Opportunities for Product Diversification

Feb, 2020

Product Diversification – Potential Products

2

-The products identified are the

products falling in World Top

product exports

- India’s share in 8 products is

less than 2%

- RCA in 8 products is less than 1,

it means we are disadvantageous

in these products. We have to

increase the competitiveness in

these products

- 8 products have higher UVR

than average UVR of India i.e.

USD 4.1

- If we were able to capture the

5% market of these 10 products,

we can do to additional exports of

USD 7 bn.

*Revealed Comparative Advantage (RCA)

- The RCA indicates whether a country is in theprocess of extending the products in which ithas a trade potential, as opposed to situationsin which the number of products that can becompetitively exported is static. A value of lessthan unity implies that the country has arevealed comparative disadvantage in theproduct. Similarly, if the index exceeds unity,the country is said to have a revealedcomparative advantage in the product.

Potential Products Diversification

S. No.Product

codeProduct label

World Exports(IN USD

MN.)

India's Exports(IN USD

MN.)

India's Share(IN %)

India's RCA

India's Unit Value(IN USD)

Strategy

1 620342Men's or boys' trousers, bib and brace overalls,

breeches and shorts, of cotton (excluding ...26934.8 443.4 1.6 0.99 7.6

- Marketing in International Market- Forecasting seminars

2 611030Jerseys, pullovers, cardigans, waistcoats and similar

articles, of man-made fibres, knitted ...25528.6 71.4 0.3 0.17 8.7

- Availability of Fabric- Training in development of this product

- Higher subsidy for technology in these products- Nees to seek FDI

3 620462Women's or girls' trousers, bib and brace overalls,

breeches and shorts of cotton (excluding ...22647.2 200.3 0.9 0.53 5.6

- Marketing in International Market- Forecasting seminars

4 611020Jerseys, pullovers, cardigans, waistcoats and similar

articles, of cotton, knitted or crocheted ...22570.0 171.6 0.8 0.44 5.6

- Availability of Fabric- Training in development of this product

- Higher subsidy for technology in these products- Nees to seek FDI

5 621210Brassieres of all types of textile materials, whether or

not elasticated, incl. knitted or ...11038.8 107.2 1.0 0.57 3.5

- Availability of Fabric- Training in development of this product

- Higher subsidy for technology in these products- Nees to seek FDI

6 620343Men's or boys' trousers, bib and brace overalls,

breeches and shorts of synthetic fibres (excluding ...7832.4 89.1 1.1 0.68 5.9

- Availability of Fabric- Training in development of this product

7 610462Women's or girls' trousers, bib and brace overalls,

breeches and shorts of cotton, knitted ...7499.2 108.6 1.4 0.87 2.1

- Availability of Fabric- Training in development of this product

8 620463Women's or girls' trousers, bib and brace overalls,

breeches and shorts of synthetic fibres ...6757.5 131.5 1.9 1.18 4.9

- Availability of Fabric- Training in development of this product

9 611130Babies' garments and clothing accessories of synthetic

fibres, knitted or crocheted (excluding ...1049.2 67.6 6.4 4.00 28.7

- Marketing in International Market- Forecasting seminars

10 611490Special garments for professional, sporting or other

purposes, n.e.s., of textile materials, ...1863.7 235.2 12.6 7.7 25.3

- Availability of Fabric- Training in development of this product

- Higher subsidy for technology in these products

3

Product Diversification – 610831 - Women's or girls' nightdresses and pyjamas of cotton, knitted or crocheted

World’ Top 5 importer contributes to 50.5% of Total market

India’s share in its Top export destination is 60.5%

India’s share is 13.8% in world exports India’s exports has increased by 9.2%

Product Description

World's Exports

, IN USD Mn.%

Change

India's Exports ,

IN USD Mn. % Change

India's

share

2017 2018 2017 2018 2017 2018

610831

Women's or girls' nightdresses

and pyjamas of cotton, knitted or

crocheted

1716.7 1903.3 10.9 241.6 264.0 9.2 14.1 13.9

Source: UN Comtrade, 2020

S. No.

World Top 5 importers India's Top 5 Destination

Country

Imported value in

2018

In USD Mn.

% share in

world importsCountry

Exported value

in 2018

In USD Mn.

% share in

India’s exports

World 1903.3 100.0 World 264.0 100.0

Top 5 888.5 50.5 Top 5 159.6 60.5

1United States of

America402.3 22.9 United Kingdom 64.6 24.5

2 Germany 145.6 8.3 Italy 30.1 11.4

3 United Kingdom 141.8 8.1 Germany 23.7 9.0

4 Italy 100.5 5.7United States of

America21.7 8.2

5 France 98.3 5.6 Spain 19.4 7.4

Source: UN Comtrade, 2020

4

Top Suppliers of 610831 - Women's or girls' nightdresses and pyjamas of cotton, knitted or crocheted

China is the leader in this product with 26.5% of share

India’s Revealed Comparative Advantage (RCA) is more than unity, showing that India is advantageous in this product

India’s RCA is greater than China

Suppliers of 610831

Exporters2018,

In USD Mn.Share in % RCA

World 1903.3 100 ---

China 504.5 26.5 2

Bangladesh 295.0 15.5 66

India 264.0 13.9 8

Turkey 96.3 5.1 6

Cambodia 82.0 4.3 40

Viet Nam 62.8 3.3 3

Source: UN Comtrade, 2020

5

Export Potential in 610831 - Women's or girls' nightdresses and pyjamas of cotton, knitted or crocheted

6

Product Diversification – 620342: Men's or boys' trousers and shorts of cotton

Product DescriptionWorld's Exports ,

IN USD Mn.%

Change

India's Exports ,

IN USD Mn.% Change

India's share

2017 2018 2017 2018 2017 2018

620342Men's or boys' trousers, bib and brace overalls, breeches

and shorts, of cotton23885.6 24829.8 4.0 428.6 443.4 3.5 1.8 1.8

Source: UN Comtrade, 2020

World Top 5 importers India's Top 5 Destination

S. No. Importers 2018 % share Importers 2018 % share

World 24829.8 100.0 World 443.4 100.0

Top 5 12335.8 49.7 Top 5 256.0 57.7

1United States of America

5412.2 21.8United States of America

118.4 26.7

2 Germany 3101.6 12.5 Netherlands 38.2 8.6

3 France 1425.2 5.7 Spain 36.9 8.3

4 Spain 1321.5 5.3United Arab Emirates

33.0 7.5

5 Netherlands 1075.2 4.3United Kingdom

29.4 6.6

Source: UN Comtrade, 2020

World’ Top 5 importer contributes to 49.7% of Total market

India’s Top 5 market & world Top 5 market do not match

India’s share in only 1.8% in world exports India’s exports has increased by 3.5%

7

Product Diversification – 620342: Men's or boys' trousers and shorts of cotton

Exporters 2018 Share in % RCAUnit Value

In USD

World 26934.8 100.0 --- ---

Bangladesh 5825.8 21.6 92.8 14.2

China 4955.7 18.4 24.6 15.8

Turkey 980.0 3.6 4.2 9.4

Viet Nam 729.0 2.7 1.8 16.3

Cambodia 540.8 2.0 19.2 NA

India 443.4 1.60.99

7.3

Bangladesh is the leader in this product with 21.6% of share

India’s is disadvantageous RCA in this product

Despite being the lowest UVR our share is low. Other factors may be impacting our growth in this product like longer lead period, quality of the product, non-availability of the fabric etc

Possible Strategy Developed markets Germany, France & Italy may aggressively targeted

Markets like Japan, Switzerland, Poland, Belgium, Canada, Australia, Korea may be explored Marketing in International Market

Forecasting seminars We have lower UVR in this product, reasons for order not coming to India may be explored

8

Top 10 Products of South Korea

India’s share in Korea’s Top 10 Product import is lower than India’s Totals share of 0.79%

Korea's Top 10 RMG Import vs India's share

S. No.

Product

codeProduct label

Korea,

Republic of's

imports from

world,

In USD Mn.

Korea, Republic

of's imports

from India,

In USD Mn.

India's

Share in %

RMG 10399.1 82.7 0.79

Top 10 4507.5 25.2 0.56

1 620193 Men's or boys' anoraks, windcheaters, wind jackets and similar articles, of man-made fibres ... 779.4 0.4 0.05

2 620293Women's or girls' anoraks, windcheaters, wind jackets and similar articles, of man-made fibres

...691.0 0.1 0.02

3 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 550.2 13.3 2.42

4 611030 Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres, knitted ... 426.4 0.3 0.08

5 620343Men's or boys' trousers, bib and brace overalls, breeches and shorts of synthetic fibres

(excluding ...419.7 1.1 0.27

6 610990 T-shirts, singlets and other vests of textile materials, knitted or crocheted (excluding cotton) 385.7 0.2 0.06

7 611020 Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, knitted or crocheted ... 378.1 5.4 1.43

8 620462 Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton (excluding ... 321.9 1.4 0.44

9 620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton (excluding ... 291.2 2.7 0.93

10 620463 Women's or girls' trousers, bib and brace overalls, breeches and shorts of synthetic fibres ... 263.9 0.2 0.07

Source: UN Comtrade, 2020

9

Export Potential in South Korea

Export Potential of Apparel Export from India to South Korea is USD 330 mn.

10

Bangladesh's Top 10 RMG Products vis-à-vis India's Exports

Bangladesh's Top 10 RMG Products vis-à-vis India's Exports

S. No. Product code

Product label

Bangladesh's

exports to world

% Share in

Bangladesh

Exports

India's

exports to

world

% Share in

India's Exports

2018 2018

RMG 38981.5 100.0 15687.1 100.0

Top 10 26327.3 67.5 5286.3 33.7

1 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 5834.2 15.0 1786.0 11.4

2 620342Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton

(excluding ...5825.8 14.9 443.4 2.8

3 620462Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton

(excluding ...3530.5 9.1 200.3 1.3

4 611020Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, knitted or

crocheted ...2681.8 6.9 171.6 1.1

5 611030Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres,

knitted ...2530.6 6.5 71.4 0.5

6 620520Men's or boys' shirts of cotton (excluding knitted or crocheted, nightshirts, singlets

and ...1968.7 5.1 789.3 5.0

7 610462Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton,

knitted ...1179.3 3.0 108.6 0.7

8 610510Men's or boys' shirts of cotton, knitted or crocheted (excluding nightshirts, T-shirts,

singlets ...1020.8 2.6 398.4 2.5

9 611120Babies' garments and clothing accessories of cotton, knitted or crocheted (excluding

hats)882.6 2.3 644.9 4.1

10 610990T-shirts, singlets and other vests of textile materials, knitted or crocheted (excluding

cotton)873.1 2.2 672.4 4.3

Source: UN Comtrade, 2020

11

Vietnam's Top 10 RMG Products vis-à-vis India's Exports

Vietnam's Top 10 RMG Products vis-à-vis India's Exports

S.

No.

Product

code

Product label

Vietnam's exports

to world

% Share in

Vietnam

Exports

India's

exports to

world

% Share in

India's

Exports2018 2018

RMG 28183.3 100.0 15687.1 100.0

Top 10 11857.0 42.1 3736.5 23.8

1 611020 Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, knitted or crocheted ... 1551.9 5.5 171.6 1.1

2 611030 Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres, knitted ... 1506.5 5.3 71.4 0.5

3 620193 Men's or boys' anoraks, windcheaters, wind jackets and similar articles, of man-made fibres ... 1438.3 5.1 5.3 0.0

4 620343Men's or boys' trousers, bib and brace overalls, breeches and shorts of synthetic fibres

(excluding ...1308.9 4.6 89.1 0.6

5 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 1246.4 4.4 1786.0 11.4

6 610990 T-shirts, singlets and other vests of textile materials, knitted or crocheted (excluding cotton) 1191.2 4.2 672.4 4.3

7 620293Women's or girls' anoraks, windcheaters, wind jackets and similar articles, of man-made fibres

...1037.9 3.7 1.9 0.0

8 610463 Women's or girls' trousers, bib and brace overalls, breeches and shorts of synthetic fibres, ... 946.5 3.4 18.0 0.1

9 620463 Women's or girls' trousers, bib and brace overalls, breeches and shorts of synthetic fibres ... 897.7 3.2 131.5 0.8

10 620520 Men's or boys' shirts of cotton (excluding knitted or crocheted, nightshirts, singlets and ... 731.5 2.6 789.3 5.0

Source: UN Comtrade, 2020

12

Cambodia's Top 10 RMG Products vis-à-vis India's Exports

Cambodia's Top 10 RMG Products vis-à-vis India's Exports

S. No.Product

code

Product label

Cambodia's

exports to world% Share in

Cambodia

Exports

India's

exports to

world

% Share in

India's

Exports2018 2018

RMG 12879.8 100.0 15687.1 100.0

Top 10 6813.6 52.9 4239.8 27.0

1 611030Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres, knitted

...1153.6 9.0 71.4 0.5

2 611020Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, knitted or

crocheted ...1039.3 8.1 171.6 1.1

3 620462Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton

(excluding ...906.3 7.0 200.3 1.3

4 610990 T-shirts, singlets and other vests of textile materials, knitted or crocheted (excluding cotton) 679.5 5.3 672.4 4.3

5 610463Women's or girls' trousers, bib and brace overalls, breeches and shorts of synthetic fibres,

...587.2 4.6 18.0 0.1

6 610462 Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton, knitted ... 566.5 4.4 108.6 0.7

7 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 563.8 4.4 1786.0 11.4

8 620342Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton (excluding

...540.8 4.2 443.4 2.8

9 611120 Babies' garments and clothing accessories of cotton, knitted or crocheted (excluding hats) 435.0 3.4 644.9 4.1

10 610342 Men's or boys' trousers, bib and brace overalls, breeches and shorts of cotton, knitted or ... 341.6 2.7 123.1 0.8

Source: UN Comtrade, 2020