INTRODUCTION

Indian TEXTILE Industry

Indian Textile industry is one of the leading industries in the world. Indian Textile industry has
been taken very big strides. In last few decades, when the scenario started changing after the
economic liberalization of Indian economy in 1991, the textile industry has grown to the status of
a leading sector in the country with a sizeable base. The open economy has been given more trust
of the Indian textile industry, which has now successfully become one of the largest industries in
the world.

The textile industry has largely depended upon the manufacturing and export. The textile
industries play a major role in the economy of the country. India earns about 27% of total foreign
exchange through textile export and Indian textile industry contributes 14% of total industrial
production of the country. The textile industry also contributes around 3% to the GDP of the
country and it given the largest employment in the country. The textile industry has been
generated more than 35 million people and the industry will generate 12 million new jobs in year
2010. The Indian textile industry has been taking a new activity by entering the Chinese market.
Because most of the top global retailers (JC Penny, Nautica, Docker and Target) have their
sourcing network in India. Indian textile which is worth US $ 23 billion is expect to register
fourfold increase US $ 91- 100 billion in the next 20 to 25 years.

HISTORY
No one knows when exactly the spinning and weaving of textile began. It has been said that
people knew how to wave even 27000 years ago. The oldest actual fragment of cloths found was
in southern Turkey. People used fibers found nature and hand processes to make fiber into cloth.
Even though high technology was not available, skilled weavers created a wide variety of fibers.
With the growth of cities and nations, improvement in technology came into place and there was
a substantial development in the international trade, both of which involved in textile. The Indian
textile industry was founded nearly five thousand years ago. At that time weaving of cotton had
known as Harrappans. And India began trade with other countries in the second country BC. In
13th century Indian silk was used as barter for species from the western countries. Indian textile
industry had begun export Indian silk and other cotton fabrics in British East India and other
countries in 17th century. In 19th century Indian cotton and silk were hand spun and woven.
These cotton and silk was highly popular fabrics and called Khadi. Indian textile industry is the
second largest in the world.

EXPORT
Indian Exports (Optimistic Scenario)

Yarn

 Garment exports of Bangladesh increase leading to increase in consumption of Indian

fabric and yarn

 Exports of Far-East & ASEAN increase further

 Rationalization in duties of MMF leading to increase in processing of fibers in India

Fabric

 Garmenting deserved leading to entry of large textile players ensuring

 Efficient sourcing and increase in the margins

 Increase in investment for processing

 Improvement in SAPTA trade

Garments

 Garmenting and Knitting de-reserved to allow the units to grow bigger to be able to
service large orders and large clients

 Labor laws in India become industry friendly

 Garment parks come up in key regions giving a boost to exports

 Successful Quota Phase-out without exports getting restricted by QRs

 Fig in US $ Mn

1994 1998 2002 2005* 2010*

Yarn 590 1780 2333 2701 3131

Made-ups 851 1498 2620 4527 11266

Fabric 1214 1716 2512 3530 7100

Garments 3713 4829 6510 10794 21711

Total 6368 9823 14035 21552 43208

Indian Exports (Pessimistic Scenario)

Yarn

• Change works to the advantage for S. Korea/ASEAN/Far-East

• Demand for packages increases

• EEC other garment supply countries invest in back-end processes

Fabric

• Environmental Clause impacts

• Investment in processing does not happen

• Blends and synthetic fabrics dominate reducing advantage of Indian cotton

Garments

• Social clause impact leading to ban on some categories, etc.

• SSA is a reality impacting exports of garments from India to USA and EU

 • FTA becomes a reality

• Other projectionist measures come up

As opposed to the optimistic scenario, the pessimistic scenario shows a shortfall of nearly US
$4000 mn of exports in year 2005 and the exports are not likely to be much higher than the
present figures. It would also lead to development of textile and clothing industry in the other
nations and India would lose out as a significant player in the industry. This would also stifle the
domestic textile industry which would be in a very weak position to compete with imports.
(These are expected to become cheaper with import duty rationalization as per international
treaties and cost competitiveness of overseas players). Some of the subsidies currently extended
by the Indian government to promote exports which are sector specific (TUF, 80 HHC) or region
specific (EPZS, EOUS) may also need to be withdrawn.

Fig in US $ Mn

1994 1998 2002 2005* 2010*

Yarn 590 1780 2003 2126 2022

Made-ups 851 1498 2038 2427 3098

Fabric 1214 1716 1931 2050 2154

Garments 3713 4829 5435 5939 6885

Total 6368 9823 11408 12542 14159

World trade in textile and clothing amounted to US $385 billion in 2003, in which 43%
accounted for textile. Developed countries accounted for little over one third of world exports in
textile. The share of developed countries in textile was estimate 47%. In the United States, the
state of Texas lead in total production as of 2004, while the state of California had the
highest yield per acre.

The five leading exporters of cotton in 2009 are

1. The United States,

2. India,
 3. Uzbekistan,

4. Brazil, and

5. Pakistan.

And the largest non-producing importers are Korea, Russia, Taiwan, Japan, and Hong Kong.

Top ten cotton producers — 2009

(480-pound bales)
People's Republic of China 32.0 million bales
India 23.5 million bales
United States 12.4 million bales
Pakistan 9.8 million bales
Brazil 5.5 million bales
Uzbekistan 4.4 million bales
Australia 1.8 million bales
Turkey 1.7 million bales
Turkmenistan 1.1 million bales
Syria 1.0 million bales

In India, the states of Maharashtra (26.63%), Gujarat (17.96%) and Andhra Pradesh (13.75%)
and also Madhya Pradesh are the leading cotton producing states; these states have a
predominantly tropical wet and dry climate.

Top trading partner of Indian Textile industry –

1. Germany
2. China
3. USA
4. Japan
5. France
6. Italy
7. Netherland
8. U.K
9. Canada
10. South Korea

Textile export areas in last few decades are as follows-

Year Area in lakh hectares Production in lakh bales of 170 kgs Yield kgs per hectare
1950-51 56.48 30.62 92
1960-61 76.78 56.41 124
1970-71 76.05 47.63 106
1980-81 78.24 78.60 170
1990-91 74.39 117.00 267
2000-01 85.76 140.00 278
2001-02 87.30 158.00 308
2002-03 76.67 136.00 302
2003-04 76.30 179.00 399
2004-05 87.86 243.00 470
2005-06 86.77 244.00 478
2006-07 91.44 280.00 521
2007-08 94.39 315.00 567
2008-09 93.73 290.00 526

Strength of textile industry

Strength of textile industry are as follows –

a. Huge textile production capacity

b. Efficient multi-fiber raw material manufacturing capacity

c. Large pool of skilled and cheap workforce

d. Entrepreneurial skills

e. Huge export potential

f. Large domestic market

g. Very low import content

h. Flexible textile manufacturing system

Product

Textile goods have gained prominence among the export products of India; designer garments
for ladies as well as gents manufactured by the big houses in India have created huge demand in
the International garment industry. The popular ladies garment include knitted tops,
embroidered salwar, sequin work blouses, sarongs, floral t-shirts, beaded garments, poplin
embroidered kurta, viscose crape printed skirt. A large number of small scale, medium scale as
well as large scale companies in India are engaged in the export of textile goods, the list of such
companies include:

 Kshethra Exports
 Mirza Fabric Private Limited
 Kanha Designs Pvt. Ltd.
 Knitco Fashions
 Boom Buying Private Limited
 Revolution Exports
 Flying Fashions
 Subasri Textile
 Vipro Garments
 Kewal Impex
 Sudharshanaa Tex
 Macsam

Trend in Export of TEXTILE Product –

In current scenario, the world textile export grown from US $ 272.43 billion in 1994 to US $ 530
billion in 2006. It is observed that the export of textile has exceeded. It may be mentioned that as
compared to textile, export of clothing is more desirable for the point of view of value addition.
During the 1994- 2006, against the two third share of textile in total export of China, India’s
share was only 50%. It significant to note that during the MFA phase out period, India’s share in
the world export of textile declined from 2.663% in1994 to 2.55% in 2004. Whereas the textile
share in the world textile export rose from 2.91% to 3.595 in 2004. In world terms, India ranks as
the second largest producers of textile & clothing after China. In the 2004-2005 fiscal year
India's textile and clothing export edged up by a meager 0.1% to US$ 13,524 mn. In the case of
clothing alone, exports increased by 10.3% to US$ 1,738 mn during April - June 2005. Strong
growth was recorded in the case of wool clothing (up 26.4% to US$ 75 mn) and clothing made
from vegetables fibers other than cotton (up 33.6% to US$ 67 mn).

Future forecast

The Indian textile industry roots thousands of years back. After, the European industry
insurrection, Indian textile sector also witnessed considerable development in industrial aspects.
Textile industry plays an important role in the terms of revenue generation in Indian economy.
The significance of the textile industry is also due to its contribution in the industrial production,
employment. Currently, it is the second largest employment provider after agriculture and
provides employment to more than 30mn people. Considering the continual capital investments
in the textile industry, the Govt. of India may extend the Technology Up gradation Fund Scheme
(TUFS) by the end of the 11th Five Year Plan (till 2011-2012), in order to support the industry.
Indian textile industry is massively investing to meet the targeted output of $85bn by the end of
2010, aiming exports of $50bn. There is huge development foreseen in Indian textile exports
from the $17bn attained in 2005-06 to $50bn by 2009-10. The estimation for the exports in the
current financial year is about $19bn. There is substantial potential in Indian exports of technical
textiles and home-textiles, as most European companies want to set up facilities near-by the
emerging markets, such as China and India.

The global demand for apparel and woven textiles is likely to grow by 25 percent by year 2010
to over 35mn tons, and Asia will be responsible for 85 percent output of this growth. The woven
products output will also rise in Central and Southern American countries, however, at a
reasonable speed. On the other hand, in major developed countries, the output of woven products
will remain stable. Weaving process is conducted to make fabrics for a broad range of clothing
assortment, including shirts, jeans, sportswear, skirts, dresses, protective clothing etc.

Exim Policy

The Foreign Trade Policy of India is guided by the Export Import in known as in short EXIM
Policy of the Indian Government and is regulated by the Foreign Trade Development and
Regulation Act, 1992. DGFT (Directorate General of Foreign Trade) is the main governing
body in matters related to Exim Policy.

Indian EXIM Policy contains various policy related decisions taken by the government in the
sphere of Foreign Trade, i.e., with respect to imports and exports from the country and more
especially export promotion measures, policies and procedures related thereto. Trade Policy is
prepared and announced by the Central Government (Ministry of Commerce). India's Export
Import Policy also known as Foreign Trade Policy.

Exim Policy 2002 – 2009

The Exim Policy 2002 - 2009 deals with both the export and import of merchandise and services.
It is worth mentioning here that the Exim Policy: 1997 - 2002 had accorded a status of exporter
to the business firm exporting services with effect from1.4.1999. Such business firms are known
as Service Providers.

Main Elements of Exim Policy 2002-2009

The new Exim Policy 2004-2009 has the following main elements:

1. Duty Exemption / Remission Schemes of Exim Policy 2002-2009

The Duty Exemption Scheme enables import of inputs required for export production. It includes
the following exemptions-

Duty Drawback: - The Duty Drawback Scheme is administered by the Directorate of

Drawback, Ministry of Finance. Under Duty Drawback scheme, an exporter is entitled to claim
Indian Customs Duty paid on the imported goods and Central Excise Duty paid on indigenous
raw materials or components.

Excise Duty Refund: - Excise Duty is a tax imposed by the Central Government on goods
manufactured in India. Excise duty is collected at source, i.e., before removal of goods from the
factory premises. Export goods are totally exempted from central excise duty.
Octroi Exemption: - Octroi is a duty paid on manufactured goods, when they enter the
municipal limits of a city or a town. However, export goods are exempted from Octroi.

2. Export Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs),

Software Technology Parks(STPs) And Bio-Technology Parks (BTPs) of Exim
Policy 2002-2009

The Export Import Policies relating to Export Oriented Units (EOUs) Electronics Hardware
Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-technology parks
(BTPs) Scheme is given in Chapter 6 of the Foreign Trade Policy. Software Technology Park
(STP)/Electronics Hardware Technology Park (EHTP) complexes can be set up by the Central
Government, State Government, Public or Private Sector Undertakings.

3. Export Promotion Capital Goods Scheme (EPCG) of Exim Policy 2004-2009

Introduced in the EXIM policy of 1992-97, Export Promotion Capital Goods Scheme (EPCG)
enable exporters to import machinery and other capital goods for export production at
concessional or no customs duties at all. This facility is subject to export obligation, i.e., the
exporter is required to guarantee exports of certain minimum value, which is in multiple of total
value of capital goods imported.

4. Special Economic Zone (SEZ) under the Exim Policy 2002-2009

A Special Economic Zone in short SEZ is a geographically distributed area or zones where the
economic laws are more liberal as compared to other parts of the country. SEZs are proposed to
be specially delineated duty free enclaves for the purpose of trade, operations, duty and tariffs.
SEZs are self-contained and integrated having their own infrastructure and support services.
The area under 'SEZ' covers a broad range of zone types, including Export Processing Zones
(EPZ), Free Zones (FZ), Industrial Estates (IE), Free Trade Zones (FTZ), Free Ports, Urban
Enterprise Zones and others.

5. Free Trade & Warehousing Zones of Exim Policy 2002-2009

Free Trade & Warehousing Zones (FTWZ) shall be a special category of Special Economic
Zones with a focus on trading and warehousing. The concept of FTWZ is new and has been
recently introduced in the five-year foreign trade policy 2004-09. Its main objective is to provide
infrastructure for growth of the economy and foreign trade. Free Trade & Warehousing Zones
(FTWZ) plays an important role in achieving global standard warehousing facilities as free trade
zones. Free Trade & Warehousing Zones is a widely accepted model with a history of providing
Substantial encouragement to foreign trade and warehousing activity.

6. Deemed Exports under the Exim Policy 2002-2009

Deemed Export is a special type of transaction in the Indian Exim policy in which the payment
is received before the goods are delivered. The payment can be done in Indian Rupees or in
Foreign Exchange. As the deemed export is also a source of foreign exchange, so the
Government of India has given the benefit duty free import of inputs.

Exim Policy 2009-2014

Main Elements of Exim Policy 2009-2014

1. Higher Support for Market and Product Diversification

 1. 26 new markets have been added under Focus Market Scheme. These include 16 new
markets in Latin America and 10 in Asia-Oceania.

2. The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to
3%.

3. The incentive available under Focus Product Scheme (FPS) has been raised from 1.25%
to 2%.

4. Market Linked Focus Product Scheme (MLFPS) has been greatly expanded by inclusion
of products classified under as many as 153 ITC (HS) Codes at 4 digit level. Some major
products include; Pharmaceuticals, Synthetic textile fabrics, value added rubber products,
value added plastic goods, textile made ups, knitted and crocheted fabrics, glass products,
certain iron and steel products and certain articles of aluminum among others.

5. A common simplified application form has been introduced for taking benefits under
FPS, FMS, MLFPS and VKGUY.

6. Higher allocation for Market Development Assistance (MDA) and Market Access
Initiative (MAI) schemes is being provided.

2. Technological Up gradation

To aid technological up gradation of our export sector, EPCG Scheme at Zero Duty has been
introduced. This Scheme will be available for engineering & electronic products, basic chemicals
& pharmaceuticals, apparels & textiles, plastics, handicrafts, chemicals & allied products and
leather & leather products (subject to exclusions of current beneficiaries under Technological
Upgradation Fund Schemes (TUFS), administered by Ministry of Textiles and beneficiaries of
Status Holder Incentive Scheme in that particular year). The scheme shall be in operation till
31.3.2011.

3. EPCG Scheme Relaxations

 1. To increase the life of existing plant and machinery, export obligation on import of
spares, etc. under EPCG Scheme has been reduced to 50% of the normal specific export
obligation.

2. Taking into account the decline in exports, the facility of Re-fixation of Annual Average
Export Obligation for a particular financial year in which there is decline in exports from
the country, has been extended for the 5 year Policy period 2009-14.

4. Support for Green products and products from North East

Focus Product Scheme benefit extended for export of ‘green products’; and for exports of some
products originating from the North East.

4. Status Holders

1. To accelerate exports and encourage technological up gradation, additional Duty Credit

Scripps shall be given to Status Holders @ 1% of the FOB value of past exports. The
duty credit scrip can be used for procurement of capital goods with Actual User
condition. This facility shall be available for sectors of leather (excluding finished
leather), textiles and jute, handicrafts, engineering, plastics and basic chemicals
(excluding Pharma products). This facility shall be available up to 31.3.2011.

2. Transferability for the Duty Credit scrip being issued to Status Holders under paragraph
3.8.6 of FTP under VKGUY Scheme has been permitted. This is subject to the condition
that transfer would be only to Status Holders and Scripps would be utilized for the
procurement of Cold
Chain equipment(s) only.
 6. Stability/ continuity of the Foreign Trade Policy

1. To impart stability to the Policy regime, Duty Entitlement Passbook (DEPB) Scheme is
extended beyond 31-12-2009 till 31.12.2010.

2. Interest subvention of 2% for pre-shipment credit for 7 specified sectors has been
extended till 31.3.2010 in the Budget 2009-10.

3. Income Tax exemption to 100% EOUs and to STPI units under Section 10B and 10A of
Income Tax Act has been extended for the financial year 2010-11 in the Budget 2009-10.

4. The adjustment assistance scheme initiated in December, 2008 to provide enhanced

ECGC cover at 95%, to the adversely affected sectors, is continued till March, 2010.

7. Thrust to Value Added Manufacturing

1. To encourage Value Added Manufactured export, a minimum 15% value addition on

imported inputs under Advance Authorization Scheme has now been prescribed.

2. Coverage of Project Exports and a large number of manufactured goods under FPS and
MLFPS.

8. DEPB

DEPB rate shall also include factoring of custom duty component on fuel where fuel is allowed
as a consumable in Standard Input-Output Norms.
 9. Flexibility provided to exporters

1. Payment of customs duty for Export Obligation (EO) shortfall under Advance
Authorization / DFIA / EPCG Authorization has been allowed by way of debit of Duty
Credit scrip. Earlier the payment was allowed in cash only.

2. Import of restricted items, as replenishment, shall now be allowed against transferred

DFIAs, in line with the erstwhile DFRC scheme.

3. Transit loss claims received from private approved insurance companies in India will
now be allowed for the purpose of EO fulfillment under Export Promotion schemes. At
present, the facility has been limited to public sector general insurance companies only.

10. Waiver of Incentives Recovery

In cases, where RBI specifically writes off the export proceeds realization, the incentives under
the FTP shall now not be recovered from the exporters subject to certain conditions.

11. Simplification of Procedures

1. To facilitate duty free import of samples by exporters, number of samples/pieces has been
increased from the existing 15 to 50. Customs clearance of such samples shall be based
on declarations given by the importers with regard to the limit of value and quantity of
samples.

2. To allow exemption for up to two stages from payment of excise duty in lieu of refund, in
case of supply to an advance authorization holder (against invalidation letter) by the
domestic intermediate manufacturer. It would allow exemption for supplies made to a
 manufacturer,
if such manufacturer in turn supplies the products to an ultimate exporter. At present,
exemption is allowed up to one stage only.

3. Greater flexibility has been permitted to allow conversion of Shipping Bills from one
Export Promotion scheme to other scheme. Customs shall now permit this conversion
within three months, instead of the present limited period of only one month.

4. To reduce transaction costs, dispatch of imported goods directly from the Port to the site
has been allowed under Advance Authorization scheme for deemed supplies. At present,
the duty free imported goods could be taken only to the manufacturing unit of the
authorization holder or
its supporting manufacturer.

5. Disposal of manufacturing wastes / scrap will now be allowed after payment of

applicable excise duty, even before fulfillment of export obligation under Advance
Authorization and EPCG Scheme.

6. Regional Authorities have now been authorized to issue licenses for import of sports
weapons by ‘renowned shooters’, on the basis of NOC from the Ministry of Sports &
Youth Affairs. Now there will be no need to approach DGFT (Hqrs.) in such cases.

7. The procedure for issue of Free Sale Certificate has been simplified and the validity of
the Certificate has been increased from 1 year to 2 years. This will solve the problems
faced by the medical devices industry.

8. Automobile industry, having their own R&D establishment, would be allowed free
import of reference fuels (petrol and diesel), up to a maximum of 5 KL per annum, which
 are not manufactured in India.

9. Acceding to the demand of trade & industry, the application and redemption forms under
EPCG scheme have been simplified.

12. Reduction of Transaction Costs

1. No fee shall now be charged for grant of incentives under the Schemes in Chapter 3 of
FTP. Further, for all other Authorizations/license applications, maximum applicable fee
is being reduced to Rs. 100,000 from the existing Rs1,50,000 (for manual applications)
and Rs. 50,000 from the existing Rs.75,000 (for EDI applications).

2. To further EDI initiatives, Export Promotion Councils/ Commodity Boards have been
advised to issue RCMC through a web based online system. It is expected that issuance
of RCMC would become EDI enabled before the end of 2009.

3. Electronic Message Exchange between Customs and DGFT in respect of incentive

schemes under Chapter 3 will become operational by 31.12.2009. This will obviate the
need for verification of scrip by Customs facilitating faster clearances.

4. For EDI ports, with effect from December ’09, double verification of shipping bills by
customs for any of the DGFT schemes shall be dispensed with.

5. In cases, where the earlier authorization has been cancelled and a new authorization has
been issued in lieu of the earlier authorization, application fee paid already for the
cancelled authorization will now be adjusted against the application fee for the new
 authorization subject to payment of minimum fee of Rs. 200.

6. An Inter-Ministerial Committee will be formed to redress/ resolve problems/issues of

exporters.

7. An updated compilation of Standard Input Output Norms (SION) and ITC (HS)
Classification of Export and Import Items has been published.

13. Directorate of Trade Remedy Measures

To enable support to Indian industry and exporters, especially the MSMEs, in availing their
rights through trade remedy instruments, a Directorate of Trade Remedy Measures shall be
set up.

IMPORTANT DOCUMANTION

1. PERFORMA INVOICE –

2. Exporter- AAKRTI TEXTILE Ltd

3. Pro. KW. No. & Date Exporter’s Ref.-.
4. Buyer’s Ref. No. & Date- 10/05/10
 5. Consignee
6. Country of Origin of Goods- INDIA
7. Country of Final Destination- USA
8. Terms of Delivery and Payment-
9. Carriage by: SEA OR AIR OR MULTI MODAL TRANSPORT- SEA
10. Place by Receipt by Pre-carrier- DELHI
11. Port of Loading- BOMBAY
12. Port of Discharge Final Destination- ELIZABETH PORT USA
13. Marks & Nos./ Container No.- ASD456A
14. No. & Kind of Pkgs.- 5 CONTAINER
15. Description of Goods – COTTON CLOTH
16. Quantity- 16000 TON.
17. Rate – 200/MTR.
18. Amount- 3,20,000
19. Amount Chargeable (in words) – THREE LAKH TWEENTY THOUSAND
20. Total- 3,20,000
21. Signature & Date –ASHWANI KUMAR 10/05/10
22. Declaration:
23. We declare that this Performa Invoice shows the actual price of the goods described and
that all particulars are true and correct.

INVOICE

Exporter - AAKRTI TEXTILE Ltd

Invoice No. & Date Exporter’s Ref.-TEX456E
Buyer’s Order No. & Date – WER12T 28/4/10
Consignee-
Country of Origin of Goods- INDIA
Country of Final Destination- USA
Terms of Delivery and Payment
Pre-Carriage by Place by Receipt by Pre-carrier
Port of Loading BOMBAY
Port of Discharge ELIZABETH PORT USA
Final Destination- USA
Marks & Nos./-Container No.- ASD456A
No. & Kind of Pkgs.- 5 CONTAINERS
Description of Goods COTTON YARN
Quantity -16000 TON.
Rate-200/MTR
Amount- 320000
Amount Chargeable- 320000
(in words)
Total- 320000
Signature & Date- A. KUMAR 10/05/10
Declaration:
We declare that this Invoice shows the actual price of the goods described and
that all particulars are true and correct.

PACKING LIST

Exporter - AAKRTI TEXTILE Ltd

Invoice No. & Date-- TEX456E 10/05/10
Buyer’s Order No. & Date- WER12T 28/4/10
Consignee
Country of Origin of Goods-INDIA
Country of Final Destination-USA
Pre-Carriage by - AAKRTI TEXTILE Ltd
Place of Receipt by Pre-carrier- DELHI
Port of Loading - BOMBAY
Port of Discharge – ELIZABETH PORT OF USA
Place of Delivery- USA
Marks & Nos./Container No.- ASD456A
No. & Kind of Pkgs. Description of Goods Quantity Remarks- 16000 TON
Signature & Date- A. KUMAR 10/05/10
IIFT
Other Reference(s)
Buyer (if other than consignee)
Vessel/Flight No. SHI56P

BILL OF LADDING

Shipper – ABC LTD.

Consignee (if ‘order’ state Notify Party & Address)
Pre-Carriage by - AAKRTI TEXTILE Ltd
Place of Receipt by Pre-carrier-
Port of Loading - BOMBAY
Port of Discharge USA
Place of Delivery (If On-Carriage)- USA
Marks & Nos./Container No.- ASD456A
No. & Kind of pkgs. 5 CONTAINERS
Containers Seal No. ASDF34H
Description of Goods COTTON CLOTH
Signature & Initials as Agents only- A. KUMAR 10/05/10
Vessel- SHI56P

MATE’S RECEIPTS

Pre-Carriage by - AAKRTI TEXTILE Ltd

Place of Receipt by Pre-carrier-
Port of Loading - BOMBAY
Port of Discharge USA
Place of Delivery (If On-Carriage)- USA
Marks & Nos./Container No.- ASD456A
No. & Kind of pkgs. 5 CONTAINERS
Containers Seal No. ASDF34H
Description of Goods COTTON CLOTH
Signature & Initials - A. KUMAR 10/05/10
Vessel- SHI56P

GSP FORM

1. Goods consigned from (Exporter’s business name, address, country)- AAKRTI TEXTILE Ltd
2. Goods consigned to (Consignee’s name, address, country)- JOAHN MCKENLY, USA
Reference No. – 8990RE
3. Means of transport and route (as far as known)- SEA
GENERALISED SYSTEM OF PREFERENCES
CERTIFICATE OF ORIGIN
(Combined declaration and certification)
FORM A
Issued in ......INDIA....................................................................
(country)
4. For official use
5. Item number 6. Marks and numbers of packages
7. Number and kind of packages; description of goods 8. Origin criterion (See Notes overleaf)
9. Gross weight or other quantity- 16000 TON.
10. Number and date of invoices- TEX456E 10/05/10
11. Certification It is hereby certified, on the basis of control carried out, that the declaration by
the exporter is correct.
.................................................................................................................. Place and date, signature
and stamp of certifying authority
12. Declaration by the exporter
The undersigned hereby declares that the above details and statements are correct; that all the
goods were
produced
in ......................INDIA......................................................................................................................
(country)
and that they comply with the origin requirements specified for those goods in the Generalised
System of Preferences for goods exported to
.....USA..............................................................................................................................................
..............
(importing country)
...........................................................................................................................................................
......
Place and date, signature of authorized signatory -- A. KUMAR 10/05/10

CERTIFICATE OF ORIGIN

Exporter- AAKRTI TEXTILE Ltd

Consignee
Quantity 16000 TON.
Vessel/Flight No.- SHI56P
NAME AND LOGO
OF
CHAMBER OF COMMERCE
Certification
It is hereby certified that the best of our knowledge and belief the above mentioned goods are of
Indian origin.
STAMP
OF
CHAMBER OF COMMERCE

CERTIFICATE OF INSPECTION/IN-PROCESS QUALITY CONTROL

Exporter’s Name and Address Invoice No. & Date

Buyer’s Order No. & Date
Manufacturer’s Name & Address
Marks & Nos./ No. & Kind of Pkgs.
Description of Goods (*)
Quantity
Details of the Manufacturer’s Seal, if any
Details of Seal of Inspection Authority, if any
Specification Reference
FOB Value
(As Declared by Exporter)
Remarks, if any
** Certification Under Inspection System
It is hereby declared that the consignment as per details given above has been inspected as
require under
the ........................................................................................................................................ Act. It
satisfies the conditions as
applicable to it and is certified export worthy.
Date of Inspection ..............................................................
OR
**Certification Under In-Process Quality Control System
It is hereby certified, on the basis of controls carried out that the commodities as per details given
herein are in
accordance with the standard specifications prescribed under
the .......................................................................... Act.
SEAL OF THE
ISSUING AUTHORITY
Signature
Name
Designation
Date

MARINE INSURANCE CERTIFICATE

From
Port of Loading
Port of Discharge
Marks & Nos./
Container No.
No. & Kind of Pkgs.
Containers
Description of Goods
Vessel/Flight No.
Survey: In the event of loss or damage which may involve claim under this certificate, notice of
loss or damage should be give to:
Claim Payable By:
Insured
LOGO
Name and Address of the Subsidiary of the
General Insurance Corporation of India
DUTY STAMP
Certification No. and Date
Open Cover No. and Date
CTD/BL/AWB No. and Date
Insured Value To
TERMS OF INSURANCE
This is to certify that insurance of the above mentioned goods has been effected with this
company as per details specified in the Schedule herein above, subject to the terms and
conditions of the
relative Open Cover.
For The
Authorised Signatory
Important

EXCHANGE CONTROL DECLARATION FORM NO.

Exporter Invoice No. & Date SB No. & Date

AR4/AR4A No. & Date
Q/Cert No. & Date Importer-Exporter Code No.
Consignee
Export Trade Control If export under:
Deferred Credit [ ]
Joint Ventures [ ]
Rupee Credit [ ]
Others [ ]
RBI’s Approval/Cir. No. & Date
Custom House Agent L/C. No.
Pre-Carriage by Place of Receipt Type of shipment:
By Pre-Carrier Outright sale [ ]
Consignment Export [ ]
Vessel/Flight No. Rotation No. Others [ ]
(Specify)
Port of Loading Nature of Contract:CIG [ ]/C&F [ ]/FOB [ ]
Other (Specify) [ ]
Port of Discharge Country of Destination Exchange Rate U/S 14 of CA Currency of invoice
S. NO Marks & No. & Kind of Pkgs. Statistical Code & Description of Goods Quantity Value
FOB
Container Nos.
Net Weight
Gross Weight
Total FOB Value in words
Analysis of Export Value Currency Amount Full export value OR where not ascertainable, the
value which
exporter expects to receive on the sale of goods.
FOB Value
Freight
Insurance Currency
Commission Rate
Discount Amount
Other Deductions
Duplicate

CONCLUSION

Albeit, home textiles will lure higher demand, there are specific demands for home textile
facilities. The 7th Five Year Plan has huge consideration on agricultural growth that also
includes cotton textile industry, resulting a prosperous future forecast for the textile industry in
India. Indian cotton yarn manufacturers should rush forward for joint ventures and integrated
plans for establishing processing and weaving facilities in home textiles and technical textiles in
order to meet export target of $50bn, and a total textile production of $85bn by 2009-2010. And
the market for digital print for textiles is also growing from €114.6m in 2009 to just under €1bn
by 2014. India is now a fast emerging market inching to reach half a billion middle income
population by2030. All these factors are good for the Indian textile industry in the long run. Even
though the global economic crisis seems to be worsening day-by-day, as long as economies are
emerging and growing as those in South and South East Asia, textile industry is here to grow
provided it takes competition and innovation seriously. Indian textile and clothing industry is the
largest foreign exchange earner for the country, and employs over 20 million people, second only
to agriculture. India cannot afford to let this industry grow sick. That would be nothing short of a
human tragedy. Until the era of globalization and liberalization was launched at the opening of
the current decade, the domestic market was a protected turf, and a seller's market. However,
with the forces of globalization having been unleashed, and accentuated by the coming into force
of the WTO in 1995, there is no looking back. The world has changed and is changing. In the
borderless world, only the fittest would survive. Indian textile and clothing industry is beset with
several shortcomings, in no small measure due to the lop-sided govt. policy in the post-1947
India. But now it must change. It must change if it is not be blown away by the global market
forces, both in the international market as well as by imports in the domestic territory. And
contrary to the common refrain of the industrialists in textile industry, the onus of infusing a
refreshing change lies more on the industry than on the government. This is not to belittle the
significant role of a facilitator that govt. alone can provide. But competitive strategy originates at
the level of the firm. No amount of macroeconomic change can make the firms in the industry
competitive. The govt. must evolve a national policy, which can act as a general guideline for the
firms to define their unique positioning strategy. Given the national environment, the firms must
control their own destiny, or someone else will.

BIBLIOGRAPHY

http://www.ibef.org/industry/textiles.aspx
http://www.iloveindia.com/economy-of-india/textile-industry.html

http://handicraft.indiamart.com/history/indiantextiles.html

http://www.economywatch.com/business-and-economy/textile-industry.html

http://www.fibre2fashion.com/industry-article/8/728/textile-industry-in-indian-scenario1.asp

http://www.fibre2fashion.com/industry-article/market-research-industry-reports/indian-textile-
industry/indian-textile-industry1.asp

http://us.asiancorrespondent.com/Indianomics/2009/08/07/top-10-trading-partners-of-india

http://business.mapsofindia.com/sectors/exports/major-products.html

http://texprocil.com/trend_in_value_groupwise_madesup.htm

http://www.india-crafts.com/business-reports/indian-textile-industry/

http://www.1888articles.com/bright-future-for-indian-textile-industry-06v9g56rh7.html

http://www.fibre2fashion.com/industry-article/17/1633/growth-road-for-the-indian-textile-
industry1.asp

http://www.fibre2fashion.com/industry-article/21/2099/outlook-2009-q4-and-forecast-on-indian-
textile-sector1.asp

http://www.fabrics-manufacturers.com/custom-duty-table.html

http://business.rediff.com/report/2010/feb/17/budget-2010-sector-textiles-slash-excise-duty-on-
mmf.htm