This project is based on international Trade finance in Welspun International.
The Indian Textile Industry is one of the largest segments of Indian economy accounting for over 20% of the industrial production as well as providing employment to around 65 million persons. It enjoys the distinction of being the highest foreign exchange earner for the country, accounting for nearly one third of the country’s total exports. Therefore, the sector shoulders a major responsibility in enhancing the foreign exchange reserves.
Despite strong domestic demand-pull, textile exports have witnessed steady growth over the years. The share of India's textile exports in the world has grown from 1.8% in the beginning of 80's to around 3% at present. The advantages arising from a strong raw material base, a well established yarn and fabric industry and relatively low labor cost has led to quick growth in textile exports, from an insignificant base of less than US $3 million in the beginning of 70's to nearly US $ 12-13 billion.
However, with the lowering of tariff barriers, removal of quantitative restrictions and the phase out of MFA regime, the textile industry is poised to enter an era of fierce competition, not only in exports but in the domestic market as well. All these developments are bound to have some effects on Indian textile trade and industry. To meet the emerging competition, the Government is continuously providing an enabling environment for the industry to be globally competitive.
Realizing the vast export and employment potential of textile and clothing industry on one hand and the challenges it faces, a cohesive set of policy initiatives are being taken. The new Textile Policy 2000 (NTxP-2000) has been announced to provide the policy direction for orderly and sustained development and growth of the textile industry. One of the main aims of the policy is to achieve an enhanced target of textiles and apparel exports from the present level of US $ 11.2 billion to US $ 50 billion by 2010.
The world scenario in the textiles and clothing trade is fast changing with the imminent abolition of quota restrictions and emergence of trade blocks. Removal of restraints would provide unrestricted access, but they would also result in unrestricted competition in the world market. The industry in India needs to prepare itself for facing the challenges and exploiting the opportunities that a quota free market would provide.
While, the industry can legitimately demand proper policy inputs from the Government, the initiative for modernization and innovation for improving competitiveness has to come essentially from the industry. The natural advantages in the form of abundant cotton availability and low labor costs need to be skillfully combined with technology up gradation and quality improvement to sharpen the competitive edge resulting in a quantum jump in the global share of textile exports from India in the post quota regime.
The textile industry is the single largest foreign exchange earner for India. Currently it accounts for about 8 % of GDP, 20 % of the industrial production and over 30 % of export earnings of India and it has only 2-3 % import intensity. About 38 million people are gainfully employed with the industry making it the second largest employment providing sector after agriculture.
The Indian Textile Industry is one of the largest segments of Indian economy accounting for over 20% of the industrial production as well as providing employment to around 65 million persons. It enjoys the distinction of being the highest foreign exchange earner for the country, accounting for nearly one third of the country’s total exports. Therefore, the sector shoulders a major responsibility in enhancing the foreign exchange reserves.
Despite strong domestic demand-pull, textile exports have witnessed steady growth over the years. The share of India's textile exports in the world has grown from 1.8% in the beginning of 80's to around 3% at present. The advantages arising from a strong raw material base, a well established yarn and fabric industry and relatively low labor cost has led to quick growth in textile exports, from an insignificant base of less than US $3 million in the beginning of 70's to nearly US $ 12-13 billion.
However, with the lowering of tariff barriers, removal of quantitative restrictions and the phase out of MFA regime, the textile industry is poised to enter an era of fierce competition, not only in exports but in the domestic market as well. All these developments are bound to have some effects on Indian textile trade and industry. To meet the emerging competition, the Government is continuously providing an enabling environment for the industry to be globally competitive.
Realizing the vast export and employment potential of textile and clothing industry on one hand and the challenges it faces, a cohesive set of policy initiatives are being taken. The new Textile Policy 2000 (NTxP-2000) has been announced to provide the policy direction for orderly and sustained development and growth of the textile industry. One of the main aims of the policy is to achieve an enhanced target of textiles and apparel exports from the present level of US $ 11.2 billion to US $ 50 billion by 2010.
The world scenario in the textiles and clothing trade is fast changing with the imminent abolition of quota restrictions and emergence of trade blocks. Removal of restraints would provide unrestricted access, but they would also result in unrestricted competition in the world market. The industry in India needs to prepare itself for facing the challenges and exploiting the opportunities that a quota free market would provide.
While, the industry can legitimately demand proper policy inputs from the Government, the initiative for modernization and innovation for improving competitiveness has to come essentially from the industry. The natural advantages in the form of abundant cotton availability and low labor costs need to be skillfully combined with technology up gradation and quality improvement to sharpen the competitive edge resulting in a quantum jump in the global share of textile exports from India in the post quota regime.
The textile industry is the single largest foreign exchange earner for India. Currently it accounts for about 8 % of GDP, 20 % of the industrial production and over 30 % of export earnings of India and it has only 2-3 % import intensity. About 38 million people are gainfully employed with the industry making it the second largest employment providing sector after agriculture.
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