" the country is losing a significant amount of export earnings. >rand development" therefore" will deepen the mar$et share and acceptability of Indian apparel" thereby leading to increased export earnings. ?owever" brand promotion is not only an expensive proposition" but also requires very carefully designed multi-sta$eholder strategy" on a sustainable basis. The capacity of Indian industry" by virtue of being 08A oriented" fragmented and decentrali=ed" to design and launch brand promotion efforts on its own is limited. Therefore" a *ublic-*rivate *artnership

:***; approach is the appropriate strategy to develop globally acceptable Indian apparel brands. -+. The Indian apparel industry will be encouraged to create a 0pecial *urpose Lehicle :0*L; for the purpose of brand creation and promotion. The role of the 0*L will include need assessment" mobili=ation of resources" assistance to enterprises to design and launch the brands in selected mar$ets" to forge lin$ages with $ey sta$e holders" and other hand-holding support. The 0*L will be a Corporate body with the maFority sta$e being held by user apparel industry enterprises through associations I councils. The 0*L" in consultation with the (overnment" would develop detailed guidelines and strategy for brand promotion.)I0T7I>/TIO4The Indian Textile industry is highly fragmented sector. Industry is fully vertically integrated across the whole value chain and interconnected with various operations. Textile Industry comprises small-scale" medium-scale" large-scale" non-integrated" spinning" weaving" finishing" and apparel-ma$ing firms and enterprises. This is an unorgani=ed sector and includes ?andlooms" *owerloom" ?osiery" Hnitting" 7eadymade (arments" Hhadi" Carpet and ?andicrafts manufacturing units. The organi=ed 8ill 0ector comprises of spinning 8ills" and Composite 8ills where spinning" weaving" and processing activities are done. The 9ibre and @arn 0ector of the textile industry includes Textile 9ibers" 4atural 9ibers such as Cotton" <ute" 0il$ and 5oolG 0ynthetic I 8an-8ade fibers such as *olyester" Liscose" 4ylon" Acrylic and *olypropylene. The 8an-8ade Textile 0ector includes 9ibre and 9ilament @arn manufacturing units of Cellulosic and 4on-Cellulosic origin. The Cellulosic 9ibreIyarn Industry is controlled by the 8inistry of Textiles" and the 4on-Cellulosic Industry is controlled by the 8inistry of Chemicals and 9ertili=ers. India is the largest producer of <ute" the 2nd largest producer of 0il$" the rd largest producer of Cotton and Cellulosic 9ibreI@arn and !th largest producer of 0ynthetic 9ibersI@arn. D3. The Textile and Apparel 0upply ChainThe Textile and Apparel 0upply Chain comprises diverse raw material sectors" ginningfacilities" spinning and extrusion processes" processing sector" weaving and $nitting factoriesand garment :and other stitched and non-stitched; manufacturing that supply an extensivedistribution channel. This supply chain is perhaps one of the most diverse in terms of the rawmaterials used" technologies deployed and products produced.This supply chain supplies about D3 per cent by value of its production to the domesticmar$et. The distribution channel comprises

wholesalers" distributors and a large number ofsmall retailers selling garments and textiles. It is only recently that large retail formats areemerging thereby increasing variety as well as volume on display at a single location.Another feature of the distribution channel is the strong presence of Eagents. who secure andconsolidate orders for producers. Axports are traditionally executed through Axport?ouses or procurementIcommissioning offices of large global apparel retailers.It is estimated that there exist -!"333 garment units in the organi=ed sector" of which about ,,per cent are for woven cloth while the remaining are for $nits. ?owever" only 3O&3 unitsare large in si=e :as a result of long years of reservation of non-exporting garment units for D%. the small scale sectors O a regulation that was removed recently;. 5hile these firms arespread all over the country" there are clusters emerging in the 4ational Capital 7egion:4C7;" 8umbai" >angalore" TirupurICoimbatore" and Cudhiana employing about .! mnpeople. According to our estimate" the total value of production in the garment sector isaround 7s.%3!3O%%33 bn of which about ,% per cent comes from the domestic mar$et. Thevalue of Indian garments :e.g. saree" dhoti" salwar $urta" etc.; is around 7s.233O2!3 bn.About &3 per cent of fabric for garment production is imported O a figure that is expected torise in coming years.The weaving and $nits sector lies at the heart of the industry. In 233&-3!" of the totalproduction from the weaving sector" about &- per cent was cotton cloth" &% per cent was%33' non-cotton including $hadi" wool and sil$ and % per cent was blended cloth. Threedistinctive technologies are used in the sector O handlooms" powerlooms and $nittingmachines. They also represent very distinctive supply chains. The handloom sector:including $hadi" sil$ and some wool; serves the low and the high ends of the value chain O both mass consumption products for use in rural India as well as niche products for urban #exports mar$ets. It produces" chiefly" textiles with geographical characteri=ation :e.g." cottonand sil$ sarees in *ochampally or Laranasi; and in small batches. ?andloom production in233 -3& was around !&+ mn.sq.meters of which about ,2 per cent was using cotton fibre.?andloom production is mostly rural :employing about %3 million" mostly" householdweavers; and revolves around master-weavers who provide designs" raw material and oftenthe loom.5eaving" using powerlooms was traditionally done by composite mills that combined it withspinning and processing operations. Over the years" government incentives and demand forlow cost" high volume" standard products :especially sarees and grey cloth; moved theproduction towards powerloom factories and away from composite mills :that wereessentially full line variety

producers;. 5hile some li$e Arvind 8ills or Ashima transformedthemselves into competitive units" others gradually closed down. In 233 -3&" there remained22 composite mills that produced %& & mn. sq. mts. of cloth. 8ost of these mills are locatedin (uFarat and 8aharashtra. 8ost of the woven cloth comes from the powerlooms :chiefly at0urat" >hiwandi" 4C7" Chennai;. In 233!" there were &2!"D+2 registered powerloom unitsthat produced 2-"+&D mn. sq. mts of cloth and employed about &"D!D" , wor$ers. 5eavingsector is predominantly small scale" has on an average &.! power looms per unit" suffers from D2. outdated technology" and incurs high co-ordination costs. Hnits have been more successfulespecially in export channels. 0trong production clusters li$e Tirupur and Cudhiana have ledto growth of accessories sector as well" albeit slowly. The hosiery sector" on the other hand"has largely a domestic focus and is growing rapidly.The spinning sector is perhaps most competitive globally in terms of variety" unit prices andproduction quantity. Though cotton is the fibre of preference" man-made fibre :polyster fibreand polyster filament yarn; is also produced by about %33 large and medium si=e producers.0pinning is done by %!-- mills and %%D3 0mall and 8edium Anterprises :08A;. 8ills"chiefly located in 4orth India" deploy &.2& mn. spindles and 3. ,! mn rotors while the 08Aunits produce their yarn on .2+ mn spindles and 3.%%+ mn. rotors producing 22D3 mn $g ofcotton yarn" +!3 mn $g of blended yarn and about %%3- mn $g of man-made filament yarnevery year. 5orsted and non-worsted spindles :producing woolen yarn; have alsoprogressively grown to 3.-3& mn and 3.& D mn respectively. 0pinning sector is technologyintensive and productivity is affected by the quality of cotton and the cleaning process usedduring ginning.The processing sector" i.e." dyeing" finishing and printing is mostly small in scale. Thelargest amongst these would dye and finish about !333 mIday. The remaining areindependent process houses :or part of composite mills; that use automated large batch orcontinuous processing and have an average scale of about 23"333 m of cloth daily. About,2.! per cent or %3" +D units are hand processors who dye cloth or yarn manually and dry inopen sunshine. Of the remaining :and these use automated and semiautomated equipment;"23D- are independent process houses.Cotton remains the most significant raw material for the Indian textile industry. In 233 -3&" 33+ mn $g of cotton was grown over D.D,! mn acres. Other fibres produced are sil$ :%!D&2tonnes;" Fute :%3+,!333 bales;" wool :!3.D mn $g; and man-made fibres :%%33.-! mn $g;.Cotton grows mostly in western and central India" sil$ in

southern India" Fute in eastern andwool in northern India. 0ignificant qualities of cotton" sil$ and wool fibres are also importedby the spinning and $nitting sectors. :Axcept for garments" all data in this section wasobtained from OTC 233& and Texmin 233!.; D . 8anaging such a complex supply chain requires coordination through excellent managerialpractices" technology and facilitating policies.Competitiveness of Indian Textile # Apparel IndustryIndia is one of the few countries that own the complete supply chain in close proximity fromdiverse fibres to a large mar$et. It is capable of delivering pac$aged products to customerscomprising a variety of fibres" diverse count si=es" cloths of different weight and weave" andpanoply of finishes. This permits the supply chain to mix and match variety in differentsegments to deliver new products and applications. This advantage is further accentuated bycost based advantages and diverse traditions in textiles.Indian strength in spinning is now well established O on unit costs on ring yarn" open-ended:OA; yarn as well as textured yarn" Indian firms are ahead of their global competitorsincluding China. 0ame is true on some woven OA yarn fabric categories :especially greyfabrics; but is not true for other woven segments. India contributes about 2 per cent of worldspindles and - per cent of world rotors :second highest in the world after China;. 9ifty fiveper cent of total investment in technology in the last decade has been made in the spinningsector. Its share in global shuttleless loom" however" is only about 2., per cent of worldlooms :and is ran$ed +th in the world;. The competitiveness in the weaving sector is adverselyaffected by low penetration of shuttleless looms :i.e." %.-+ ' of Indian looms;" theunorgani=ed nature of the sector :i.e." fragmented" small and" often" un-registered units" lowinvestment in technology # practices especially in the powerloom" processing" handloom and$nits; and higher power tariffs. There is" however" a recent trend of investment in setting uphi-tech" stand-alone mid-si=e weaving companies focusing on export mar$ets. India also hasthe highest deployment of handlooms in the world :handlooms are low on productivity butproduce speciali=ed fabric;. 5hile production and export of man-made fibre :and filamentyarn; has increased over the years" Indian industry still lags significantly behind /0" China"Aurope" Taiwan etc. :Texmin" 233!.;Indian textile industry has suffered in the past from low productivity at both ends of thesupply chain O low farm yields affecting cotton production and inefficiency in garment sectordue to restriction of si=e and reservation. Add to this" contamination of cotton withconsequent increase in cost :as it affects quality and requires installation of

additionalprocess to clean and open cotton fibres before carding operations;" poor ginning :most D&. equipment dates bac$ to %+&3s;" high average defect rates in production process :which alsoleads to increase in effective labor and power costs;" han$ yarn requirement" etc. and itscompetitiveness gets compromised severely. 0imilarly" processing technology is primarilymanual and small batch oriented with visual color matching and sun drying. This leads toinconsistency in conformance quality. Cead times across the sector continue to be affectedby variability in the supply chain O defect rates average over !'" average ' of orders on timeis about ,3'" variance in order si=e across firms is high :e.g." the coefficient of variability ofaverage order si=e for spinning firms is about 2.-;" and on an average" %- days of sales aswor$-in-process inventory :the highest for garment firms; and an average of 3 days of salesin raw material inventory :the highest for spinning firms; :Chandra 233&;. 0ome of thehurdles :e.g." reservation in the garment sectors; including tariff distortions between theorgani=ed and unorgani=ed sectors have now been systematically removed by policyinitiatives of (overnment of India and have opened avenues for firms to compete on the basisof their capabilities.Trade data of post-89A performance reveals some interesting trends O Indian firmsregistered a 2D per cent growth in exports to /0 :against China.s !2 per cent; during the <an-April 233! time period. 8ost of this growth has been in textiles while apparels showmarginal gains. Apparels # accessories constituted D,' of global exports to /0A :9ICCI233!;. :India is still a relatively small yet growing player in the global apparel mar$et.; It isexpected that India will soon replace 8exico as the second largest apparel supplier to the /0.Challenges facing Indian Textile and Apparel IndustryTextile supply chains compete on low cost" high quality" accurate delivery and flexibility invariety and volume. 0everal challenges stand in the way of Indian firms before they can owna larger share of the global mar$etJ0caleJ Axcept for spinning" all other sectors suffer from the problem of scale. Indian firms aretypically smaller than their Chinese or Thai counterparts and there are fewer large firms inIndia. 0ome of the Chinese large firms have %.! times higher spinning capacity" %.2! timesdenim :and 2 times gray fabric; capacity and about - times more revenue in garment thantheir counterparts in India thereby affecting the cost structure as well as ability to attractcustomers with large orders. The central tendency is to add capacity once the order has beenwon rather than ahead of the demand. Customers go where they see both capacity and

D!. capabilities. Carge capacity typically goes with standardi=ed products. These firms need todevelop the managerial capabilities required to manage large wor$ force and design anappropriate supply chain. 9or the si=e of the Indian economy" it will have to have biggerfirms producing standard products in large volumes as well as small and mid si=e firmsproducing large variety in small to mid si=e batches :the tension between the organi=ed andun-organi=ed sectors will have to be addressed first" though;. Then there is the need foremergence of specialist firms that will consolidate orders" boo$ capacities" managewarehouses and logistics of order delivery.0$ills J Three issues must be mentioned here J :a; there is a paucity of technical manpower Othere exist barely 3 programmes at graduate engineering :including diploma; levelsgraduating about %333 students O this is insufficient for bringing about technological changein the sectorG :b; Indian firms invest very little in training its existing wor$force and the s$illsare limited to existing processes :Chandra %++,;G :c; there is an acute shortage of trainedoperators and supervisors in India. It is expected that Indian firms will have to invest close to7s. %&33 bn by year 23%3 to increase its global trade to 1 !3 bn. This $ind of investmentwould require" by our calculations" about D3"333 supervisors and %.3!mn operators in thetextile sector and at least %%2"333 supervisors and 2.,mn operators in the apparel sector:assuming a ,3J23 ratio of investment between textiles and apparel;. The real bottlenec$ togrowth is going to be availability of s$illed manpower.Cycle TimeJ Cycle time is the $ey to competitiveness of a firm as it affects both price anddelivery schedule. Cycle time reduction is strongly correlated with high first pass yield" highthroughput times" and low variability in process times" low 5I* and consequently cost.Indian firms have to dramatically reduce cycle times across the entire supply chain which iscurrently quite high :Chandra" 233&;. Customs must provide a turnaround time of W day foran order before Indian firms can they expect to become part of larger global supply chains.Indian firms need a strong deployment of industrial engineering with particular emphasis oncellular manufacturing" <IT and statistical process control to reduce lead times on shopfloors. *enetration of IT for improving productivity is particularly low in this sector.Innovation # TechnologyJ A review of the products imported from China to /0A during<anuaryOApril 233! reveals that the top three products in terms of percentage increase inimports were Tire Cords # Tire 9abrics :,& .&' increase over the previous year;" 4on-woven fabrics :2,&.%' increase; and TextileI9abric 9inishing 8ill *roducts :%+D.2'

D-. increase; :9ICCI" 233!;. 4one of these items" however" figure in the list of imports fromIndia that have gained in these early days of post-89A. Antry into newer applicationdomains of industrial textiles" 4ano-textiles" home furnishings etc. becomes imperative if weare to grow beyond !O-' of global mar$et share as these are areas that are proFected to growsignificantly. 0ynthetic textiles comprise about !3 per cent of the global textile mar$et.Indian synthetic industry" however" is not well entrenched. The Technology /pgradation9und of the government is being used to stimulate investment in new processes.?owever" there is little evidence that this deployment in technology has accompaniedchanges in the managerial regimes O a necessary condition for increasing productivity andorder winning ability.)omestic 8ar$etJ The Indian domestic mar$et for all textile and apparel products isestimated at 12- bn and growing. 5hile the mar$et is very competitive at the low end of thevalue chain" the mid or higher ranges are overpriced :i.e." Edollar pricing.;. 9irms are notta$ing advantage of the large domestic mar$et in generating economies of scale to delivercost advantage in export mar$ets. The 9ree Trade Agreement with 0ingapore and Thailandwill allow overseas producers to meet the aspirations of domestic buyers with quality andprices that are competitive in the domestic mar$et. Ignoring the domestic mar$et" in the longrun" will peril the export mar$ets for domestic producers. In addition" high retail propertyprices and high channel margins in India will restrict growth of this mar$et. 9irms need toma$e their supply chain leaner in order to overcome these disadvantages.Institutional 0upportJ Textile policy has come long ways in reducing impediments for theindustry O sometimes driven by global competition and" at other times" by international traderegulations. ?owever" few areas of policy wea$ness stand out O labor reforms :which ishindering movement towards higher scale of operations by Indian firms;" power availabilityand its quality" customs clearance and shipment operations from ports" credit for large scaleinvestments that are needed for upgradation of technology" and development of manpowerfor the industry. These are problems facing several sectors of industry in India and not bythis sector alone.In conclusion" competitive strategies are developed by sector level firms and its theirindividual and collective initiatives that secure higher mar$et share in global trade. 5hile onehas to be ever vigilant of non-tariff barriers in the post 89A world" the new mar$et will bewon on the basis of capabilities across the supply chain. *olicy will need to facilitate this

DD. building of capabilities at the firm level and the flexible strategies that firms will need todevise periodically.Textile Industry Concerns Indian Textile Industry is highly fragmented Industry that is lead by several small- scale industries. >ecause of this" there is lac$ of Industry Ceadership. These small companies do not have fiscal resources to invest in technological up-gradation and they are not able to generate economies of scale. This leads to inability to establish a world-class competitive player. )espite many policies Industry is bound with historical regulations that are reason for Complex Industry 0tructure. Though Industry has cheap and s$illed manpower but they are less productive. Industry is unable to generate economies of scale" as a result" it is tough to balance the demand and supply equation. There is lac$ of technological up-gradation in various steps of value chain that affect the quality" cost and distribution. There are high Costs li$e" ?igh Indirect Taxes" *ower and Interest 7ates. Inadequate 7esearch # )evelopment. There is less 9)I in this industry that is hurdle to ma$e industry more competitive on global basis. Industry has unfavourable labor Caws. India has disadvantage in terms of (eographic Cocations. >ecause of this there is (lobal Cogistic )isadvantage as shipping cost is higher. There is uneven supply chain model and inbound freight traffic is low which affects cost of shipping. India lac$s in various trade memberships" which restrict to tap potential mar$et. Inappropriate energy supplies to rural and sub-urban areas. Industry needs to compete on the basis of *rice" 6uality and )elivery for the different segments.T?A C?ACCA4(A0 A4) 0T7ATA(@ 9O7 (7O5T? O9 T?A I4)IA4 TABTICAI4)/0T7@ The Indian textile industry is in a stronger position now than it was in the last six decades. The industry which was growing at O & percent during the last six decades D,. has now accelerated to an annual growth rate of + O %3 percent. There is a sense ofoptimism in the industry and textiles sector has now become a Esunrise. sector.The catalysts which have placed the industry on this traFectory of exponential growthare a buoyant domestic economy" a substantial increase in cotton production" theconducive policy environment provided by the (overnment" and the expiration of the8ulti 9ibre Agreement :89A; on %st )ecember.233&.The buoyant Indian economy" growing at the rate of , percent" has resulted in higherdisposable income levels. The disposable income of Indian consumers has increasedsteadily. The proportion of the maFor consuming class :population that has an annualincome of more than /01 2333; has risen from 23 percent in %++!-+- to 2, percent in233%-32. This is expected to move up to ! percent by 233!-3-" and to &, percent by233+-%3. This translates into a growth

of +. percent over the next , years" and willresult in higher spending capacity" manifesting itself in the greater consumption oftextiles.The Indian textile industry consumes a diverse range of fibres and yarn" but ispredominantly cotton based. A significant increase in cotton production during thelast two O three years has increased the availability of raw cotton to the domestictextiles industry at competitive prices" providing it with a competitive edge in theglobal mar$et.The (overnment has also provided industry a conducive policy environment andinitiated schemes which have facilitated the growth of the industry. The Technology8ission on Cotton has increased cotton production and reduced contamination levels.The Technology /pgradation 9und 0cheme :T/90; has facilitated the installation ofthe state-of-the-art I near state-of-theart machinery at competitive capital cost. Therationali=ation of fiscal duties has provided a level playing field to all segments"resulting in the holistic growth of the industry.6uotas which have restrained the export growth of the Indian textile industry for overfour decades were eliminated with effect from 3%.3%.233!. This has unshac$ledIndian exports" and this is evident from the growth registered in the quota mar$ets.Apparel exports to /0A during 233! have increased by &.2 percent" while textilesexports have increased by %percent. 0imilarly" in Aurope" apparel exports haveincreased by 3.- percent and textiles exports by 2.2 percent" during thecorresponding period. In 233also the export growth in these two mar$ets is D+. continuing with the same trend. This increasing trend in exports is expected to continue as maFor global players are not inclined to source exclusively from China. India is considered as the second most preferred destination for maFor global retailers due to its strength of vertical and hori=ontal integration. At this Functure" a strong foundation for industry has been laid on which world class manufacturing units can reali=e their full potential and ma$e a mar$ in the international economy.?uman 7esources )evelopment The non-availability of quality manpower is a dampener to growth in many textile clusters. It is not only a wea$ness of the sector" but is fast emerging as a maFor threat to the growth which has been envisaged. The 5or$ing (roup has estimated the incremental manpower requirement at %D. D million" comprising of %2.32 million direct and !. ! million indirect in the ancillary industry. The maximum requirement is estimated in the clothing and apparel sector. The current training infrastructure in the country consists of engineering colleges" polytechnics" IITs" and agencies li$e Apparel Training # )evelopment Centers :AT)Cs;" *owerlooms 0ervice Centers :*0Cs;" 5eaving 0ervice Centers :50Cs;"

Textiles 7esearch Associations :T7As;" ITIs" *rivate Locational Training institutes etc. It is estimated that the output of trainees from the entire existing training infrastructure is not even adequate to meet existing requirements. One of the critical factors which would impact adversely on the growth process of the textiles industry is the inadequacy of training facilities in the country. To meet the incremental requirement for training" the 5or$ing (roup suggests the following measuresJ-Increasing availability of textiles machineryThe domestic textiles machinery manufacturing industry is proFected to triple its capacityduring the Aleventh 9ive @ear *lan with adequate support from the (overnment. ?owever"even with enhanced capacity" the indigenous textiles machinery industry would not be able tomeet the demands of the textile industry. 9or example" during the Aleventh *lan" theincremental spindle requirement is 2+.2! million :2% million incremental X ,.2! million for ,3. replacement;" at the rate of !.,! million spindles per annum. ?owever" the indigenous textilesmachinery industry has proFected a capacity of .,! million spindles per annum by the end ofAleventh *lan. 0imilarly" an incremental %.3+ la$h shuttleless looms are required to beinstalled by the industry :23"333 by the organi=ed sector X ,,",!% by powerloom sector;.Against this requirement" the textiles machinery industry has proFected a capacity of 23"333shuttleless looms by the terminal year of the Aleventh *lan. 9urther" the indigenous textilesmachinery industry does not produce $nitting and garmenting machinery. The 5or$ing(roup has critically examined this issue and has suggested the following three-prongedstrategy O:i; Transfer of textile machinery industry from the 8inistry of ?eavy Industries to the 8inistry of Textiles O This will help to provide adequate support to domestic textiles machinery manufacturing industry in the implementation of a time-bound action plan to increase the availability of indigenous machinery to meet the demand from different segments of the textiles industry. A scheme on the lines of T/90 should be initiated" with ! percent interest reimbursement and %3 percent capital subsidy to encourage moderni=ation.:ii; Aggressive wooing of the 9oreign )irect Investment :9)I; in the textiles machinery sector - To attract reputed manufactures of textiles machinery - spinning" weaving and processing O and invite them to set up facilities in India to meet the growing requirements of Indian industry. One of the biggest factors that has triggered the growth of the Chinese industry is the domestic availability of the textiles machinery. (lobally reputed textiles machinery manufacturers have set up units in China" and have developed models which are suitable to the Chinese industry. 5e should also

encourage the global manufacturers to set up similar units in India to meet the requirement of the Indian textile industry. To increase the 9)I" the 5or$ing (roup recommends that (overnment may consider 9)I proposals from textiles machinery manufacturers on a selective basis" independent of laid down stipulations in the *ress 4ote 4o. %,.:iii; A critical reloo$ at importing second hand machinery O *ermission to import recent vintage :technologically comparable" and with a significant residual life; may be given to importers along with benefits at par with those given to the import of new machinery. 0ufficient care will have to be ta$en that while accepting such machinery" India should not become a technology Fun$ yard. ,%. Cabour reforms 7igid labour laws are now emerging as a constraint to the growth of the industry" particularly the clothing and apparel segment. There is need to liberalise labour laws on the following linesJ *ermit use of contract labour in Axport Oriented /nits :AO/s;J The export business is seasonal and contractual in nature. Axcess labour during lean periods or during the initial stages of developing an export mar$et:s;" when the uncertainty of orders is high" can lead to financial difficulties. 0ection %3 of the Contract Cabour :7egulation and Abolition; Act" %+D3 needs to be amended. The section should exclude textile units engaged in export related activity :where exports I deemed exports comprising !3 percent or more of their sales; to facilitate outsourcing of activities without any restriction" as well as to offer contract appointments. *rotection of the rights of these labour will be ensured in terms of their health" safety" welfare" social security" etc. 9or example" countries such as China" >angladesh and 0ri Can$a have allowed contract labour in the textiles sector. *ermitting firms to adFust their wor$forceJ /nits employing over %33 people currently fall under the purview of Industrial )isputes Act" %+!-. The Act stipulates that employers must obtain necessary approvals for lay-offs. This proves to be a hindrance" especially for medium si=ed enterprises. There is need to relax the norms of the Industrial )isputes Act :Chapter L>;" by $eeping units employing up to !33 people :presently %33; outside its purview. 9or example" 8alaysia regards the right to hire" assign wor$" reward" transfer" promote and adFust the wor$force as managerial rights. 5or$force adFustment :ICO Convention on Termination of Amployment; at the instance of employer due to structural and other changes should be permitted. Axtending wor$ hoursJ The (overnment also needs to consider the demand of labour intensive sections of the textiles industry such as made-ups and garmenting industry to increase the hours in a shift from nine at present to twelve" and also increase the wor$ing

hours in a wee$ from forty eight to sixty" in order to cater to the pea$ season requirements of customers" and to compensate for lower labour productivity.Amployment Conditions and <ob 0atisfaction ,2. The liberali=ation policies of the Indian government" begun in %++%" assisted in opening upthe economy to domestic and international competition. Autar$ic policies of the past decadeshad limited foreign investment and prioriti=ed the growth of domestic industry throughimport substitution and public ownership of much of the means of production. Amphasis onself-reliance had eventually led to an economic crisis" which did not help to improve wor$ingconditions for the maFority of the Indian labor force. )uring this period" many s$illed anduns$illed wor$ers among the population had opted for better employment opportunities inother countries.)espite the benefits of economic liberali=ation" it has not quic$ly solved the problem ofunemployment and other social and economic ills. 0hort-and long-term Fob losses as a resultof competition" for example" have been common" especially among the unprofitable firms.One of the main areas of employment for many of the poor has been the cotton textileindustry with its traditional concentration of mills in the cities of >ombay" Ahmedabad" andCoimbatore. Along with mills that use the most advanced technology to process raw cottonand form cotton fiber" there also have existed a large number of small-scale wor$shops andhouseholds that use traditional handlooms :the type used by 8ahatma (handi; and rely onmanual labor for the processing of cotton. Indias mar$et liberali=ation led to the foreclosureof much of the traditional handloom cotton industry and resulted in nearly 2. millionwor$ers losing their Fobs. 8any of these wor$ers have remained unemployed. 8anagers ofthe modern mills attribute this to the older age of hand-loom wor$ers and their inflexibility orinability to adFust to the mechani=ed cotton mills.As opposed to neighbouring China" trade unions in India play a very prominent role in thebusiness community. Avery industry has a trade union that advocates the rights andemployment opportunities of its members. Trade unions strive to obtain the best deal for theirmembers in terms of wages" wor$ing conditions" acceptable remuneration" and welfarepac$ages. As much as +2 percent of the labor force in India is unioni=ed. 0ome of thelaborers of the cotton industry have gained employment in the textile industry" which with itslabor force of + million is among the largest unioni=ed industries.5omen constitute an important segment of the Indian labor force whose wor$ing conditionshave not made significant progress. )espite some noticeable advances for a small percentageof women" women as a whole have been relegated largely to

agricultural and menial pursuitsthat pay the lowest wages. In some ways" as the overall economy has grown" the situation of , . wor$ing women in India has even deteriorated. In %+%%" for example" threequarters of the wor$ing women of India were agricultural wor$ersG in %++%" the proportion was over ,3 percent. 4early D3 percent of the population as a whole derives its livelihood from land resources" and women contribute an estimated !! to -- percent of the total farm labor force. India Textile Industry is one of the leading textile industries in the world. Though was predominantly unorgani=ed industry even a few years bac$" but the scenario started changing after the economic liberali=ation of Indian economy in %++%. The opening up of economy gave the much-needed thrust to the Indian textile industry" which has now successfully become one of the largest in the world. Amployment in textile and allied sectors Amployment :In 8n. 4os.;0r. 0ector I Industry *roFected for the4o. As on terminal year of the Increase 8arch 233- Aleventh *lanI. Textile sector%. CottonI8an-made 9ibreI@arn TextileI8ill 0ector :including 00I spinning # exclusive 3.+& %.&3 3.&- weaving units;2. 8an-made 9ibreI9ilament @arn Industry 3.%- 3.2& 3.3, :including texturising industry; . )ecentralised *owerlooms 0ector &.,- !.3, 3.22&. ?andloom 0ector -.!3 D.33 3.!3!. Hnitting 0ector 3.& 3.&! 3.32-. *rocessing 0ector 3.2+ 3.&& 3.%!D. 5oollen 0ector %.!3 .23 %.D3,. 7eady 8ade (arment 0ector !.!D %%.22 !.-! :including Hnitwear 0ector;+. 0ericulture !.+! D.D3 %.D!%3. ?andicraft 0ector -.!D ,.33 %.&