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he textile products continue to play For 2004-05 the target for the export of
an important role in the total export
textiles has been fixed at US$ 15,160
basket of the country. The data
about export targets for 2004-05 and million, against US$13,500 million set
the latest status of exports is given at during 2003-04.
Table 10.1.

Table 10.1
(Value: US $ in Million/Rs. In Crores)
S. Sector Target Apr.-Sep. Apr.-Sep. % increase/ % target
No. 2004-05 2003 2004 decrease of achieved
2004 over 2003 (US$)
US$ Rs. US$ Rs. US$ Rs. US$ US$

1 Readymade 6,000 11,591.5 2,491.2 12,652.4 2,779.1 9.2% 11.6% 46.3%

2 Cotton Textiles 4,200 6,604.7 1,419.5 7,568.9 1,662.5 14.6% 17.1% 39.6%
3 Man-made textiles 2,200 3,745.8 805.1 4,509.0 990.4 20.4% 23.0% 45.0%
4 Wool & Woollen 400 725.3 155.9 1,051.5 231.0 45.0% 48.2% 57.7%
5 Silk 625 1059.6 227.7 1,269.1 278.8 19.8% 22.4% 44.6%
Total 13,425 23,726.9 5,099.4 27,050.9 5,941.6 14.0% 16.5% 44.3%
6 Handicrafts (a+b) 1,400 2,245.1 482.5 1,945.5 427.3 -13.3% -11.4% 30.5%
a) Carpet 600 1122.7 241.3 1,237.8 271.9 10.3% 12.7% 45.3%
b) Other Handicrafts 800 1122.4 241.2 707.6 155.4 -37.0% -35.6% 19.4%
7 Coir 85 158.6 34.1 223.1 49.0 40.7% 43.8% 57.6%
8 Jute 250 539.9 116.0 568.6 124.9 5.3% 7.6% 50.0%
Total 15,160 26,670.5 5,732.0 29,788.1 6,542.8 11.7% 14.1% 43.2%

Source : Foreign Trade Statistics of India (PC&C), DGCIS, Kolkata.


Textile exports recorded a growth of (i) Readymade Garments:
15.3% in 2002-2003 and 6.0% in 2003- Readymade garments account for
2004. During the period April-November approximately 42% of the country’s total
2004, textile exports were US$ 8348.5 textile exports. In the year 2002-03 and
million, recording a growth of 4.6% as 2003-04 they logged a growth of 15.5%
compared to the corresponding period of and 5.5% respectively. During April-
previous year. November, 2004, readymade garment

m i n i s t r y o f t e x t i l e s

Shri R. Poornalingam, Secretary (Textiles) inaugurating the ATDC Gurgaon Centre

exports totaled US$ 34.5 million, recording growth of 30.2% in 2002-03 and 28.2% in
a growth of 2.1% as compared to the 2003-04. During the period April-Novmber
corresponding period of previous year. 2004, man-made textiles exports were
US$ 1286.6 million, recording a growth of
(ii) Cotton Textiles including
12.9% as compared to the corresponding
handlooms: The export of cotton textiles
period of previous year.
comprising yarn, fabrics and made-ups
(Mill made / Powerloom/ Handloom) (iv) Silk Textiles: The export of silk
constitute more than 2/3rd of exports of all textiles recorded a growth of 3.3% to 2002-
fibres/yarns/made-ups. Cotton textiles 03 and 18.4% in 2003-04 compared to
exports recorded a growth of 9.1% in previous year. During the period April-
2002-03 and 4.2% in 2003-04. During the November 2004, silk textiles exports were
period April-November 2004, cotton textile US$ 365.0 million, recording a growth of
exports including handlooms were US$ 15.1% as compared to the corresponding
2144.1 million, recording a growth of 5.4% period of previous year.
as compared to the corresponding period
(v) Woollen Textiles: The exports of
of previous year.
woollen textiles declined by 6.8% in 2002-
(iii) Man-made Textiles: The export of 03, compared to previous year. The
man-made textiles have recorded a decline has been attributed to sluggish

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market conditions, over-stocking in major quantitative restraints in certain

markets. However, woollen textiles have countries, and are regulated by the
recorded a significant growth of 33.0% in Export Quota Entitlement Polices
2003-04 as compared to the previous formulated by the Government from time
year. During the period April-November to time. The allocations are made to the
2004, woollen textiles exports were US$ exporters as per these policies. A
294.0 million, recording a growth of 32.7% notification had been issued to continue
as compared to the corresponding period the residuary provisions in the year
of previous year i.e. 2003. 2005.

(vi) Handicrafts including Carpets: EXPORT PROMOTION

The exports of handicrafts including MEASURES INITIATED DURING
carpets recorded a growth of 24.4% in THE YEAR
2002-03 as compared to the previous
year. However, handicrafts including (i) Announcements in the Union
carpet exports declined by 23.2% in 2003- Budget 2004-05: In order to strengthen
04 as compared to the previous year. domestic textile industry for meeting the
During the period April-November 2004, growing global competition, the following
exports of handicrafts including carpet important announcements were made in
were US$ 570.9 million, registering a the Union Budget 2004-05:
decline of 16.7% as compared to the ❖ Except for mandatory excise duty on
previous year. polyester filament yarn including
(v) Coir: Coir exports recorded a texturised yarn, synthetic and
growth of 18.8% in 2002-03 and 6.8% in artificial fibres and synthetic and
2003-04. During the period April- artificial filament yarns, the whole
November 2004, coir exports were US$ value addition chain given excise
65.3 million, recording a growth of 40.7% exemption option;
as compared to the previous year. ❖ Additional Excise Duty on Textiles
(vi) Jute: Jute exports declined by & Textile Articles (AT&T) and
33.7% in 2001-02 and thereafter recorded Additional Excise Duty (Goods of
a growth of 45.9% in 2002-03 and 23.9% Special Importance) Act abolished;
in 2003-04. During the period April- and
November 2004, jute exports were US$
❖ Basic customs duty on various
170.8 million, recording a growth of 9.9%
textile machinery items and spare
as compared to the previous year.
parts reduced to 5%.
ADMINISTRATION OF EXPORT (ii) Announcements in the Union
ENTITLEMENTS (QUOTAS) Budget 2005-06: To strengthen domestic
India’s exports of textiles and clothing textile industry for meeting the growing
(including knitwear), were subjected to global competition, the following important

m i n i s t r y o f t e x t i l e s

announcements have been made in the particularly beneficial to the textile industry
Union Budget 2005-06: are:

● The allocation to TUFS has been ❖ Handicrafts and Handloom sectors,

enhanced to Rs. 435 crore, along among others, have been identified
with an additional capital subsidy of as Special Focus Initiatives;
10% for the processing sector;
❖ Duty free import of trimmings and
● 30 items of textiles products and embellishments for Handloom &
hosiery have been identified for Handicrafts sectors increased from
dereservation from Small Scale 3% to 5% of FOB value of exports;
Industry; ❖ Import of trimmings and
● Creation of a Special Purpose embellishments and samples
Vehicle (SPV) for improving exempted from Counter Vailing
infrastructure in manufacturing with Duties (CVD);
an investment of Rs. 10,000 crore; ❖ Handicraft Export Promotion
Council authorised to import
● Excise Duty on Polyester Filament
trimmings, embellishments and
Yarn (PFY) and Polyester
samples for small manufacturers;
Texturised Yarn (PTY) reduced from
24% to 16%; ❖ Establishment of a new Handicraft
Special Economic Zone; and
● Optional CENVAT Scheme has
been extended to stand alone ❖ Leftover materials and fabrics of the
Texturising Units at 8% excise duty 100% EOUs upto 2% of CIF value
with CENVAT credit or at nil duty or quantity of import shall be allowed
without CENVAT credit; to be disposed of on payment of duty
on transaction value only.
● Peak customs duty rates reduced
from 20% to 15%; and (iv) Announcement of National
Textile Policy: - One of the main
● Duties on specified textile machinery
objectives of the National Textile Policy
items, raw materials and spare parts
(NTxP-2000) announced in November
for manufacture of such machinery
2000 is to facilitate the textile industry
brought down from 20% to 10%. The
to attain and sustain a pre-eminent
existing concessional duty of 5% on
global standing in the manufacture and
some other machinery is being
export of clothing. The policy
endeavours to achieve the target of
(iii) Announcements in the new textile and apparel exports from the
Foreign Trade Policy : The new Foreign present level to US $ 50 billion by 2010
Trade Policy contains a number of positive of which the share of garments will be
features, and the features which are US $ 25 billion.

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(v) Technology Upgradation Fund (viii) Advance Licensing Scheme: With

Scheme: In view of the urgent need for a view to facilitating exports and to access
stepping up the process of modernisation duty free inputs under the scheme,
and technology upgradation of the textile standard input-output norms for about 300
industry in India, Ministry of Textiles textiles and clothing export products have
launched a Technology Upgradation Fund been prescribed and this scheme
Scheme (TUFS) for the textile and jute remained under operation.
industry for a five years time frame from
(ix) Duty Exemption Pass Book
01.04.1999 to 31.03.2004. The scheme
(DEPB) Scheme: DEPB credit rates have
has since been extended till 31.03.2007.
been prescribed for 83 textiles and
The scheme provides 5% interest
clothing products. The nomenclature and
reimbursement in respect of loans availed
rates for DEPB entries pertaining to certain
thereunder from the concerned financial
textile products have been rationalized.
institutions for investments in benchmarked
The DEPB credit rates were reduced by
technology for the sectors of the Indian
45% across the board in all textile items
textile industries specified thereunder. An
on 23.09.2004. While addressing the
additional option has been given to
concerns of certain segments of the trade,
powerloom units for 20% capital subsidy
the DEPB credit rates were again revised
under Credit Linked Capital Subsidy
on 30.12.2004 by announcing changes to
(CLCS-TUFS) upto a cost of Rs. 100 lakh
the extent of 60% reduction in respect of
in eligible machinery with facility to obtain
cotton textile items, 30% reduction in
credit from a credit network that includes
blended textile and woollen items and
all co-operative banks and other genuine
22.5% reduction in man-made textile and
non banking financial companies (NBFC)
silk items in place of 45% reduction
recognized by the Reserve Bank of India.
effected earlier.
(vi) Liberalization of FDI Policy:
(x) Duty Drawback Scheme: The
Government has allowed foreign equity
exporters are allowed refund of the excise
participation upto 100%, through automatic
and import duty suffered on inputs of the
route, in the textile sector with the only
export products under the Scheme.
exception in knitwear/knitting sector.
Department of Revenue announced
(vii) Export Promotion Capital Goods revision in All Industry Rates of Duty
(EPCG) Scheme: The scheme facilitates Drawback (AIR of DBK) on 18.01.2005
import of capital goods at 5% and the changes made effective from
concessional rate of duty with appropriate 19.01.2005. There has been substantial
export obligation. Import of second hand reduction in AIR of DBK in almost all
capital goods without any restriction on textile export products except certain
age is also allowed under the new items of silk and wool sectors. In the
Foreign Trade Policy as announced on revised Drawback Schedule, 165 new
August 31, 2004. entries of textile products have been

m i n i s t r y o f t e x t i l e s

created in addition to earlier 101 entries. Promotion Council is constructing an

The revised rates have been prescribed Apparel International Mart at Gurgaon with
on the basis of weight of the export assistance from Government. For this
product instead of earlier system based purpose a grant of Rs. 15 crore was
on fob value of the product. Besides, in released during 2001-02 and Rs.30 crore
respect of apparel items, the drawback was released during the year 2003-04.
rates have also been given on the basis The Apparel International Mart (AIM)
of composition of textiles. Complex is coming up in an area of 5 acre
with 250-300 showrooms also which are
(xi) Human Resource Development:
being allotted to the exporters. This will
Attention has also been paid to Human
provide a world-class facility to the apparel
Resource Development in the textile
exporters to showcase their products and
sector. Towards this end, particular
serve as one stop shop for reputed
mention deserves to be made of National
international buyers. The work for
Institute of Fashion Technology (NIFT)
construction of apparel mart is in progress.
which is imparting training to Fashion
The apparel international mart is expected
Designers and Fashion Technologists to
to start functioning from September 2005.
cater to the human resource requirements
of garment industry. The NIFT has 7 (xiii) Setting up of modern
branches at Delhi, Mumbai, Kolkata, laboratories: The Ministry of Textiles has
Hyderabad, Bangalore, Chennai and assisted the Textile Committee in setting
Gandhinagar. Ministry of Textiles is also up modern textile and apparels
concerned over the need to improve the laboratories to ensure that the textiles
quality of textile training institutes in the exported from the country meet all
country. Therefore, a Nodal Centre for international environmental standards.
Upgradation of Textile Education has been
(xiv) Apparel Park for Exports
established at the Indian Institute of
Scheme: A centrally sponsored scheme
Technology, Delhi with funding from the
‘Apparel Parks for Exports Scheme’ has
Ministry of Textiles. The Apparel Export
been launched. The scheme is intended
Promotion Council has been running
to impart focussed thrust to setting up of
Apparel Training and Design Centres
apparel manufacturing units of
(ATDCs) at important apparel centres
international standards at potential growth
located at Chennai, Delhi, Kolkata,
centres and to give fillip to exports. Since
Hyderabad, Jaipur, Bangalore, Noida,
the inception of scheme in March, 2002,
Gurgaon, Ludhiana and
twelve project proposals have been
Thiruvananthapuram in order to impart
sanctioned for setting up Apparel Parks
training at shop floor level to meet the
at Tronica City & Kanpur (U.P.), Surat
growing needs of apparel industry.
(Gujarat), Thiruvananthapuram (Kerala),
(xii) Construction of Apparel Visakhapatnam (Andhra Pradesh),
International Mart:- Apparel Export Ludhiana (Punjab), Bangalore

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(Karnataka), Tirupur & Kanchipuram promote textile exports. Besides, events

(Tamil Nadu), SEZ, Indore (Madhya like TEXSTYLES India, Indian
Pradesh), Mahal (Jaipur, Rajasthan) and Handicrafts and Gift Fair, India
Butibori-Nagpur (Maharashtra). These International Garment Fair are also
projects are at various stages of organized in the country to provide an
implemention and five such projects are exposition of India’s capabilities in textile
expected to be completed by the end of and clothing sectors to the visiting foreign
2005. buyers.

(xv) Textile Centres Infrastructure

Development Scheme (TCIDS):
Development of infrastructure facilities at
pre-dominantly textile/apparel sector
areas is one of the thrust areas of NTxP-
2000. For attaining this objective, a new During the year India raised textile-related
scheme (TCIDS) has been launched for implementation issues at various
upgrading infrastructure facilities at international and multilateral fora:
important textile centres. Till date,
● Lack of meaningful integration. Like
eighteen TCIDS project proposals have
the first two stages, third stage
been approved – Pashmylarlam-Distt.
integration programme of EU and
Medak, Sircilla-Distt. Karimnagar and
US did not contain any items of
Warrangal (Andhra Pradesh), Panipat
commercial significance to India. In
(Sector 29, Phase-II, Haryana), Indore
(Madhya Pradesh), Jassol, Balotra- fact, the bulk of integration was
Bithuja belt Barmer Distt. and Pali taking place only at the very end of
(Rajasthan), Narol-Shahwadi- ATC period.
Ahmedabad City, Pandesara-Surat, ● Disregarding of special provisions
Jetpur-Rajkot and Isanpur, Ahmedabad for cotton producing countries. The
(Gujarat), Tirupur and Kancheepuram restraining countries have entirely
(Tamil Nadu), Solapur, Bhiwandi and
ignored the provisions of Article 1:4
Malegaon (Maharashtra), Kannur
in their implementation of the ATC,
(Kerala) and Zakura (Jammu & Kashmir).
with adverse implications for the
These projects are at various stages of
balance of rights accruing to the
cotton producing countries. It is felt
(xvi) Organisation of buyer-seller that cotton producing countries were
meets / fairs in the country as well as to be given a special treatment;
abroad : The Textile Export Promotion however, no additional quota access
Councils have been regularly conducting was granted to cotton producing
seminars, organizing buyer seller meets, countries like India by US, EU or
participating in exhibitions abroad to Canada.

m i n i s t r y o f t e x t i l e s

● Imposition of additional quotas by months period to the entry into force

European Union. Despite the fact of the Agreement. It therefore means
that only eight months remained that all the flexibility provisions shall
before the termination of all quota be carried through upto the end of
restrictions w.e.f. from 01.01.2005, the ATC. However, during 2004
the EU decided to extend its quotas carry forward provisions of the
on textiles and clothing to include the agreement were not being accepted
newly acceding members, which is on the premise that there is no quota
against the WTO charter. in the next year from where carry
forward can be taken. This effectively
● Frequent recourse to trade defence
reduced the provision of flexibility and
measures: Some of the restraining
it would be contrary to the Article 2.16
countries have been taking frequent
of the ATC.
recourse to the anti-dumping and
countervailing measures in respect ● Administrative arrangements after
of India’s textile products although 2005. There was no indication from
their exports are already the restraining countries whether the
circumscribed by quota limits. administrative arrangements (visas,
export certifications) would not be
● Failure of Council on Trade in Goods
insisted upon by them in the quote
(CTG) on making recommendations
free regime starting from
to the General Council in regard to
01.01.2005. India raised the issue
the Doha textile implementation
that the restraining countries should
tirets. One of the two implementation
forthwith notify that there was no
proposals, which was relevant for all
administrative requirement for
restrained countries including India,
clearance of goods reaching on or
required advancing the application
after 01.01.2005.
of the higher “growth-on-growth”
factor of 27%, which was otherwise POST MFA GLOBAL
due on 01.01.2002 to 01.01.2000. ENVIRONMENT
It is a matter of great concern that
Till 31.12.1994, the exports of textiles to
the Council failed to make
certain developed countries (e.g. US;
recommendations in this regard.
member countries of EU; Canada) were
● Denial of Carry forward of Quota in governed by bilateral textile arrangement
2004. As per Article 2.16 of the ATC entered into between India and these
which deals with flexibility provisions countries under the aegis of the Multi-Fibre
it is mentioned that the flexibilities i.e. Arrangement (MFA), outside the rules of
swing, carry over and carry-forward the General Agreement on Tariffs and
applicable to all restrictions shall be Trade (GATT). With effect from
the same as those provided in the 01.01.1995, the quantitative restrictions
MFA bilateral Agreement for the 12 (import quotas) in the bilateral agreements
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under the MFA, were taken over by the big push after the dismantling of the quota
Agreement on Textiles and Clothing (ATC) regime. Top textile importing countries like
contained in the Final Act of the Uruguay USA and the EU are looking towards India
Round negotiations of the GATT. for meeting their import requirements.
India, according to several recent studies,
As per ATC, the textile quotas were to be
is going to emerge as alternative source
phased out and textile sector fully
of supply to China. India’s growth in
integrated into WTO by 01.01.2005.
exports will be driven by value added
The liberalized trading regime would result made ups and apparel as India has
in increased international trade in textiles comparative advantages over its
thus providing greater export competitors in relation to (i) availability of
opportunities; and at the same time relatively inexpensive and skilled
expose the domestic industry to import workforce; (ii) design expertise; (iii) large
penetration in the domestic market. The production base of basic raw material like
industry will have to improve its efficiency home grown cotton, yarns and fabrics; and
and productivity to meet the emerging (iv) availability of wide range of textiles.
global competition.
According to a recent study by CRISIL
Implication on Indian Textile (commissioned by ICMF), the Indian
Industry textiles and apparel industry can achieve
a potential size of US$ 85 billion by 2010.
India has a very strong and diverse raw
Of which, the domestic market potential
material base manufacturing fibres/yarn
would be US$ 45 billion and export
from natural i.e., cotton, wool, silk, jute to
potential would be US$ 40 billion. Nearly
artificial i.e., synthetic, cellulosic and
60% of exports would comprise garments.
multiple blend of such fibres/yarn. India has
This would create 12 million job
competitive advantage in terms of labour
opportunities, 5 million direct jobs in textile
cost also. International Textile
industry, and 7 million jobs in allied
Manufacturers Federation (ITMF)
conducted a comparative manufacturing
cost study of 7 countries including India. ANTI-DUMPING/ANTI- SUBSIDY
This study has indicated that Indian industry CASES
has competitive advantage in terms of raw
material cost and labour cost in (i) General Disclosure issued by EC
manufacture of yarn and fabric. Therefore in the anti-subsidy investigation
MFA phase out may not have much against imports of bed-linen from India:
adverse impact on domestic textile industry. A complaint from the Committee of the
Cotton and Allied Textile Industries
Forecasts for the post quota regime
(Eurocotton) was lodged with the EC on
According to various studies, the Indian 04.11.2002 for initiation of anti-subsidy
textile exports are expected to receive a investigation. In the complaint, the

m i n i s t r y o f t e x t i l e s

Eurocotton alleged some Schemes of Government vide their Official Gazette

Government of India such as DEPB, Notification dated 22.08.2004 has started
Advance Licence, EPZ/EOU, 80 HHC of an investigation to impose General
Income Tax etc. to be subsidizing the safeguards on import of textile garments
export products. The EC initiated anti- from other countries including India. The
subsidy investigation against imports of interested parties were given 30 working
bed linen from India. days’ period following the publication of
the Resolution to put their arguments and
Subsequently, the EC deputed a
provide information and proof in support
Verification Team to visit Government of
of that. Embassy of India, Lima has been
India’s officials and also to have on the
advised by the Ministry to take all
spot verification of the sampled
necessary steps to strongly protest the
companies. The EC verification team
general safeguard measures initiated by
visited India from 26 June-25 July, 2003.
Peruvian Govt. on the exports of garments
In the official meeting, the rationale and
from India. Ministry of Textiles has also
logic of various export promotion schemes
been taking appropriate steps in
were explained to the EC verification team
consultation with stakeholders.
during the presentation. The Team also
visited the sampled companies. (iii) Anti-dumping investigation by
Turkey on the imports of ‘metallised
The EC has issued a General Disclosure in
yarn’ from India: Embassy of India,
this case. On the basis of the investigation,
Ankara in January, 2004 informed the
EC has calculated the subsidy margin in the
Ministry that Turkey had initiated anti-
range of 4.4% to 12.2% on different
dumping proceedings against Indian
companies for imposition of duties. The
export of metallised yarn covered under
Government of India held consultations with
tariff lines 54.04, 54.05 and 56.05. The
EC. The EC vide Council Regulation No.
Turkish authorities had received a
70/2004 dated 17.01.2004 imposed
complaint claiming that ‘metallised, yarn
countervailing duty in the range of 4.4% to
gimped or not & strip and covered with
10.4% with effect from 18.01.2004. The
metal or not’ under HS codes 5605.00,
Government is considering challenging the
54.04 or 54.05 were coming from India at
regulation in the WTO Disputes Settlement
dumping prices to Turkey and caused
Panel as the Regulation is based on
damage to the domestic industry in
surmises which are not correct. A view in
Turkey. As per the published Notification
the matter is being taken in consultation with
of Under Secretariat of Foreign Trade of
Department of Commerce and Permanent
Turkey, the total imports of the said
Mission of India in Geneva.
material from the countries subject to the
(ii) Initiation of Investigation for complaints increased significantly in both
application of General Safeguards on absolute and relative terms. SRTEPC has
import of textile garments from India been coordinating the defense of the case
by Peruvian Government: The Peruvian in consultation with Government of India.

a n n u a l r e p o r t 0 4 - 0 5

TEXTILES COMMITTEE participant laboratories have benefited

immensely by the results of the tests.
The Textiles Committee was established
Apart from getting 8 of its own laboratories
under the Textiles Committee Act, 1963,
certified under ISO 17025, the Committee
with the primary objective of ensuring
has also assisted 3 laboratories in private
quality of textiles both for internal
sector in getting the accreditation under
marketing and exports. Its functions
17025 Standard. Under a project,
include promotion of textiles and textile
sanctioned by the Khadi and Village
exports, research in the technical and
Industries Commission (KVIC), the testing
economic fields, establishing standards for
services have been extended to various
textiles and textile machinery, setting up
Khadi Institutions thereby helping these
of laboratories, data collection etc. institutions to improve quality.
The Textiles Committee besides its A total of 60 units came forward to avail
Headquarters at Mumbai, has 31 Regional the consultancy services under ISO 9000
Offices, with 18 of them with laboratories, (49), ISO 14000 (5), SA 8000 (4) and
including 9 eco testing laboratories. The OSHAS 18000 (2) during the year 2003–
Committee has seven functional divisions 04. One of the features of the
at headquarters, Mumbai (1) Textiles performance during 2003–04 has been
Inspectorate Wing; (2) Textiles Laboratory the coverage of cotton market yards and
Wing; (3) Market Research Wing; (4) ISO ginning/pressing factories (5 units) under
Wing; (5) Vigilance Cell; (6) Accounts the ISO 9000 QMS, which would help in
Wing; and (7) Administration and Co- improving the quality of cotton. The Total
ordination. Quality Management (TQM) Division in
During 2003-04, the Committee remitted Textiles Committee, Mumbai has obtained
certification under prestigious ISO 9000-
to the Government of India Rs.42.40 crore
2001 Standard during the year 2003-04.
towards the cess collection, whereas the
funds received by the Committee for its During the year a major country wide
budgeted expenditure during the said sensitization programme on
financial year was Rs.21 crore. Apart from Modernization of Cotton Ginning &
the cess collected, the Committee also Pressing Factories and Integrated Cotton
generated revenue of Rs.13.5 crore and Cultivation, jointly with TMC. Six seminars
registered an impressive 17% growth. were held at Nagpur, Warangal, Tirupur,
Madurai, Indore and Guntur covering
Textiles Committee has undertaken Inter
approximately 750 units.
Laboratory Proficiency Testing (ILPT) of
textiles, on behalf of National Accreditation The Cluster Development Programme
Board for Laboratories (NABL), during for capacity building of textile & clothing
2003–04. The programme, involving 46 SMEs in 20 clusters continued to be
laboratories covering five chemical tests, implemented during 2003–04.
was successfully conducted and the Strengthening of industry associations
m i n i s t r y o f t e x t i l e s

has been one of the key elements of the themselves. Establishment /

programme. New associations have been Strengthening of the institutions has been
established in Salem (SEA) and Panipat an important element of the programme.
(PEA) and the existing associations in A centre for training of work force in
Cannanore, Karur and Kanpur have stitching of home furnishings has been
initiated measures to strengthen their set up by industry at Karur, The capacity
capacity by way of recruiting professional of local polytechnics at Rajapalayam and
staff. The associations in Tirupur Solapur was strengthened for designing
(SIHMA) and Karur (KTMEA) are being and conducting skill development
strengthened in the area of market programmes to meet the local needs. To
information with the support of ZDH, increase the competitiveness at firm
Germany. Consortium approach is being level, several initiatives were launched
actively promoted as a means to improve with the help of other BDS providers, for
the competitiveness of the SMEs. technology upgradation, productivity
Sensitization workshops on this approach improvement, environmental
were conducted in 17 clusters, covering compliances, quality management, social
2100 SMEs. As a result of these efforts, accountability, skill development,
around 35 consortiums in 14 clusters optimization of water and dyes, energy
covering about 150 SMEs have been auditing, etc.
established / being established for
common business operations such as NATIONAL INSTITUTE OF
procurement of raw-materials, marketing, FASHION TECHNOLOGY (NIFT)
engaging the consultancy services, etc.,
NIFT is a premier institute of fashion
In order to expose the SMEs to better
education in India. It is a college of Design,
technology and work practices, and the
Technology and Management. Ministry
pro-activeness of the industry
of Textiles, in response to the growing
associations, cluster to cluster visits were
need of the fashion industry, both in the
organized which were entirely self-
domestic and international arena, helped
financed by the industry. 60 SMEs from
NIFT in its endeavour diffuse fashion
Kanpur and Solapur visited Tirupur in 4
education throughout the country. The
batches, 25 SMEs from Bhawani and
NIFT is a brand ambassador of fashion
Chennimalai cluster visited Panipat.
business education in India.
These visits have also been helpful in
technology transfer and other business National Institute of Fashion Technology
linkages between the clusters. In (NIFT) was established as the apex body
addition, visits were facilitated for of human resources development for the
Knitwear industry of Tirupur and Home textile & garment and allied sector in 1986
furnishing industry of Karur to modern when the word ‘fashion’ or ‘fashion’ as a
factories in China, which proved to be system of education was completely
extremely useful in benchmarking unknown to the country. The vision of the

a n n u a l r e p o r t 0 4 - 0 5

pioneers in the Ministry of Textiles, practical convenience. The State Level

Government of India and, industry, Management Committee of each Centre
coupled with experience drawn from consisting of representatives from the
institutes in the world through UNDP Government and Industry has the Chief
assistance in the first decade of NIFT’s Secretary or his nominee as the Chairman,
experience helped to establish a hitherto who acts as the link between the Industry
unknown area of fashion education in the and NIFT Centre, State and Central
country. NIFT was established in Government. Registrar of the Centre is a
collaboration with the Fashion Institute of designated member Secretary of the
Technology (FIT), New York. SLMC.

With growing demand from industry The prime objective of NIFT is to assist
across the country in 1995, NIFT the Fashion Industry in India in meeting
established five centres in the major the challenges of industrial
garment centres of India viz. Kolkata, competitiveness on global plane. NIFT
Chennai, Gandhinagar, Hyderabad and also undertakes selected applied research
Mumbai. The Bangalore Centre was studies and applications thereof in relevant
established in August 1997, and Delhi areas of the fashion industry; particularly
Centre received its independent status as concerning the integration of locally
Centre and got segregated from Head produced materials, the requirements of
Office in April, 2004. Simultaneously mass production, improved product design
Head Office was established in New and international marketing. The purpose
Delhi. here is to meet the needs of Indian
Fashion Industry and commerce in respect
The Centres are looked after by Director
of up-to-date information on fashion
who is assisted by Registrar and the other
technology through research and
supporting staff. The Director General is
publication of literature with particular
responsible for the overall coordination
reference to the programs of the fashion
and monitoring of the activities of all
industry in the country; and to provide
Centres and Head Office.
technical assistance to artisans,
NIFT is a Government funded Institution craftsmen, manufacturers, designers and
under the Ministry of Textiles with exporters of fashion products.
Secretary (Textiles) as Chairman of the
Board of Governors (BOG). Besides the LANDMARKS - 2004-05
Chairman, there are 17 members on the
Cluster Development Initiatives
Board of NIFT, including the Director
General, who is the Chief Executive NIFT has taken initiative for Cluster
Officer of the Organization. The Centres Development programmes with the active
are under the Common Management of support of Ministry of Rural Development,
the BOG who in turn has formed Sub- Offices of Development Commissioner
Committees for better management and (Handicrafts), Development

m i n i s t r y o f t e x t i l e s

Commissioner (Handlooms) and National competition, Carom Competition,

Centre for Jute Diversification . In this exhibitions, fashion shows, choreography
regard the Delhi Centre has done a and dance competition. Besides NIFT,
capacity building project in ChandEri many other educational institutions
Cluster which was sponsored by participated in the event. The other NIFT
Government of Madhya Pradesh. The Centres, which were established in 1995,
Gandhinagar Centre completed Cluster viz. Chennai, Kolkata, Gandhinagar,
Development Project for small-scale Hyderabad and Mumbai will be celebrating
ready-made garment manufacturers of their 10 years of existence, in 2005. These
Ahmedabad, wherein the small-scale centres would be organizing a mega event
manufacturers were given inputs for skill to mark the completion of a decade.
upgradation and technology upgradation.
This was sponsored by the Industry Industry Projects
Department of State Government of NIFT also undertakes various research
Gujarat. The initiative of NIFT has been based Industrial Projects. To name a few,
successful in addressing some of the NIFT has designed ‘Breathers’ (Breathing
problems of the clusters. NIFT’s initiatives Masks) for Bikers. The project was
in Cluster Development have opened new sponsored by M/s. John Fowler India Ltd.
avenues for students through sustained In another research based project, NIFT
development of craft cluster by integrating designed mobile case covers for Reliance
it with academic curriculum. Infocom.

International Foundation of Fashion NIFT also participated in projects of

Technology Institutes (IFFTI) various States and Central Government,
Conference which includes, technological and
The 6 th Annual IFFTI Conference, of marketing support to the existing
whose NIFT is one of the founder member, products of Self-Help Groups in
was held on 01.04.2004 at NIFT Campus. Handicrafts Cluster being implemented
under the Swarna Jayanti Swarozgar
Spectrum 2004 - NIFT’s Annual Yojana which is a Centrally sponsored
Galore Scheme, ‘Deen Dayal Hathkargha
Every year NIFT organizes a spectacular Protsahan Yojana’ scheme wherein total
show by students in the form of 1000 New Ikat designs with colour ways
SPECTRUM. The event was organized are being provided for the benefit of
in November 2004 by Delhi NIFT Centre, weavers for better marketability.
which had a mix of cultural events. The
Initiative in North East Region
event showcased students’ creations
through fashion shows in NIFT’s own NIFT was involved in the Design
Amphitheater. The event had a galore of Development and Product upgradation
sports competition, on-the-spot painting project for Eri-Munga Silk product for the

a n n u a l r e p o r t 0 4 - 0 5

Govt. of Arunanchal Pradesh. The Kolkata fashion-forecasting project for National

Centre of NIFT has been identified by Centre for Textile Design website, which
Ministry for Development of North Eastern was sponsored by Office of DC
Region (DONER) for conducting (Handlooms).
Certificate programme of students in
Fashion Clothing. A New Dimension in Accessory
Design Programme
First Alumni Meet
A blossoming fashion industry has
The Delhi Centre of NIFT organized the first resulted in the creation of an equally
meet of the NIFT Alumni Association, in buoyant accessory industry. Realising the
November 2004 which was inaugurated by potential, NIFT introduced specialized
Secretary (Textiles). The Alumni Meet was Accessory Design Programmes in its
attended by a large NIFT Alumni working in Centres. The ‘Accessory Design’
National as well as International programme in New Delhi, Bangalore
organizations in various fields and positions. Centre offers ‘Peopleal Product and
The Alumni shared their experiences about Interior Accessories Designing’
the development in the fashion industry and programme, Chennai Centre offers
the need for more professionals in the line. ‘Footwear and Leather Products
They also emphasized on hands-on Designing’, Gandhinagar Centre offers
experience of the NIFT students and ‘Jewellery and Precious Products
importance of four-year course in NIFT. Designing’, and, Hyderabad Centre offers
They also spoke about the future growth and ‘Interior Products, Handicrafts, Mix Media
emerging sectors in the fashion industry. and Glass’ programme.
The Alumni Meet was an eye-opener for
Fashion Studies an Elective Subject in
various students and faculties of NIFT.
Schools Affiliated to Central Board of
Infrastructure Development Secondary Examination (CBSE) - NIFT
would prepare the Course Curriculum
All the NIFT Centres now have their
permanent campuses. Further, steps to In this connection, NIFT has designed the
build academic blocks in line with course curriculum and prepared the
requirements have already been initiated. course content, as well as prescribed
NIFT is also in the process of building girls’ minimum infrastructure and facility for
hostel at its various centres. The in-house conducting the courses in fashion studies
talent would be utilized for designing in schools affiliated to CBSE.
Interiors of the hostels. Fashion Studies will create an
understanding of the fundamental
Fashion Forecasting Project
concepts of fashion. The objective or the
NIFT being a premier institution in course is to introduce students to
Fashion and Design has also undertaken appropriate fashion technology and

m i n i s t r y o f t e x t i l e s

understand the inter-relationships under “Yashaswini” Scheme

between different industries and services sponsored by Department of
that comprise the fashion business. Industries and Commerce,
Government of Karnataka.
Gender Justice in NIFT
■ Skill development programmes for
Understanding the importance of
the wives of weavers, backward
womenfolk as workforce, and in the overall
community in Warangal district and
context of providing employment
in West Godavari District.
opportunities to women without any
gender bias, NIFT has undertaken various ■ Training programme and economic
projects for the uplift of women. These rehabilitation of the trafficked victims
include conducting various short-term have been completed along with
programmes for employment generation SANLAAP, a facilitating agency of
and instilling economic security in the International Organisation of
women both in urban and rural areas. One Migration (IOM).
such programme was organized in
In addition, various programmes for the
Karnataka and other programmes are:-
benefit of the industry are also undertaken
■ 21 days Skill Development in co-operation with the NGOs / State
Programme for woman beneficiary Government.