Trend analysis of Garment trade from India to EU and U.S.

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CHANDAN KUMAR ANKITA SINGH PRIYANKA SINGH SANJAY KUMAR VISHWAJEET BHARTI SAVITA GUPTA

Trend Analysis
o o o o o o o o o o o o ContentInternational Trade. International Trade Regulation. Global Value Chain. Apparel as buyer driven value chain. Indian role in fashion market Indian export/import and economy. India in US/EU market. Graphical review Export pie chart Opportunities and challenges Bibliography Thank you

International trade
International Trade. Exchange of capitals &services across border o Importance o Represent significant share of GDP o Globalization o Indian international trading
o Total market size $ 57.6 billion o Expected $110 billion by 2012

International trade regulation

o Bilateral to Multilateral treaty resulted to free trade.

o Regulation through world trade organization.

Global value chain

o International economy-1)Producer driven. 2)Buyer driven. o Producer driven-Automobile , aircraft, computer. o Buyer driven - Wal-mart ,J C PENNY.

Apparel as buyer driven value chain

o Four main parts1)Raw material supply. Natural , Man-made faber etc 2)Production network made up of garmentfactories : Domestic-factories Overseas factories 3)Export channels:-established by Intermedieries 4)Marketing network: All retail level

Indian role in fashion market

o India in trading. o In 2006, Total market size $ 57.6 billion o Expected $110 billion by 2012 o As a default source of embroidered garment segment. Garments. Silk,cotton, wool etc..

Indian export/import and economy

o The vision statement for textile industry for 11th five year plan (2007 12). o Improving scheme like o 1)Technology up gradation scheme (TUFS) o 2) Technology mission scheme for cotton(TSM) o Handloom and handicraft are exported more than 100 countries . o U.S.A and E.U import around 2/3 of total Indian export

Performance
o India-to-USA
o o o o USA is one of the largest importer of indian textile India is the 6th largest exporter to USA India export $ 1293.23 million { jan -2011} Import growth rate is 12.65 % to USA

India-to-E.U Market o EU is also the largest importer of india o INDIAS import growth rate is 25.70 % o EUs export growth rate is 21%
o (source www.texmin.com)

GRAPHICAL REVIEW

EXPORT PIE CHART(2009-10)

OPPORTUNITIES OF INDAIN TEXTILE INDUSTRIES

1) Abundant availability of raw material.

2) low cost. 3) Manufacturing flexibility. 4) Favorable demand conditions. 5) Strong presence of related and supporting industries 6) favorable policy initiatives.

CHALLENGES OF INDIAN TEXTILE INDUSTRY

1) Fragment structure with the dominance of the small scale sector. 2) High power costs. 3) Rising interest rates and transaction cost. 4) Unfriendly labour laws 5) Foreign investments are not coming in as the overall factors influencing the industry are not investment friendly.

Bibliography
http://unpan1.un.org/intradoc/groups/public/document s/apcity/unpan024036.pdf http://www.docstoc.com/docs/15615135/Export-ofSpecies-from-India-to-UK http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1 350684 http://www.slideshare.net/sandheyr/indoustrade-relations http://www.companiesandmarkets.com/marketresearch-reports-industry-statisticsp9.aspx?gclid=CNmQvZi-76oCFcEa6wodfidyPQ

THANK YOU