Export Potential of RMG From India To UK

Export of Ready Made Garment to United Kingdom
INTERNATIONAL INSTITUTE OF FOREIGN

TRADE & RESEARCH
Export potential of Ready Made Garment to United

Kingdom
“Indo- UK Trade With Reference To Ready Made Garment Sector

Submitted To Devi Ahilya University, Indore towards Partial Fulfillment of
Master of Business Administration (Foreign Trade)”
Name of Supervisor: - Submitted By:-

Prof. Vinni Arrora Anil Shrivastava
INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 1

(Date of submission)
I.
INDEX
Chapter Contents Pages

Certificate of Originality by Student iii
Certificate by the Supervisor iv
Preface v
Acknowledgement vi
Conceptual framework Vii
i. Research rationale
Viii
ii. Objectives
Research Methodology ix
I. Indian Ready Made Garments Industry. 12-18
1.1 Introduction to Readymade Garments.

1.2 Overview of Indian Economy.
1.3 Indian RMG Industry (An Overview).
1.4 Global RMG Industry and India’s Position.
II. Export of RMG from India. 20-32
2.1 Introduction.
2.2 Market Portfolio.
2.3 Product Portfolio.
2.4 Major Production Centers in India
2.5 Transportation and Packaging of RMG
2.6 Pricing of Indian RMG

2.7 Market Characteristics and Segmentation
III. Ready Made Garment Industry of UK 34-38
3.1 Overview of UK Economy.

3.2 Changing Structure of UK RMG Industry
3.3 UK RMG Industry (An Overview)
IV. Trade Relation between India and UK 40-47
4.1 Overall Trade Performance

4.2 Export Performance of RMG (Last 5 years)
4.3 HS Code wise Export Performance.
V. Government Support. 49-56
5.1 Indian Foreign Trade Policy regarding RMG.

5.2 Import Regulation of UK regarding Textiles
5.3 Bilateral trade Between India and UK
5.4 Govt. Polices, Promotional Scheme and Incentives.
VI. Competitive Environment. 58-60
6.1 Major Competitors.

6.2 Competitive Advantage for India.
6.3 Major Players in Indian RMG Export
VII. SWOT Analysis. 62-63
VIII. Major Findings 65

IX. Recommendations and Conclusion 67-69
X. References 70
iii
Certificate of Originality by the Student
I, Anil Shrivastava hereby certify that the project titled “Export Potential of Ready Made
Garment to United Kingdom” has been undertaken under the supervision of Professor Vinni
Arrora, faculty of IIFTR, towards partial fulfillment of Degree of Master of Business
Administration.
It is further certified that the project report compiled by me is my own work and to the best of
my knowledge, it does not contain any part of any work, which has been submitted for the award
of degree in this University, or any other University/ Deemed University without proper citation.
Place: Indore
Date: (Anil Shrivastava)

iv
Certificate of Originality by the Supervisor
This is to certify that the project titled “Export Potential of Ready Made Garment to United
kingdom” is a piece of research work has been done by Anil Shrivastava under my guidance and
supervision towards partial fulfillment of Degree of Master of Business Administration. I
recommend that the project to be submitted to Devi Ahilya University, Indore.
It is further certified that the project report compiled by him/her is his/her own work and I
recommend that the project to be submitted to DAVV.
(Project Guide) (Director)

Prof. Vinni Arrora DR. V.K. Gautam
Date:
(External Examiner)
Date

v
Date of Submission
PREFACE
Working on things which are of your interest always gives pleasure.
I am very much pleased with the things going on my research project as it suited to the field
which I like most. Garment sector and United Kingdom both attracted my way of approaching in
completing the project.
When I chose the topic-Export of Ready Made Garment to United Kingdom, as my research
project, the first thing that came in my mind was that I am working on that topic in which INDIA
almost rules the world.
As being student of Foreign Trade, I felt that this is the topic where in-depth study could be
possible. The Garment industry is at transition stage, where we can say it is reaching towards
mature stage from growing stage. Our exports are getting increased and many emerging markets
are coming up. United Kingdom along with other countries is becoming our major market. This
fact attracted me to relate my research on Garment industry with United Kingdom.
At the completion stage of my project, I feel that ocean is vast entity on earth and for human
beings; it’s not possible to have a complete picture within a short span of time.
Place-INDORE ANIL SHRIVASTAVA

Dated- M.B.A (F.T) 5y.r.s

SEM- VIth
IIFTR, INDORE (M.P.)
vi
Acknowledgement
I would like to express my sincere gratitude to our Col. Dr. V.K.Gautam to give the opportunity
to do research on “Export of Ready Made Garment working with him was a real learning
experience.
I would also like to thanks Prof. Vinni Arora, my project guide for his constant support
throughout my project. Discussing the project with him led to many more ideas.
I would also like to thanks to Library in charge Mr. Anurag Kumar Khare to provide the Study
Material regarding Garment Industry.
I would also like to thanks to Computer Lab In charge Mr. Devendra Singh Thakur to help on
desk research. He provide some useful websites to gather the information
Thanks to you all. Without your constant guidance and support my project would not be
completed.
Place:-INDORE ANIL SHRIVASTAVA

Dated: - M.B.A (F.T.) 5Y.R.S
SEM-VIth,
IIFTR, INDORE (M.P.)

vii
Research Rationale and Objective
Rationale
One of the most important reasons of choosing export potential of Ready made garments is one
of the largest exporting commodities from India and brings a good amount of foreign exchange
in the country and to know the various ways by which it can be exported.
India can have a high competitive edge over others because we are having abundant amount of
raw materials, Cotton Yarn plants, spinning and weaving mills and rich biodiversity with a
strong manufacturing base.
But there are so many problems which are faced by our exporter, so to know about their
problems and to find out the alternatives and Governmental support to increase the export of
Ready made garments from the country.

viii
Objectives
1. To Study global scenario of RMG
2. To study India scenario of RMG
3. To analyze the export potential of RMG from India to UK
4. To identify Strength, weakness, opportunities and threats for Indian RMG
5. To Recommendation proper production of Indian RMG
6. To analyze export potential of Indian RMG to world
7. To analyze the growth trend of Indian RMG for last 5 years

ix
Methodology
In this desk research the use of internet has a major role to play. The most of the research has
been conducted through the data available on the various website. However many website many
website are outdated but data and figures available with the sites of government organization
help me overcoming this limitation

CHAPTER 1
INDIAN RMG INDUSTRY
1.1 INTRODUCTON TO READY MADE GARMENTS.
1.2 OVERVIEW OF INDIAN ECONOMY.
1.3 INDIAN RMG INDUSTRY (AN OVERVIEW).
1.4 GLOBAL RMG INDUSTRY AND INDIA’S

POSITION.

1.1 Introduction.
Source: www.tis-gdv.de
Ready-made garments are mass-produced finished textile products of the clothing
industry. They are made from many different fabrics and yarns. Their characteristics depend on
the fibers used in their manufacture. Ready-made garments are divided into the following types:
Outer clothing: work wear and uniform, leisure wear, sportswear (e.g. suits,
pants, dresses, ladies' suits, blouses, blazers, jackets, cardigans, pullovers, coats,
sports jackets, skirts, shirts (short- or long-sleeved), ties, jeans, shorts, T-shirts,
polo shirts, sports shirts, tracksuits, bathing shorts, bathing suits, bikinis etc.)
Underclothing (underwear): jersey goods, lingerie (e.g. underpants, undershirts,
briefs, socks, stockings, pantyhose etc.)
Most jersey underwear consists of knitwear made from cotton or synthetic filament warp-knit
goods (Dederon, nylon). Knitwear is divided into fully fashioned and cut goods:
Fully fashioned jersey goods are produced in finished form and size with securely
finished edges; they are a high-quality product, as the loops cannot run at the edges.
Cut jersey goods are cut from tubular knit piece goods and sewn together; they are a
lower value product, as the loops can run at the edges and the fit of the garment is
not as good as in the case of fully fashioned jersey goods as the knitted fabric may
twist out of shape.
Category Range
Formal Wear Suits, Trousers, Shirts, Jackets Blazers, Neckties…
Casual Wear Shirts, Trousers, Jeans, Tee Shirts Shorts
Kids wear Shirts, Trousers, Jeans, Tee Shirts Shorts
Ladies Wear Skirts, Tops, Salwar Kameez , Sarees
Under garments Vests, Briefs, T-Shirts, etc.
Knitwear
Table 1.1
1.2 Indian Economy (Overview).

Source: www.ecoomywatch.com
India is the seventh largest and second most populous country in the world. A new spirit
of economic freedom is now stirring in the country, bringing sweeping changes in its wake. A
series of ambitious economic reforms aimed at deregulating the country and stimulating foreign
investment has moved India firmly into the front ranks of the rapidly growing Asia Pacific
region and unleashed the latent strengths of a complex and rapidly changing nation
The economy has been growing at an average growth rate of 8.8 per cent in the last four fiscal
years (2003-04 to 2006-07), with the 2006-07 growth rate of 9.6 per cent being the highest in the
last 18 years. Significantly, the industrial and service sectors have been contributing a major part
of this growth, suggesting the structural transformation underway in the Indian economy.
Industrial and services sectors have logged in a 10.63 and 11.18 per cent growth rate in 2006-07
respectively, against 8.02 per and 11.01 cent in 2005-06. Similarly, manufacturing grew by 8.98
per cent and 12 per cent in 2005-06 and 2006-07 and transport, storage and communication
recorded a growth of 14.65 and per cent 16.64 per cent, respectively.
Another significant feature of the growth process has been the consistently increasing savings
and investment rate. While the gross saving rate as a proportion of GDP has increased from 23.5
per cent in 2001-02 to 34.8 per cent in 2006-07, the investment rate-reflected as the gross capital
formation as a proportion of GDP-has increased from 22.8 per cent in 2001-02 to 35.9 per cent in
2006-07.
The process continues in the previous fiscal year. On the back of 9.9 per cent growth in the first
half of 2006-07, GDP grew by 9.1 per cent during April-September 2007.
• While overall industrial production grew by 9 per cent during April-December 2007,
importantly capital goods production rose by 20.2 per cent compared to 18.6 per cent
during same period in 2006.
• Services grew by 10.5 per cent in April-September 2007, on the back of 11.6 per cent
during the corresponding period in 2006-07.
• Manufacturing grew by 9.6 per cent during April-December 2007, on the back of 12.2
per cent growth during same period in 2006-07.
• Core infrastructure sector continued its growth rate recording 6 per cent growth in April-
November 2007.
• While exports grew by 21.76 per cent during April-December 2007, imports increased by
25.97 per cent in the same period.
• Money Supply (M3) has grown by a robust 22.8 per cent growth (year-on-year) as of
December 21, 2007 compared to 19.3 per cent last year.
Per Capita Income
Along this significant acceleration in the growth rate of Indian economy, India's per capita
income has increased at a rapid pace, exceeding an earlier forecast made by Goldman Sachs
BRIC report which estimated India's per capita to touch US$ 800 by 2010 and US$ 1149 by
2015.
Figure 1.1
Source: www.economywatch.com
Per capita income has increased from US$ 460 in 2000-01 to almost double to US$ 797 by the
end of 2006-07. In 2007-08, India's per capita income is estimated to be over US$ 825.07,
according to the advance estimates of the Central Statistical Organization (CSO). Further, India's
per capita income is expected to increase to US$ 2000 by 2016-17 and US$ 4000 by 2025. This
growth rate will, consequently, propel India into the middle-income category.
1.3 Indian RMG Industry (An Overview)
Source: www.fabre2fashion.com
India is the world’s second largest producer of textiles and garments after China. It is the
world’s third largest producer of cotton—after China and the USA—and the second largest

cotton consumer after China. The textile and garment industry in India is one of the oldest
manufacturing sectors in the country and is currently it’s largest. The textile and garment
industry fulfils a pivotal role in the Indian economy. It is a major foreign exchange earner and,
after agriculture, it is the largest employer with a total workforce of 35 mn.
Readymade Garment (RMG) industry in India has seen resurgence in the recent times. The
industry has witnessed sluggish growth in the past decade; however the scenario has changed
substantially due to globalization initiatives by WTO and subsequent phasing out of quotas by
United States (US) and European Union (EU), the key export destination. Ample opportunities
are there for Indian garment manufacturer, to tap in the international market.
The Readymade Garments account for approximately 45% of the textiles exports. This item
covers readymade garments of cotton, man-made fiber and other textiles material, and excludes
readymade garments of silk or wool. During 2004-2005, readymade garments exports were US$
6 billion, up by 4.1% over 2003-04. During 2005-2006, the readymade garments exports were
US$ 7.75 billion, recording an increase of 28.68 % over 2004-2005. During April-October 2006-
07, the readymade garments exports were US$ 4.45 billion, up by 3.80%, over the corresponding
period of 2005-2006.
India ranks among the world’s leading apparel exporters. It has an abundant domestic cotton
supply, and cotton items account for about three-quarters of its apparel exports. Indeed, 13 of the
14 major clothing types exported from India to the EU are cotton products.
Structural Characteristics of RMG industry
1. The Indian Ready made garment industry is fragmented with only a few large and
numerous small and medium companies

2. Cost advantages of manufacturing textiles and garments in India is derived from:
i. Abundant supply of inputs at competitive prices

ii. Low cost manpower with a range of skill levels from unskilled labour to fashion
design.
iii. Position as a leading cotton producer
3. India's ability to manufacture a wide range of products in the backward supply chain has
endowed it with a very strong and diverse raw material base for manufacturing natural and
artificial fibres. India also has capacity-based advantage in textile and spinning. However, the
high power and interest costs impair the advantage to a great extent.
4. Most domestic companies lack global scale but are cost-competitive due to the ready
availability of raw material and low-cost manpower.
5. India has become a sourcing base for many international labels such as GAP, Wal-Mart,
Tommy Hilfiger, Benetton, G Star, Levi's and Marks & Spencer
1.4 Global RMG and India’s Position
Source @ Fibre2fashion.com
The global textiles and apparel trade estimated at US$ 450 billion and expected to touch US$
700 billion by 2010 with demand for textiles and apparels expected to grow to 25 per cent from
current figures where Asia will contribute 85 per cent. The sudden growth and demand for
textiles and apparels will prompt international brands and buyers will look to source low cost
producing countries
India's textiles and apparels industry is estimated to be worth US$49 billion where 39 per cent is
accounted by the exports market. The domestic and exports markets in this sector are expected to
grow at 6.5 per cent and 12 per cent CAGR respectively. The growth has continued with total

exports increasing to US$ 19.62 billion in 2006-07. Currently India has a 3.5-4 per cent share in
world export of textiles and 3 per cent in clothing exports.
Europe continues to be India's major export market with 22 per cent share in textiles and 43 per
cent in apparel, the US is the single largest buyer of Indian textiles and apparel with 19 per cent
and 32.6 per cent share respectively. Other significant countries in the export list include the
UAE, Saudi Arabia, Canada, Bangladesh, China, Turkey and Japan. A recent study of the textile
industry predicts growth for the sector form USD 19 billion in 2006-07 to USD 50 billion by
2012. The year 2007 proved to be an exceptional year for the textile & garment industries of
some countries & tumultuous for others. On one hand countries like China & Vietnam had a very
excellent year, on the other hand countries like USA and India had declining figures. According
to revised reports from China, enterprises in the textile industry are expected to complete a total
industrial output value of 3.05 trillion Yuan, up 21.9 percent year on year.
In 2006, the largest manufacturers and exporters of apparel were countries from the Asia-Pacific
region which includes countries like China, Hong Kong, Philippines, Malaysia, Indonesia,
Bangladesh, Srilanka, Pakistan, Thailand and India. The other major apparel manufacturing
nations were USA, Italy, Germany and Mexico.
While on the other hand the textile & garment industry in India had to face the contentious issue
of the appreciation of the rupee. The rupee has appreciated by nearly 15 percent in the last one &
half year which has severely affected the competitiveness of the textile & garment industry.
Global Trade Volume and Trends
As the apparel manufacturing industry is more labour intensive and requires less capital
investment, its concentration is shifting more towards the developing countries and even
constituting large amount of their exports. This can be analyzed by the fact that the apparel
production in industrialized countries decreased between 1980 and 1996, where as the
production increased in developing countries during the same period. Similar trend was seen in
exports, the apparel exports of developing countries increased six times between 1980 and 1997,
and that of developed economies rose by 150%.
The global apparel industry’s total revenue in 2006 was US $ 1, 252.8 billion, which was
approximately 68% of the overall industry value. Asia Pacific constitutes the largest amount of
production and trade in the apparel industry worldwide. The percentage share of different regions
of the world in the total trade revenue in the year 2006 was
Table 1.2
Region % Share
Asia Pacific 35.40%
Europe 29.40%
USA 22.30%
Rest of the world 12.90%
China had captured 65% of the global market share towards the end of 2006 in total apparel
exports. The other major apparel exporting nations include USA, Germany, Hong Kong, Italy,
Malaysia, Pakistan, Thailand and India. Some of the trade statistics are presented below:
Table 1.3
Country US $ Billion
China 8,260.921
Hong Kong 1,723.210
Italy 1,353.586
Malaysia 1,255.069
Germany 669.130
Pakistan 618.830
Thailand 597.758
USA 595.171
India 522.463
CHAPTER 2
EXPORT OF RMG FROM INDIA.
2.1 Introduction.
2.2 Market Portfolio.
2.5 Transportation and Packaging of RMG
2.6 Pricing of Indian RMG
.
2.1 Introduction
Apparel exports from India have risen exponentially in the last few years, and are expected to
touch the $10 billion mark by the end of the current fiscal, up from $8.4 billion in the last
financial year. According to the Apparel Export Promotion Council, the future of apparel
exports is bright. In the last few years, India made rapid strides. India expects apparel exports to
grow at a healthy rate of 12 percent year-on-year. Next financial year, it is expected that the
exports to be in excess of $10 billion. Indian apparel exporters have three years to explore

inaccessible markets and establish their presence. During 2003-04, Indian apparel exports stood
at $4.6 billion. In 2004-05, it increased to $5.8 billion. It rose to a high of $8.4 billion during
2005-06 and increases to 8.9 billion in 2006-07.
Figure 2.1
Source: texmin.nic.in
After more than 4 decades of quota restrictions, the international textile trade moved into a quota
free regime from January, 2005. This has provided an opportunity to the domestic textile
industry to expand and strengthen itself in the international markets.
According to the Industry Vision, the Indian textiles and apparel industry can achieve a potential
size of US$ 85 billion by 2010. In view of the growth potential of the industry, the Government
is aiming at a still more ambitious target of attaining an Industry size of the order of 115 billion
US Dollars by the terminal year of the Eleventh Plan.
Figure 2.2

Source: fashionproduct.com
2.2 Market Portfolio
The Ready Made Garment sector is the biggest segment in the India’s textile export basket
contributing over 46% of total textile exports and a little over 12% of the total export of the
Country. The exports of RMG have grown over the past one and the half decade at a CAGR of
13%. Currently exports accounts for 31% of the total revenues of RMG sector. In 2004-05 the
total exports market was estimated at USD 6.4 bn and is expected to become USD 16 bn
opportunity by 2009-10 growing with a CAGR of 18-20%.
US and EU are the key exports destination for Indian RMG Companies. Currently with an export
valve of USD 2.1bn India has a share of 3% in total US apparel imports (in term of Sq. mt) and its
expected to increase to 6% by 2010. The valve of total exports from India in 2009-10 would 6.8bn.
The growth in apparel exports to the US market from the low-cost manufacturing countries like
India under the multi-fibre agreement (MNF), were the key impediments that had hindered the
growth of domestic RMG companies. During the quota regimen exports grew by a moderate
CAGR of 6.3% from USD 4.6bn in 2000-01. The domestic and exports markets in this sector are
expected to grow at 6.5 per cent and 12 per cent CAGR respectively. The growth has continued
with total exports increasing to US$ 19.62 billion in 2006-07. Currently India has a 3.5-4 per
cent share in world export of textiles and 3 per cent in clothing exports
Table 2.1
 USA  U ARAB EMTS
 GERMANY  NETHERLAND
 UK  CANADA
 FRANCE  SPAIN
 ITALY  DENMARK
Table 2.2
Principal export
destinations of India for
knit apparels
Sino. Country Values in US$ Mn Quantity in thousands
2005-2006 2006-2007(Apr-Sep)
1 USA 925.44 560.68
2 GERMANY 369.65 180.8
3 UK 329.22 173.64
4 FRANCE 256.41 155.77
5 ITALY 176.51 116.31
6 U ARAB EMTS 160.37 96.61
7 NETHERLAND 122.7 87
8 CANADA 139.75 78.26

9 SPAIN 119.27 62.72
10 DENMARK 67.76 38.64
Source: www.aepcindia.com
Table 2.3

Principal export
destinations of India
for woven apparels
S.No. Country Values in US$ Mn
2005-2006 2006-2007(Apr-Sep)
1 USA 1,928.32 859.64

2 UK 615.5 286.71
3 U ARAB EMTS 286.98 180.75
4 FRANCE 383.4 170.77
5 GERMANY 309.03 158.41
6 NETHERLAND 170.82 95.52

7 SPAIN 241.27 88.67
8 ITALY 206.9 88.47
9 SAUDI ARAB 140.48 82.32
10 CANADA 134.97 61.51
Source: www.aepcindia.com
1. RAW MATERIAL CONSUMED.

• COTTON
• SILK
• WOOL
• BLENDED FABRIC
• MILL MADE FABRIC- POLYESTER, NYLON, & OTHER
• SYNTHETIC FIBICS, HANDLOOM
2. PRODUCT CATEGORIES
• MEN’S WEAR
• LADIES WEAR
• CHILDREN’S WEAR
• OTHERS
These categories can be further classified as follow

MEN’S WEAR table 2.4

1. Anorak 2. bath rode
3. boxer shorts 4. Bermudas
5. Blouson. 6. Car coat.
7. cardigan 8. kurta pyajama
9. lungies 10. night gown/dressing gown
11. night suit 12. over coat
13. pullover 14. shirts
15. t-shirts 16. Ski suit.
17. Track suit 18. Trousers
19. Under pants 20. Waist coat
21. shorts 22. wind cheater
LADIES WEAR table 2.5

1. Apron 2. bathrobe
3. blouses 4. bra
5. Panties 6. camisole
7. Cape 8. Cardigan
9. Corset 10. dresses knitted or woven
11. ethic dresses 12. garters
13. Jacket/ coat 14. knitted/ woven ensemble
15. leotards 16. Long dresses
17. night dresses 18. overall
19. parka 20. petticoat
21. Sarees 22. romper
23. Salwar suit 24. Shirts
25. Shirts with zipper 26. Shorts
27. Skirts 28. Slips
29. Swim suit 30. T- Shirts
31. rain coat 32. Waist Suit
33. Wind cheater 34. Trousers
CHILDREN’S WEAR table 2.6

1. Dresses for infants 2. frocks
3. babe suit 4. Knickers
OTHERS table 2.7

1. Defense Uniform 2. gloves
3. Handkerchiefs 4. Industrial Garments
5. Occupational garments 6. socks
7. ties

Table 2.8
 Mumbai  Kolkata
 Delhi  Chennai
 Bangalore  Ahmadabad
 Ludhiana  Gurgaon
 Tirupur  Jabalpur
 Indore  Pune
In the apparel sector Ludhiana, tirupur, Delhi, Bangalore, Mumbai, Indore and Chennai are all
remarkably unique and dynamic centers of production. For example, Tirupur in south India
formally a small town is today a strong hold of cotton knitted wear with annual export of billion
dollars. Ludhiana in the prosperous northern state of Punjab, originally built its strength in
woolen knit wear through export to the former Soviet Union.
After a brief space in early 90’s it regain its dynamic and is now a supply hub for sweater knits to
some of the largest fashion brands in the USA and Europe.
Delhi the leading export centre for apparel in volume and value, leads also in design and
merchandising skills, with miller and flexible production qualities. Chennai on the other hand is
more geared towards large and well establish factories producing large quantities of basic
products, while Bangalore is growing in more engineered product including tailored clothing and
foundation garments. Indore has a strong production capacity in both men’s as well as children’
wear. It is also a leading export centre from Madhya Pradesh.
2.5 Transportation and Packaging of RMG.
Packaging
when transported by truck, outer clothing is often carried as hanging garments, while other
clothing items are generally transported in folding cartons and primarily containerized. Hanging
garments must be inserted into tight-fitting individual dust covers, sealed at the bottom. When
outer clothing is shipped in folding cartons, it is essential, in particular for higher quality goods,
for the folding cartons to be lined with tissue paper or the like, the individual items to be secured
and interlayer’s used. The cartons often consist of wet strength corrugated board.
Figure 2.3
Figure 1 Figure 2 Figure 3 Figure 4

Source: www.tis-gdv.de
The Government of India considers a garment as a Packaged Commodity and made it subject to
the provisions of Standard Weights and Measurement Acts as well as the Packaged Commodity
Rules there under. It is the view of the Government that by doing so, the interests of the
consumer will be protected.
Markings on the garment

any garment have the following markings:
1. Brand name, if any.
2. The label “Made in India ". This is a statutory requirement.
3. Size label in internationally and domestically accepted symbols: S, M, L, and XL each of
which determine a range of sizes.
Depending upon the type of garment, such labels are attached either under the collar or under the
waistband. For example: neck size for shirts; chest size for bush shirts, coats and garments
covering the upper part of the body; waist size for garments covering the lower part of the body.
In respect of children garments, the size label covers age groups.
1. Care Instructions according to internationally accepted symbols covering use of detergents

and/or temperature for ironing. These are generally explained in detail on tags attached firmly to
the garment.

2. Label showing the dominant fibre -- thus in a 100% cotton garment, the label will state " All
Cotton " whereas in the case of say a cotton-polyester blend where cotton predominates, the
word " Cotton " only or if polyester predominates, the word " polyester ".
From the above, it is observed that the customer's interest is fully protected. He knows what he is
buying, feels it for smoothness and tries it out in a trial room to make sure of the fit of the
garment. It is only after he is satisfied on all these counts that he affects a purchase.
Figure 2.4
Marking of packages
Keep dry Top
www.tis-gdv.de
Transportation
Means of transport
 Ship,
 Truck,
 Railroad,
 Aircraft
Container transport
Standard containers are suitable for transporting ready-made garments, subject to compliance
with limits for water content of goods, packaging and flooring. Garment containers are best
suited to transporting items of clothing, as they provide maximum protection against
creasing, dust and dirt. Garment containers have bars for hanging up items of clothing on
coat-hangers. The bars are generally anchored in perforated rails in the walls. The coat-
hangers are secured by special clips. A horizontally open able curtain is located between the
door and the inside. The wooden floor is impregnated and lined with floor covering (carpet).
Cargo handling
In damp weather (rain, snow), the cargo must be protected from moisture, since garments are
strongly hygroscopic and readily absorb moisture.
Stowage factor
2.30 - 9.47 m³/t (cartons) [1]

1.08 - 6.06 m³/t (boxes) [1]
Cargo securing
the cargo must be stowed in such a way that the boxes or cartons do not slip and become
damaged during transport. Where garments are shipped hanging, the shipping container (e.g. ISO
container, box body/swap body) must be carefully inspected for cleanness, leakproofness and the
ability to secure individual coat-hangers firmly. The coat-hangers must be secured on the bars
with retaining clips.
Figure 2.6
Figure 5 Figure 6 Figure 7 Figure 8

www.tis-gdv.de

Industry Supply Chain

The apparel industry supply chain can be broadly categorized into five major components, as,
raw materials, textile plants, apparel plants, export chains, retail stores, and customers
Figure: 2.7
The Textile and Apparel supply chain

2.6 Pricing of Indian RMG.
Typical cost structure of garments would have materials contributing 55% of the cost, while
fabrication, overheads and finishing contributes 22%, 15%, and 9% respectively of the garments,
while fabrication and overhead are a result of garment industry decentralized structure, fabric
cost is a function more of the productivity at the textile manufacturing stages. In India one big
stumbling block to higher productivity lies in the structure of India textile sector. With only 5%
of fabric produced in organized mill and about 57% produced in decentralized power looms
(over and above the 17% knit fabric) the quality of fabric supply to garment sector is poor.
Despite technological advance, clothing sector remains labor intensive globally and its
manufacturing is secularly shifting away from developed to developing countries. The actual
cost may vary depending on the ratio of in-house production (higher the in-house production,
higher the overheads) and certain value adding feature like embroidery which increase the cost of
finished cost. However, the material cost remains the most important element of the cost; the
capacity of raw material is viewed as representative of the product quality in garment industry.
Textile product has seemed considerable technology improvement, but that has partially restored
the comparative advantage of developed countries in textile manufacturing.
Figure 2.8

Source - Industry, I-SEC Research
Investment per machine is very low in India at $250 compared to $3510 and $1500 in Hong
Kong and China. This was due to Indian firm having a much proportion of manual machine and
even the power based machine was not so sophisticated.
The domestic market is expected to boom with demand for high value branded items and
household items showing a sharp increase. Not surprisingly, yarn manufacturers are shifting
away from exports and focusing on domestic markets. The industry is ready to utilise high
quality yarn in the domestic market, which was earlier meant exclusively for exports.
Of the total exports, apparel and accessories generated over $105.43 billion, a rise of 22.2
percent; yarn, fabric and other textile products makes up $51.152 billion, augmenting 15.3
percent. The US and EU imports nearly $30 billion worth of home textiles. The US market is
growing at 5 per cent per year while the EU market is growing at an estimated rate of 9-10 per
cent. Japan, Australia, New Zealand are also large consumers of home textiles. McKinsey
estimates that the global trade in home textiles will grow from $8.6 billion to $23 billion in 2010.
India's presence in the US home textile market is growing. India is the largest supplier of terry
towels, bed linen and second largest vendor of cotton made-ups to the US markets. China,
Pakistan, Bangladesh and Vietnam are major competitors for India in this segment. In the post-
quota regime, India's share of US imports has grown for sheets (20%) terry towels (21%),

pillowcases (19%) and total made-ups (11%).
Another segment in which India is a strong player is the embroidery market. The Indian market
for embroidery is valued at Rs 7.5 billion and is growing at 18 per cent per year. This is a highly
fragmented market with the organized sector constituting 40 per cent of the industry. Demand for
embroidery is on the rise and export to countries like the US, UK, Africa, Middle East offers a
huge market for embroidery products.
CHAPTER 3
UNITED KINGDOM’S READY MADE

GARMENT INDUSTRY.

INTERNATIONAL
3.3 UK RMGINSTITUDE
Industry OF
(AnFOREIGN TRADE & RESEARCH
Overview) 32
Source: www.BERR.com
The UK Economy is the largest in Europe after Germany, at the same time it is also ranked as
the fifth worldwide as per the market exchange rates, that is, in terms of GDP.
The GDP of the UK Economy grew by around 3 percent in the preceding fiscal (2006). London,
the Capital UK is one of the most important centers of trade and commerce in the world along
with New York City and Tokyo. The UK Economy is characterized by a free market involving a
low taxation and regulation on the part of the administration.
The UK is the fifth largest economy in the world, with a gross domestic product (GDP) of
US$2,345 billion (Source: World Bank, 2007). The UK is forecast to have the strongest business
environment of all major European economies for the period from 2007 to 2011 (Source: EIU,
2007).
In summary, the UK:
1. Has a population of 60.6 million (Source: ONS, 2007),
2. Was the second largest recipient of foreign direct investment (FDI) globally in 2006
(Source: UNCTAD, 2007),

3. Is a leading global trading nation, being the second largest exporter and third largest
importer of commercial services, and the seventh largest exporter and fourth largest
importer of merchandise (Source: World Trade Organization, 2007),
4. Is a member of the European Union, the world’s largest trading entity, with nearly 500
million consumers and a GDP of approximately US$16,000 billion,
5. Is one of the most competitive locations in Europe for business and personal taxation,
6. Has low unemployment (with an unemployment rate well below the European Union
average), and
7. Has the best European city – London – in which to do business
(Source: Healey & Baker, European Cities Monitor, October 2007).
Much of the manufacturing sides of the UK fashion and clothing industry have moved overseas.
Many factors have contributed to this move, including:
• The low cost of manufacturing in developing countries;

• Increasing globalization of companies;
• The growing importance of branding and marketing.
Specifically, there has been a rise in the importance and speed of design, marketing and
distribution. In 2005, the UK clothing and was worth £44.45 billion. Large-scale manufacturers
have almost vanished from the UK: the core business now is the sourcing and supply of goods.
However, there is a trend for some large retailers (notably Gap and Next plc) to become involved
in both manufacture and sales. Today, imports account for 95% of the fashion and textiles
market. Although this far outstrips exports, many of these imported goods bear UK labels. They
are designed, marketed and distributed from within this country, but manufactured abroad.

The fashion and textile industry is active in both imports and exports. Countries such as Hong
Kong, India, Turkey, Bangladesh, Greece and Portugal are major importers to the UK. However,
the key player is the Republic of China, which was providing the UK and EU with cheap goods
to the extent that the EU took action to restrain the trend and stabilize prices. A significant
amount of total UK exports to the USA, Germany, Italy, Australasia and East and South East
Asia is due to the fashion and textile industry. Japan is an important export market for designer
fashion.
The growing globalization of the industry has led to a trend towards the separation of the various
functions that make up the supply chain. This has meant the relocation of essential parts of the
supply process, particularly manufacturing. These functions now take place in developing
companies and countries, geographically separated from product development and marketing.
3.3 UK RMG Industry (An Overview)

Most clothing and textiles products purchased in the UK have made a journey across the globe
before arriving in retailers’ shops. The UK clothing industry depends on a global production
system, designed to minimize costs at each stage of the supply chain. Operations that must be
completed by hand are generally located in countries with cheap labor; more knowledge
intensive processes can be located elsewhere. Given that existing location decisions have largely
been driven by cost considerations, would there be an environmental or social benefit from
choosing different locations.
Major facts about UK RMG industry
1. One fifth of the UK’s annual consumption by weight of clothing and textile products is
manufactured in the UK (about 0.4 million tones). Of this about one third is carpet alone.
2. About two-thirds of the UK import of basic textile materials (fibres, yarns and fabrics) by
mass to the industry is man-made, the rest is of natural origin (primarily cotton and wool
– about 15% and 10% respectively).

3. Total employment in the industry amounted to 182 thousand people in 2004 (47% in
textiles and 53% in clothing). This is equivalent to a productivity of about £50 thousand
of sales per employee
4. About 3.25 million Tones of textiles flow through the UK each year – approximately
55kg per person.
5. Of this, half (52%) is imported as textile products, 25% as ‘intermediate products’ mainly
fabric, yarn and non-woven. The rest is imported fibre and fibre created in the UK –
about 10% each. The total import of textile materials and products is about 2.9 million
tones.
6. The UK exports 1.15 million tones of clothing and textiles each year, comprising fibres,
fabric and some completed products (mainly clothing and carpets). This includes about
200 thousand tones of products for reuse, recycling and final waste disposal abroad.
7. The total UK consumption of textile products is approximately 2.15 million tones

equivalent to approximately 35kg per UK capita. The average consumer expenditure can
therefore be estimated to be around £20 per kg.
Key drivers in the textiles sector
A range of factors are playing a significant role in shaping the development of the textiles sector.
These include:
1. Globalization - with increased sourcing (particularly of finished clothing) from lower-

cost overseas countries
2. Environmental legislation - rules affecting the development, use and disposal of
chemicals can have a significant impact in the textiles sector (a major consumer of dyes,
pigments and oils)

3. Technology and research and development - including streamlined production

processes, and the development of new fibres and textiles (including high-value technical
textiles)
International trade in the textiles sector
The textiles sector is an important element of the UK's international trading. While an increasing
proportion of finished clothing goods are imported from overseas, the UK's export strengths lie
in areas such as textiles and clothing design, and in the development and production of new
textiles including specialty and technical textiles.
The textiles sector runs a trade deficit - the UK imports more textiles goods than it exports. In
July-September quarter of 2006, exports totaled £1,373 million while imports reached £4,188
million (source: HM Revenue & Customs).
In 2005, exports in the textiles sector totaled £5.1 billion, equivalent to 2.5 per cent of total
exports that year. Imports totaled a much larger £14.7 billion, 5.3 per cent of total imports
(source: Department for Business, Enterprise and Regulatory Reform (BERR) 2005).
Important categories of textiles goods in terms of their export performance in 2005 were textile
weaving (which generated exports worth £830 million), knitted and crocheted articles (£392
million), carpet manufacturing (£203 million) and manufacturing in the "other textiles" sub-
category (£513m) (source: BERR, 2005). The priority export markets in the sector are:
• Germany
• France
• Netherlands
• Japan
• USA
(Source: UK Trade & Investment, 2006).

CHAPTER 4:-
TRADE RELATION BETWEEN UK &

INDIA

4.2 Export Performance of RMG (Last 5 years)
4.3 HS Code wise Export Performance.


UK is India’s largest trading partner in Europe with 6.4 percent market share. The India-UK
bilateral trade in the first 8 months of 2007 was up 13.2 percent over the comparable period of
2006. The total bilateral trade in goods has grown from £3.58 billion in 2001 to £5.83 bn in 2006
with UK being the second largest importer of Indian goods after US. The total trade in goods and
services in last five years (2002-2006) grew 0ver 75 percent to £ 8.74 bn in 2005 from £ 4.99 bn
in 2002. With the presence of more than 350 Indian companies, India is the eighth largest
investor in the UK in terms of number of projects. Of this, 275 firms are from Information and
Communications Technology. UK ranks third in terms of foreign investments in India after
Mauritius and the US.
The important facts here are:
1. UK is India’s fifth largest trading partner accounting for 3.56% of India’s total
foreign trade in goods in 2005-06.
2. India is UK’s 18th largest export market and the largest in the developing world
(ahead of China).
3. Bilateral Trade turnover in 2006

Trade in goods: £ 5.8 bn
Trade in services: £ 2.9 bn
Total trade: £ 8.74 bn
4. The balance of trade is currently in India’s favor.
India’s main exports to the UK are petroleum crude & products, engineering goods, ready made
garments, textiles, gold jeweler, footwear, marine products, rice and agricultural products etc.
Major exports from the UK are uncut diamonds, metal scrap, iron, chemicals, machinery,
transport equipment, scientific equipment etc.
The UK is the largest market in Europe for Indian IT services. British companies have off-shored
work to India (about 30) and created over 60,000 jobs. British businesses are estimated to save
upwards of £1 billion every year due to off-shoring, the bulk of which is accounted for by India.
Bilateral merchandise trade statistics are presented in the table below :( In £ million)
Year UK Exports % UK Imports % change Total % India's Balance
to India change from India change of Trade
2000 2058 +41.9% 1651 +15.8% 3709 +30% -407

2001 1772 -13.8% 1816 +10.0% 3588 -3.2% +44
2002 1755 -1.0% 1804 -0.66% 3579 -0.25% +29
2003 2284 +30.1% 2093 +16.1% 4377 +22.29% -191
2004 2235 -2.18% 2290 +9.41% 4525 +3.8% -55
2005 2798 +25.1% 2783 +21.52% 5581 +23.33% +15
2006 2695 -3.6% 3136 +12.68% 5831 +4.48% +441
2007 (Jan-
2062 -26.2% 2719 -13.29% 4781 -18% +657
Sept)
(Office of National Statistics and Overseas Trade Statistics, HM Customs & Excise) Table 4.1
Bilateral trade in Services is presented in the table below. (In £ million)

Year UK Exports UK Imports Total % change India's Bal of Trade
2001 664 816 1480 + 21.81% +152
2002 623 808 1431 - 3.31% +185
2003 605 810 1515 + 5.87% +105
2004 981 1095 2076 + 37.02% +114
2005 1146 1311 2457 + 18.06% +165
2006 1424 1485 2909. +18.68 +61
(Office of National Statistics and Overseas Trade Statistics, HM Customs & Excise) table 4.2
4.2 Export Performance of RMG ( Last 5 years)

Commodity: 61 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES,

KNITTED OR CORCHETED.
Country: U K
S.No. \Year 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
1 Values in US$ Million 227.96 239.76 277.4 329.22 346.16
2 %Growth 5.18 15.7 18.68 5.15
3 Total export of commodity 2,386.66 2,701.73 2,641.29 3,191.13 3,615.27
4 %Growth 13.2 -2.24 20.82 13.29
5 Total export to country 2,496.41 3,023.25 3,681.09 5,059.28 5,613.63
Exchange rate: (1US$ =
Rs.) 48.3953 45.9516 44.9315 44.2735 45.2849
Source: Directorate General of Central Intelligence Statistics, DGCI&S Table 4.3
Commodity: 62 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED OR

CROCHETED.
Country: U K
2002-
S.No. \Year 2003-2004 2004-2005 2005-2006 2006-2007
2003
1 Values in US$ Million 287.12 298.29 380.11 615.5 599.35
2 %Growth 3.89 27.43 61.93 -2.62
3 Total export of 3,351.78 3,541.35 3,932.68 5,435.50 5,279.59
commodity
4 %Growth 5.66 11.05 38.21 -2.87
5 Total export to country 2,496.41 3,023.25 3,681.09 5,059.28 5,613.63
Exchange rate: (1US$ =
Rs.) 48.3953 45.9516 44.9315 44.2735 45.2849
4.3 HS Code wise Export Performance
1. ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNITTED OR

CORCHETED.
Country: - UK Value in US$ million

S. HS 2003- 2006-2007
Commodity 2002-2003 2004-2005 2005-2006
No. Code 2004
1 6101 MEN'S/BOYS' OVERCOATS, 5.22 4.04 3.74 1.9 0.65
CAR-COATS, CAPES (INCL
SKI-JCKTS), WIND-CHEATERS,
WIND JCKTS ETC, KNTTD/
CRCHTD, EXCL OF HDG NO
6103
2 6102 WOMEN'S/GIRLS' OVRCOATS, 2.45 2.48 0.81 0.2 0.51
CARCOATS ETC (INCL SKI-
JCKTS), WIND-CHEATERS
ETC., KNITD/CRCHTD, EXCPT
THOSE OF HDG 6104
3 6103 MEN'S/BOYS'SUITS,ENSEMBL 11.91 13.36 15.16 16.01 12.71
ES, JACKETS,BLZRS TRSRS,
ETC(EXCPT SWIMWEAR),
KNTD/CRCHTD
4 6104 WOMEN'S/GIRLS'SUITS,ENSE 13.77 18.87 18.23 20.22 21.45
MBLES, JACKETS DRESSES,
SKRTS & DIVIDED SKRTS,
TROUSERS, BIB, BRACE
OVERALLS ETC, KNTTD/
CROCHETED
5 6105 MEN'S/BOYS'SHIRTS, 20.22 16.32 18.81 19.51 18.94
KNITTED/CROCHETED
6 6106 WOMEN'/GIRLS' BLOUSES, 17.18 14.72 18.92 26.73 26.04
SHIRTS & SHIRTS-BLOUSES,
KNITTED OR CROCHETED
7 6107 MEN'S/BOYS'UNDERPANTS,B 17.11 19.61 24.74 21.61 17.33
RIEFS, NIGHTSHIRTS,
PYJAMAS,BATHROBES ETC,
KNTTD/CRCHTD
8 6108 WOMEN'S/GIRLS' SLIPS, 24.14 34.12 38.71 31.98 33.1
PETTICOATS,BRIEFS,PANTIES
,NIGHTDRESS,PYJAMAS,
NEGLIGES,BATHROBS,DRESN
G GOWN ETC, KNITD/
CROTCHTD
9 6109 T-SHRTS,SNGLTS & OTHR 63.01 61.22 78.11 129.38 136.5
VESTS,KNTTD/CRCHTD

10 6110 JERSEYS,PULLOVERS,CARDI 18.79 14.97 16.19 10.57 16.78

GANS,WAISTCOATS &
SIMILAR ARTICLS, KNTTD/
CRCHTD
11 6111 BABIES GRMNTS & CLTHNG 26.94 27.86 29.26 37.53 47.33
ACSSRS,KNTTD/CRCHTD
12 6112 TRACK SUIT,SKI SUIT & 0.21 0.89 0.63 0.72 0.61
SWM WER,KNTTD/CRCHTD
13 6113 GRMNTS,MADE UP OF 0.04 0.04 0.03 0.05 0.06
KNTTD/CRCHTD FABRICS OF
HDNG NO. 5903 5906 OR 5907
14 6114 OTHER GARMENTS, 2.35 6.23 6.76 5.9 5.57
KNITTED/CROCHETED
15 6115 PANTY HOSE, TIGHTS, 3.31 3.68 3.49 3.73 5.72
STOCKINGS, SOCKS & OTHR
HOSIERY,INCL STOCKINGS
FR VARICOSE VEINS &
FOOTWEAR WTHT APPLD
SOLES,KNTD/CRCHTD
16 6116 GLOVES,MITTENS & MITTS, 0.3 0.54 0.58 0.33 0.99
KNITTED/CROCHETED
17 6117 OTHR MADE UP CLOTHNG 1.03 0.83 3.21 2.85 1.88
ACCSSRS,KNTD/CRCHTD;
KNTD/CRCHTD PRTS OF
GRMNTS/CLOTHNG ACSSRS
EXPORT OF ARTICLES OF 227.98 239.78 277.38 329.22 346.17
APPAREL AND CLOTHING
ACCESSORIES, KNITTED
OR CORCHETED. TO UK
TOTAL EXPORT OF 2,386.66 2,701.75 2,641.29 3,191.13 3,615.27
ARTICLES OF APPAREL AND
Tota CLOTHING ACCESSORIES,
l 61 KNITTED OR CORCHETED.
63,842.9 83,535.94 103,090.54 126,262.6
India's Total Export 52,719.43 7 8
2 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED OR

CROCHETED.
Country UK Value in US$ million

S. No. HS Code Commodity 2002-03 2003-04 2004-05 2005-06 2006-07
1 6201 MEN'S/BOY'S OVRCOTS, 2.74 3.81 13.2 10.89 3.18

CARCOTS,CAPES, CLOAKS
ANORAKS (INCL SKI-
JACKETS), WIND CHETRS,
WINDJACKETS & SMLR
ARTCLS EXCPTG HDG 6203
2 6202 WOMEN'S/GIRL'S 1.03 3.28 4.12 5.14 1.11
OVERCOATS,CARCOATS,
CAPES, CLOKS,ANORAKS
(INCL SKI-JACKETS),
WIND-CHTRSWIND-
JACKETS & SMLR ARTCLS
EXCL HDG 6204
3 6203 MEN'S OR BOYS' SUITS, 15.89 19.03 24.25 35.85 52.88
ENSEMBLES,JACKETS
BLAZERS,TROUSERS,BIB &
BRACE OVERALLS
BREECHES & SHORTS
(OTHER THAN SWIMWEAR)
4 6204 WOMEN'S/GIRLS' SUITS, 84.72 83.95 116.71 246.06 225.28
ENSEMBLES,JACKETS,
DRESSES,SKIRTS,TROUSER
S,BIB & BRACE OVRALS,
BRECHS & SHORTS
ETC(EXCPT SWIMWEAR)
5 6205 MEN'S OR BOY'S SHIRTS 58.64 49.57 50.42 62.67 67.81
6 6206 WOMEN/GRLS' BLOUSES, 62.2 66.6 101.65 162.02 156.82
SHRTS & SHRT-BLOUSES
7 6207 MEN'S OR BOYS' SINGLETS 4.93 4.05 3.81 4.17 1.19
AND OTHER VESTS
UNDERPANTS,BRIEFS,NIGH
T-SHIRTS,PYJAMAS,
BATHROBES,DRESSING
GOWNS & SIMILAR ARTCLS

8 6208 WOMEN'S OR GIRLS' 19.78 24.62 21.41 16.62 16.76

SINGLETS & OTHER VESTS,
SLIPS,PETICOTS,BRFS,
PANTIES,NIGHTDRESSES,
PYJMS,NEGLIGES,BATHROB
S,ETC.& SMLR ARTCLS
9 6209 BABIES' GARMENTS 11.03 12.13 9.69 17.4 19.21
AND CLOTHING
ACCESSORIES
10 6210 GARMENTS,MADE UP 0.62 2.33 1.71 1.98 1.03
OF FABRICS OF HEADING
NO.5602,5603,5903,5906
OR 5907
11 6211 TRCK SUITS,SKI SUITS & 5.5 6.78 7.88 12.95 15.64
SWMWEAR,OTHR GRMNTS
12 6212 BRSSRS,GRDLS,CORSTS 0.23 0.29 0.26 0.55 0.62
,BRCS,SUSPNDRS,GRTRS
& SMLR ARTCLS & PRTS
THROF,W/N KNTD/
CROCHTD
13 6213 HANDKERCHIEFS 0.5 0.19 0.3 0.11 0.28
14 6214 SHWLS,SCRVS,MUFLRS, 18.04 20.1 22.41 36.1 32.69
MNTLS,VELS & THE LIKE
15 6215 TIES,BOW TIES AND 0.04 0.12 0.13 0.23 0.3
CRAVATS
16 6216 GLOVES,MITTENS AND 0.33 0.32 0.36 1.19 1.66
MITTS
17 6217 OTHR MDE UP CLOTHNG 0.9 1.11 1.8 1.57 2.16
ACCSSRS,PRTS OF
GRMNTSOR OF CLOTHING
ACCSSRS, EXCL OF HDG
6212
Total 62 TOTAL EXPORT OF
ARTICLES OF APPAREL
AND CLOTHING 287.12 298.29 380.11 615.50 599.35
ACCESSORIES, NOT
TO UK
ARTICLES OF APPAREL 3,351.78 3,541.35 3,932.6
AND CLOTHING
ACCESSORIES, NOT 5,435.50 5,279.59
CHAPTER 5:-
GOVERNMENT SUPPORT.


Announcements in the new Foreign Trade Policy: (Source: www.aepcindia.com)
The new Foreign Trade Policy contains a number of positive features. The features, which are
particularly beneficial to the textile industry, are:
1. The office of the Textile Commissioner will focus attention on the development of
the garment industry;
2. Garment industry will be taken out of the SSI reservation list;
3. Joint ventures and strategic alliances with leading world manufacturers will be
promoted;

4. Schemes with necessary infrastructural facilities for the establishment of

textile/apparel parks will be designed with the active involvement of State
Governments, Financial Institutions and the private sector; and
5. Setting up of strong domestic retail chains to ensure easy availability of branded
Indian products will be encouraged.
6. Leftover materials and fabrics of the 100% EOUs up to 2% of CIF value or quantity
of import shall be allowed to be disposed of on payment of duty on transaction value
only.
National Textile Policy 2000 (Source: www.aepcindia.com)
For the growth and development of Indian Textile Industry and to make it more vibrant, Govt. of
India passed National Textile Policy in 2000.
Objectives of Policy:
1. To produce and provide good quality cloth in affordable price to fulfill different
needs of customers.
2. To increase the share of India in Global Textile Market.
3. To increase the contribution for employment and economic growth of country.
4. Facilitate the Textile Industry to attain and sustain a pre-eminent global standing in
the manufacture and export of clothing.
5. Liberalization of controls and regulations for the market development of different
Textile Segments and to make them stronger to perform in competitive environment.
6. Encourage FDI and R&D to improve the manufacturing capabilities and
infrastructure under the environmental standards.
Highlights of Policy:
1. Achieving the target of Textile and Apparel Exports from US $ 11 billion to US $ 50

billion by 2010. The share of garments is targeted US $ 25 billion.
2. Increasing contribution of private sector through set up environment-friendly and
technologically advance textile units and complexes.
3. To De-reserve the Garment Industry from Small Scale Industry.
4. To improve the availability, productivity and quality of Raw Materials.

5. Improvement in quality of fiber/Yarn and its availability.
6. To make Silk and Sericulture sector strong, Govt. is aimed to improve R & D,
Productivity of non-mulberry verities of silk.
7. Encourage Private Sector to increase productivity, and to market the Wool products.
Establishing Pre-Loom & Post-Loom facility.
8. Technological Up-gradation, Strategic Alliance with international textile majors,
Improved Quality, and Productive HR environment are the concern for Organized
Mill Industry.
9. To Increase Productivity, Enhanced Marketing and Distribution, Technological Up-
gradation and increased Research Development in Handloom Sector.
10. To Improve Export, Promotion, Technological Support, Infrastructure, Marketing &
Distribution and R & D for the growth of Handicraft Sector.
11. To increase Exports to 50 billion US $ by 2010, Increase FDI & Investment, and to
Increase Infrastructure Support to export oriented areas.

Source: www.BERR.com
As the European Union (EU) is a customs union, any one can buy goods from other member
countries without restrictions - although VAT and excise duty can still apply. However, if the
goods are restricted textiles they must be in free circulation before they can be moved without
restriction.
If you import from outside the EU, you may have to comply with import licensing requirements
and with common customs tariffs that apply across the EU.
Import licences
Under Registration, Evaluation, and Authorization of Chemicals (REACH) legislation in force

from 1 June 2007, importers or manufacturers of more than one tonne of chemicals a year must
register with the European Chemicals Agency.
Import restrictions can be product-specific or trade-specific. Many products are subject to

product-specific standards and need to be supported by applicable certificates, product-specific
licences and documentation.
Quite separately, quantitative restrictions or limitations and anti-dumping duties may apply to
certain imported commodities. In these instances an import licence from the Department for
Business, Enterprise and Regulatory Reform (BERR) may be required.
Goods imported to the UK must also comply with domestic business standards, including
product safety, manufacturing, patents and health and safety regulations.
Proof of Origin
The EU has a requirement for imports of textiles and clothing from non-EU sources to provide
"proof of origin", most usually with a Certificate of Origin.
The European Commission has identified the need to secure supply chains for goods leaving and
entering the EU. However, increased customs checks are likely to lead to delays in journey times
for consignments, and possibly longer shipping lead times.
In response, HM Revenue & Customs is introducing a new status for businesses - Authorized
Economic Operator (AEO). While the scheme is not compulsory, companies that meet the
requirements of the scheme will be registered as AEOs and can take advantage of simplified
customs procedures that relate to the security and safety of their goods in transit.
UK, the gateway to European Union single market, is a long and stable trade partner ranking
second in India’s global trade partnership after the US and third in terms of foreign direct
investment in India. India considers UK as one of the most important sources of FDI for India
not only amongst the EU countries but also vis-à-vis other countries in the world. With a share
of 37 percent in EU’s total outflow of FDI in non-EU countries, UK is a very natural and
important partner for a country like India that requires massive investment for its
infrastructural needs. The Indo-British Partnership was started in 1993 by the then Indian and
British Prime Ministers P V Narsimha Rao and Sir John Major respectively. The economic
reforms initiated by the Indian government in 1991 and recovery of the British economy had
opened up countless opportunities for Indo-British collaboration.
On the trade front, the bilateral trade has increased to 100 per cent in the last five years and it
is increasing at a rate 20 per cent per year. UK is the 4th largest trading partner of India with
bilateral trade of US $ 9.8 billion in 2006-07, which is about 3 per cent of India’s total trade.
Percentages of bilateral trade compared to total trading basket of UK (US $ 1 trillion in 2006)
are negligible. This again indicates an immense potential existing between the two countries.
There is a growing realization in the UK of the immense business opportunities in India. The
House of Commons Select Committee on Trade & Industry in June 2006 published its report on
“Trade and investment opportunities with India”. Their major findings were that the UK was not
as engaged with India’s markets as it should be, the Indian market was liberalizing at a pace not
fully appreciated in the UK, and the UK’s institutional arrangements to support trade and
investment with India were characterized by enthusiasm but also by confusion. Different
mechanisms have been set up to oversee economic cooperation between India and the UK.
Government Policies (Source: Annual Report 2007 (Textile Ministry)
1. There are no restrictions regarding location for establishing manufacturing units.

2. All producers of Clothing and Accessories are exempt from obtaining Industrial
License to manufacture. The declicensed undertakings, however, are required to file
an Industrial Entrepreneur Memoranda (IEM) in Part 'A' with the Secretariat of
Industrial Assistance (SIA), and obtain an acknowledgement. No further approval is
required.
3. From 1st April 2000, Govt. Of India reduced tariffs on: Manmade Fibers & Filament
Yarns from 35% to 20% · Cotton Yarn from 25% to 20% · Spun, Blended, and
Woolen Yarn from 40% to 20 %
4. India agreed to bind its tariffs on 265 textile & apparel products (Textured Yarns of
Nylon & Polyester, Filament Fabrics, Sportswear, and Home Textiles.)
5. Apparel products are free from Excise Duties & various Taxes.

6. Customs duty on Raw Materials such as DMT, PTA and MEG reduced from 10% to
7.5%.
7. For Small Scale Industries there is Full Exemption Limit being increased from Rs.1
crore to Rs.1.50 crores.
8. Most of the products fall under HS code 61 and 62 carry an import duty of 56.83%
which includes 30% basic duty, 16% additional duty and 4 per cent special additional
duty.
9. Excise Duty Exemption on specified Textile Machinery Items is withdrawn and 8%
Excise Duty is imposed.
10. CST rate reduced from 4% to 3% with effect from April 1, 2007.
11. Removal of surcharge on income tax on all firms and companies with a taxable
income of Rs.1 crore or less.
Promotional Scheme (Source: Annual Report 2007 (Textile Ministry))
1. The Export Promotion Capital Goods (EPCG ) Scheme : The scheme

facilitates import of capital goods at 3% concessional rate of duty with
appropriate export obligation. The import of second hand capital goods without any
restriction on age is also allowed under the new Foreign Trade Policy as
announced on April, 2008.
2. The Duty Exemption Pass Book (DEPB) Scheme: DEPB credit rates have been
prescribed for 83 textiles and clothing products. The nomenclature and rates for
DEPB entries pertaining to certain textile products have been rationalized. The DEPB
credit rates were reduced by 45% across the board in all textile items on September 23,
2004, by Department of Commerce. DEPB credit rates were again revised on
December 30, 2004 by announcing changes to the extent of 60% reduction in
respect of cotton textile items, 30% reduction in blended textile items and 22.5%
reduction in man-made textile items in place of 45% reduction effected earlier.
3. The Duty Drawback Scheme : The exporters are allowed refund of the excise and
import duty paid on raw materials under the scheme to make the products more
competitive in the International market. All Industry Duty Drawback Rates were last

revised in May 2005.
4. The Apparel Park for Exports Scheme : The Apparel Park for Exports Scheme
(APES), a centrally sponsored scheme, was launched in March 2002 to set up apparel
units of international standards at potential growth areas and concomitantly give fillip to
textiles exports. Twelve project were sanctioned under the scheme at Tronica City &
Kanpur (U.P.), Surat (Gujarat ) , Thiruvananthapuram (Kerala), Visakhapatnam
(Andhra Pradesh ) , Ludhiana (Punjab ) ,Bangalore (Karnataka), Tirupur &
Kanchipuram (Tamil Nadu), SEZ Indore (Madhya Pradesh), Mahal, Jaipur
(Rajasthan) and Butibori- Nagpur (Maharashtra).
5. The Scheme for Integrated Textiles Parks (SITP): The Government launched the
'Scheme for Apparel Parks for Exports (SITP) in August 2005, by merging the two
existing schemes, viz. Apparel Park for Export Scheme and Textile Centers
Infrastructure Development Scheme. The Scheme, a public –private partnership, is
being implemented through a Special Purpose Vehicle (SPV). The industry associations/
group of entrepreneurs are the main promoters of SITP.
6. Technology Up gradation Fund Scheme: In view of the urgent need for stepping up the
process of modernization and technology. Up gradation of the Textile industry in India,
Ministry of Textiles launched a Technology Up gradation Fund Scheme (TUFS) for the
Textile and Jute Industry w.e.f. 01.04.1999 and the scheme will be continued during the
Eleventh Plan. Against a provision of Rs.535 crore in 2006-07 for the scheme, Rs.911
crore has been allocated for the same for 2007-08. The scheme provides for 5% interest
reimbursement in respect of loans availed there under from the concerned Financial
Institutions (FIs) for investments in benchmarked technology for the sectors of the Indian
textile industries specified there under.
EXPORT PROMOTION COUNCILS

Source: Annual Report 2007 (Textile Ministry)
1. Apparel Export Promotion Council (AEPC)

The Apparel Export Promotion Council (AEPC) was incorporated on February 22, 1978,
to promote exports of readymade garments from India. The Council was
administering the exports entitlements quota in respect of readymade garment
items, which were subject to restraint in USA, European Union and Canada .
Besides its headquarter at New Delhi, the Council has Regional Offices at New
Delhi, Jaipur (Rajasthan), Ludhiana (Punjab), Mumbai (Maharashtra), Surat (Gujarat),
Chennai (Tamilnadu ) ,Bangalore (Karnataka), Kochi (Kerala) and Kolkata (West Bengal).
2. Apparel International Mart Project
The Apparel Export Promotion Council has constructed an Apparel International Mart (AIM) at
Gurgaon, at an estimated cost of Rs. 63.62 crores (including the land cost of Rs. 12.10 crores),
which is borne by Government of India, and Rs. 57.10 crores had been released so far. The
Mart will have centrally air-conditioned showrooms (about 250 nos) which will be given either on
lease or on license basis to the established garment exporters. These will provide a world class
facility to the apparel exporters to showcase their products and serve as one shop for reputed
international buyers. The Project is near completion. The Head Offices of AEPC & ATDC have
already shifted to Gurgaon and started functioning effectively from March, 2006. Shri
Shankersinh Vaghela, the Hon'ble Minister of Textiles inaugurated the Auditorium of AIM on
June 13, 2006.
Special Incentives Given to Textile Industry
1. Special Incentives to Readymade Garment, Power looms and Made-up Garment

industries:
2. Benefits under Government of India’s schemes such as Apparel Park Scheme, Textile
Centre Infrastructure Development Scheme (TCIDS)
3. Modernization of units of this sector through Technology Up gradation Fund Scheme

(TUFS), Group Work Shed Scheme.
4. Exempted from the binding of minimum wage fixation on a daily basis.
5. An Apparel Training Institute would be set up with the assistance of Apparel Export
Promotion Council in the State, so that maximum number of trained worker could get
employment in the Ready-made Garment industry.
6. Efforts to establish a national level fashion designing technology institutes in the States in
order to facilitate textile industry of the States regarding the information for design
development and to provide forecasts.

7. Development of the process house through private participation by providing necessary

facilities and if required their cases would be considered by the committee for Mega
Projects.
8. The provision related to labor laws declared for Special Economic Zone will be made
applicable to the projects / special areas established such as Apparel Park, Garment
Complex and unit established/being transferred under Group Work Shed Scheme
CHAPTER 6:-
COMPETITIVE ENVIRONMENT

6.3 Major Players in Indian RMG Export


Table 6.1
 CHINA  Korea
 Thailand  Sri Lanka
 Mexico  Italy
 CBI  Cambodia
 Taiwan  Pakistan
 Bangladesh
 Turkey
 Philippines
.
Major competitors and their Market Share

In 2006, the largest manufacturers and exporters of apparel were countries from the Asia-Pacific
region which includes countries like China, Hong Kong, Philippines, Malaysia, Indonesia,
Bangladesh, Sri Lanka, Pakistan, and Thailand. The other major apparel manufacturing nations
were USA, Italy, Germany and Mexico.

Figure 6.1
Source: fashionproduct.com
1. India has a large fibre base, and ranks as the world’s third-leading producer of cotton,
accounting for 15 percent of the world’s cotton crop. India produces a wide variety of
cotton, providing operational flexibility for domestic textile producers. In the man made
fibre sector, India is the world’s fifth-largest producer of polyester fibres and filament
yarns and the third-largest producer of cellulosic fibres and filament yarns.
2. India is the world’s second-largest textile producer (after China), and is diversified and
capable of producing a wide variety of textiles. The spinning segment is fairly
modernized and competitive, accounting for about 20 percent of world cotton yarn
exports.

3. India’s textile and apparel industry benefits from a large pool of skilled workers and
competent technical and managerial personnel. India’s labor is inexpensive; hourly labor
costs in the textile and apparel industry average less than 5 percent of those in the U.S.
textile and apparel industry.
4. India is the third largest producer of cotton with the largest area under cotton cultivation
in the world. It has an edge in low cost cotton sourcing compared to other countries.
5. Large Indian players such as Arvind Mills, Welspun India, Alok Industries and Raymond
have established themselves as 'quality producers' in the global market. This recognition
would further enable India to leverage its position among global retailers.
Large raw material base :- India has a rich raw material base, especially cotton which has seen
improved productivity in the country under the Cotton Technology Mission, Wide variety of
cotton produced India, making India capable of catering to various segments of world trade,
Indian industry has ability to handle different materials - cotton, wool, silk and jute with equal
skill
Positive developments in the Textile Policy: - Reservation for small scale sector, especially
key segments removed over last few years, Fiscal anomalies in terms of excise duty structure
removed
Flexibility in production: - Capabilities across the entire value chain within the country reduces
lead time for production and reduces intermediate shipping time, Indian companies have
flexibility and skilled manpower to handle small orders with complex designs
Product development and design capabilities: - Several institutes in India for textile
development, the major one being National Institute of Fashion Technology (NIFT), several
leading colleges also offer courses in Textile Engineering
Major Players in Indian RMG Export
Table 6.2

 Arvind Mills  Ashima Syntex

 Raymond  KG Denim
 Reliance Textiles  Sanghi Polyesters Ltd.
 Vardhaman Spinning  S. Kumar Synfabs Ltd.
 Welspun India  BSL Ltd.
 Century Textiles  Indian Rayon
 Morarjee Mills  Alok Textiles
 Indo Rama  Birla Group Dormeuil Birla VXL Ltd.
 GTN Textiles  Gokuldas Images
 Ginni Filaments Ltd.  Hanil Era Textiles
 LNJ Bhilwara Group  Oswal Knit India
 Mafatlal Textiles  Niryat Sam Apparels
 Modern Group
 Filaments India Ltd
Source: www.india-craft.com
CHAPTER 7:-
SWOT ANALYSIS.

7.1 Strengths
7.2 Weaknesses
7.3 Opportunities
7.4 Threats
7.1 Strengths
1. Indian apparel industry is an Independent & Self-Reliant industry.
2. Abundant Raw Material availability that helps industry to control costs and reduces
the lead-time across the operation. In addition to this Availability of Low Cost and
Skilled Manpower provides competitive advantage to industry.
3. Availability of large varieties of cotton fibre and has a fast growing synthetic fibre
industry.
4. India has great advantage in Spinning Sector and has a presence in all process of
operation and value chain.

5. India is one of the largest exporters of Yarn in international market and contributes
around 25% share of the global trade in Cotton Yarn.
6. The Apparel Industry is one of largest foreign revenue contributor and holds 12% of
the country’s total export.
7. Industry has large and diversified segments that provide wide variety of products.
8. Growing Economy and Potential Domestic and International Market.
7.2 Weaknesses
1. Indian Apparel Industry is highly Fragmented Industry and lower Productivity in

various segments
2. Industry is highly dependent on Cotton.
3. Lack of Technological Development that affect the productivity and other activities in
whole value chain.
4. Infrastructural Bottlenecks and Efficiency such as, Transaction Time at Ports and
transportation Time.
5. Unfavourable labor Laws.
6. Lack of Trade Membership, which restrict to tap other potential market.
7. Lacking to generate Economies of Scale.
8. Higher Indirect Taxes, Power and Interest Rates.
7.3 Opportunities
1. Growth rate of Domestic Textile Industry is 6-8% per annum.

2. Large, Potential Domestic and International Market.
3. Product development and Diversification to cater global needs.
4. Elimination of Quota Restriction leads to greater Market Development.
5. Market is gradually shifting towards Branded Readymade Garment.
6. Increased Disposable Income and Purchasing Power of Indian Customer open New
Market Development.

7. Emerging Retail Industry and Malls provide huge opportunities for the Apparel,
Handicraft and other segments of the industry.
8. Greater Investment and FDI opportunities are available.
7.4 Threats
1. Competition from other developing countries, especially China.

2. Continuous Quality Improvement is need of the hour as there are different demand
patterns all over the world.
3. Elimination of Quota system will lead to fluctuations in Export Demand.
4. Threat for Traditional Market for Power loom and Handloom Products and forcing
them for product diversification.
5. Geographical Disadvantages.
6. International labor and Environmental Laws.
7. To balance the demand and supply.
8. To make balance between price and quality.
CHAPTER 9

MAJOR FINDINGS
Key Findings
1. Demand for readymade garments in rural India is expected to increase at a CAGR of

16.5% during 2008-2010. Women apparel market (in value terms) is anticipated to
grow at a CAGR of 17.79% till 2010. The organized apparel retailing in India is
projected to surge at a CAGR of 30% from 2008 to reach Rs. 52,289 Crore in 2010.
Increasing at a CAGR of 25%, branded apparel industry for women is expected to hit
Rs. 18,351 Crore by 2010.
2. The organized lingerie retail market in India is expected to touch Rs 4000 Crore mark
by 2009.
3. Liberalization of FDI policy with up to 100 per cent foreign equity participation may
help in increasing production capacity.
4. By creating state owned cargo shipping mechanism with rationalizing fiscal duties,
upgrading technology through the technology up gradation fund scheme (TUFS)
5. As per today’s demand, eco-friendly garment are more demanded in the UK market, we
can tap the target market.
6. By setting up of quality checking laboratory, more quality product will be exported in

UK. With better value added product India can expand it’s market in UK
CHAPTER 9

RECOMMONDATION AND
CONCLUSION
Recommendations
1. Deli cense the import of used textile looms, and expedite the implementation of the
present decision to allow imports of PU (1982-87 vintage) models
2. Create, within a short time period, one or more world-class Apparel and Textile Export
Parks, with Special Economic Zone [SEZ] status, in selected port cities- Mumbai and
Tamil Nadu having export clusters, follow international best-in-class practices in these
parks, including customs bonded warehousing, zone -based export clearances, etc.
3. Allow textile and apparel cluster areas to set up distributive generation model for power
4. Disparity in excise duty structures on the basis of fibre and Remove enterprise

size in the textile sector.

a) Fix uniform rate of excise/ duty across all type of yarns, fabrics, knitwear,
processing etc, and remove - scale-base duties, which are creating uncompetitive
distortions.
b) Rationalize excise duty structure across the entire value chain from fibre to
garment retailing. Levying of moderated, uniform VAT should be the long-term
objective.
c) Do away with exemptions on ginned cotton, hank yarn, grey fabric, hand
processors, knitwear and hosiery and Small Scale Industry [SSI] units in garments.
d) Rationalize excise duty incidence at spinning stage. Spinning bears 55% of total
excise revenue collections from this industry, but contributes only 39% to value
addition.
e) Equalize Additional Excise Duty (Textile and Textile Articles) on mm/yarn and
cotton yarn.
5. Allot a part of the available textile and apparel quotas to regular, large importers having
branch offices or dedicated buying houses in India
6. Cap the premium level for all transferable quotas, to bring down transaction costs in apparel
exports and improve utilization levels
7. Initiate measures to improve customs procedures, especially with regard to

arbitrary valuation of imported goods, through following steps:
a) Accept a self declaration basis for hazardous -materials-free certification, and for
valuation, accompanied by international accountant’s third party certification
b) Introduce a random audit process for checking valuation rather than impose an
arbitrary value on shipments
c) Have a consultative panel including UK textile body, to resolve issues, as an

alternative to appellate process
8. Allow FDI by buying houses in merchandising and trading of textiles for export as well as
domestic sector, which will bring in management processes and skills into the domestic
industry at par with levels in other competing countries
Conclusion
In view of non-tariff restrictions on imports of garments from India by the developed West, India
needs to strike a fine balance to protect exports of her garments, by concentrating in countries in
the Southern hemisphere. A free-trade agreement which encompasses South-East Asia
(synthetic); India (cotton); Far East (silk) and Pacific Ocean countries of Australia & New
Zealand (wool) will make for a more meaningful spread of its garment exports.

This issue assesses the main factors affecting competitiveness of the apparel and textile industry
covering trade barriers, industrial and trade policies, infrastructure, buying power, financial
capital, managerial skills and the impact of Multinationals on socio-economic stability
References
 Webliography
www.aepcindia.com dated 21, 23, 24, 30 April 2008
www.commerce.nic.in Dated 28 April 2008 at 3.45 pm
www.indiainfodrive.com dated 20 April 2008 At 10.38 Am

www.interiortextiles.co.uk dated 5 may 2008 at 4.52 pm
www.economywatch.com dated 21 April 2008 at 3.23 pm
www.prospects.ac.uk dated 23 April 2008 at 11.38 Am
www.india-crafts.com 27 April 2008 at 11.32 Am
www.indiainbusiness.nic.in/index.htm 29 April 2008 at 5.19 pm
www.nmcc-vikas.gov.in/sector/Pages/Sector.aspx 27 April 2008 at 3.15 pm
www.icdfc.com dated 22 April 2008 at 11.00 Am
www.indiantextilejournal.com dated 21 April 2008 at 12.45 pm
www.febre2fashion.com dated 21April 2008 11.30 Am

Export Potential of RMG From India To UK

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Export of Ready Made Garment to United Kingdom

INTERNATIONAL INSTITUTE OF FOREIGN

Export potential of Ready Made Garment to United

“Indo- UK Trade With Reference To Ready Made Garment Sector

Name of Supervisor: - Submitted By:-

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 1

Chapter Contents Pages

Certificate by the Supervisor iv

Conceptual framework Vii

I. Indian Ready Made Garments Industry. 12-18

1.1 Introduction to Readymade Garments.

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 2

2.7 Market Characteristics and Segmentation

III. Ready Made Garment Industry of UK 34-38

3.1 Overview of UK Economy.

IV. Trade Relation between India and UK 40-47

4.1 Overall Trade Performance

V. Government Support. 49-56

5.1 Indian Foreign Trade Policy regarding RMG.

VI. Competitive Environment. 58-60

6.1 Major Competitors.

VII. SWOT Analysis. 62-63

VIII. Major Findings 65

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 3

IX. Recommendations and Conclusion 67-69

Certificate of Originality by the Student

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 4

Certificate of Originality by the Supervisor

(Project Guide) (Director)

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 5

Working on things which are of your interest always gives pleasure.

Place-INDORE ANIL SHRIVASTAVA

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 6

Place:-INDORE ANIL SHRIVASTAVA

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 7

Research Rationale and Objective

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 8

1. To Study global scenario of RMG

2. To study India scenario of RMG

3. To analyze the export potential of RMG from India to UK

4. To identify Strength, weakness, opportunities and threats for Indian RMG

5. To Recommendation proper production of Indian RMG

6. To analyze export potential of Indian RMG to world

7. To analyze the growth trend of Indian RMG for last 5 years

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 9

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 10

INDIAN RMG INDUSTRY

1.1 INTRODUCTON TO READY MADE GARMENTS.

1.2 OVERVIEW OF INDIAN ECONOMY.

1.3 INDIAN RMG INDUSTRY (AN OVERVIEW).

1.4 GLOBAL RMG INDUSTRY AND INDIA’S

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 11

1.2 Indian Economy (Overview).

Per Capita Income

1.3 Indian RMG Industry (An Overview)

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 14

Structural Characteristics of RMG industry

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 15

2. Cost advantages of manufacturing textiles and garments in India is derived from:

i. Abundant supply of inputs at competitive prices

1.4 Global RMG and India’s Position

INTERNATIONAL INSTITUDE OF FOREIGN TRADE & RESEARCH 16