ABSTRACT

In a recent paper. John WHALLEY of the university of westen Ontario has

assessed the impact of the end of the MFA. he has used data from

US ,EU,Chinese and other sources.

India seems to have done quite well.the impact on both asian and non asian

suppliers to the EU differs from that of US case.only for India is there an

increase in the market share. In all other cases shares either fall o hold

steady.

The picture that emerges is only small impacts on aggregate Chinese exports

of clothing and textiles.

Objective:

The project aims at studying the textile industry of India in general and

textile export from India post MF regime in particular. The project studies

the various aspects of WTO agreement and its implications on the textile

export .it also studies how the termination of Multi Fibre agreement

benefited India and its competitiveness vis a vis other global players like

China, Korea and Vietnam. It also highlights various aspects pertaining to

Indian textile industry like its comparative advantage in textiles and

garments with respect to other countries, which emanates from the low wage

costs and access to domestically produced fabrics and other inputs.

Profile of the Indian Textile Industry

The Indian Textile industry occupies an important place in

the economy of the country because of its contribution to

the industrial output, employment generation and

foreign exchange earnings.

At present, the contribution of the textile industry to GDP

is about 4 percent. The textile industry provides direct

employment to about more than 35 million people and is

the second largest employment provider in India after

agriculture.

Of this, textile industry alone accounts for 29 million and

the apparel industry accounts for balance 6 million

people.

Sector Units Volume (2004-05) Employment

(Million)

Organized

Textile Mills

1789 1.5 bn sq.mts 1.0

Powerloom 0.4 million 28.3 bn sq.mtr 4.8

Handloom 3.5 million 5.7 bn sq.mtr 6.5

Jute - 1.6 mn tonnes 4.4

Handicrafts - - 6.4

Sericulture - - 6.0

Source: Ministry of Textiles

With exports as well as domestic sector growing rapidly the

Textile and Apparel Industry is expected to provide direct

employment to 40 million people by year 2010.

Size of the Indian Textile and Apparel Industry is

estimated to be US $ 85 bn comprising US $ 45 bn in

domestic and balance in exports by 2010.

The contribution of this industry to gross export

earnings is about 17% and it adds less than 2 % to the

gross import bill of the country in 2004-05.

The textile industry is a self -reliant industry from the

production of raw materials to the delivery of final

products with considerable value addition at each stage

of processing.

The industry was delicensed in 1991 and under the

current policy no prior government approval is

necessary to set up textile mills. The per capita cloth

availability in the country has increased from 22.87

square meters in 1991-92 to 33.51 square meters in

2004-05.

PER CAPITA AVAILABILITY   OF CLOTH

  (In Sq. Mts.)

YEAR COTTON

BLENDED/

MIXED

FABRICS

100% NON-

COTTON

FABRICS

TOTAL

1991-92 13.71 2.90 6.26 22.87

1992-93 15.57 2.57 6.36 24.50

1993-94 15.92 3.58 6.72 26.22

1994-95 15.24 3.27 7.47 25.98

1995-96 16.32 3.48 8.19 27.99

1996-97 16.24 3.98 9.08 29.30

1997-98 15.94 4.57 10.41 30.92

1998-99 13.07 4.13 10.99 28.19

1999-00 14.16 4.48 11.91 30.55

2000-01 14.22 4.50 11.96 30.68

2001-02 14.82 4.69 12.46 31.97

2002-03  14.40 4.38 12.59 31.37

2003-04  13.41 4.51 13.09 31.01

2004-05  14.08 4.11 15.32 33.51

By O/o  the Textile Commissioner

 

India’s position in the World Textile EconomyIndia’s position in the World Textile Economy

•Third largest producer of raw cotton •Third largest producer of raw cotton

•Second largest producer of cellulosic fibre / yarn.•Second largest producer of cellulosic fibre / yarn.

•Second largest producer of cotton yarn.•Second largest producer of cotton yarn.

•Largest producer of jute.•Largest producer of jute.

•Second largest producer of silk.•Second largest producer of silk.

•Fifth largest producer of synthetic fibre / yarn.•Fifth largest producer of synthetic fibre / yarn.

Importance of Textile Industry to IndiaImportance of Textile Industry to India

Economic IndicatorsEconomic Indicators

GDP

* GDP: 4 %

* Exports 17 %

* Invested Capital 12 %

* Gross Output 13 %

* No. of Factories 13 %

* Employment

21 %

(2nd largest employment provider)

Indian textile trade:

3.17% of world market ( 2003)

CAGR of 5.91% (94-2004)

3rd rank in EU & 4th rank USA

From USD 13.5 bn in 2004 to USD 40 bn in 2010 over a period of 7

years @ CAGR of 19.85%

%Vision India 2010 for TextilesVision India 2010 for Textiles

Textile economy to grow to Textile economy to grow to $ 85 bn. $ 85 bn. by 2010.by 2010.

Creation of Creation of 12 million new jobs12 million new jobs in Textile Sector. in Textile Sector.

To increase India’s share in world trade to To increase India’s share in world trade to 6%6% by 2010. by 2010.

Achieve export value of Achieve export value of $ 40 Billion $ 40 Billion by 2010.by 2010.

Modernisation and consolidation for creating a globally competitiveModernisation and consolidation for creating a globally competitive

industry.industry.PROJECTED SCENARIO – 2010PROJECTED SCENARIO – 2010

Textile & Apparel Market USD 85 billionTextile & Apparel Market USD 85 billion

-- Export USD 40 billion and Domestic USD 45 billionExport USD 40 billion and Domestic USD 45 billion

Post-Quota regime Indian Textile Industry is poised for a quantum

leap and leverage its competitive advantage.

Investment climate in Textile Industry has drastically improved.

Entrepreneurs and existing players are expanding capacities and

adopting strategies addressed to growing consuming class.

Industry is striving hard to improve quality, productivity & efficiency,

and introducing global benchmark with the support of modern

technology & IT solutions.

Indian economy’s growth at 7-8% & focus on development of

infrastructure augurs well for the growth of industry.

Pragmatic approach by the Government in supporting the textile

industry and close cooperation

Bilateral & multilateral trade agreements will facilitate better

trade.Textile Trend :Textile Trend :Textiles account for 14 per cent of India's

industrial production and around 17 per cent of its export earnings.

From growing its own raw material (cotton, jute, silk and wool) to

providing value added products to consumers (fabrics and garments),

the textile industry covers a wide range of economic activities,

including employment generation in both organised and unorganised

sectors.

Manmade fibres account for around 40 per cent share in a cotton-

dominated Indian textile industry. India accounts for 15% of world's total

cotton crop production and records second largest producer of silk.

It is the second largest employer after the agriculture sector in both

rural and urban areas. India has a large pool of skilled low-cost textile

workers, experienced in technology skills.

Almost all sectors of the textile industry have shown significant

achievement.

India's cotton textile industry has a high export potential. Cost

competitiveness is driving the penetration of Indian basic yarns and grey

fabrics in international commodity markets. Small and flexible batches of

apparels can be manufactured in India and can provide a larger variety of

casual wear and leisure garments at significantly lower costs.

Besides natural fibres such as cotton, jute and silk, synthetic raw

material products such as polyester staple fibre, polyester filament yarn,

acrylic fibre and viscose fibre are produced in India.

Textile Exports at a Glance (Provisional)

TEXTILE EXPORTS AT A GLANCE

 

APRIL /

DECEMBER  

ITEM 2004-05 2005-06  

  Mn.US $ Mn.US $

%

Growth

Ready Made Garment 4393.97 5889.11 34.03

Rmg Cotton Including Accessories 3288.73 4392.18 33.55

Rmg Silk 127.78 176.53 38.15

Rmg Manmade Fibres 533.47 742.10 39.11

Rmg Wool 276.98 296.32 6.98

Rmg Of Other Textile Material 167.01 281.99 68.85

Cotton Textiles 2509.88 3077.68 22.62

Cotton Raw Incl. Waste 56.81 292.82 415.44

Cotton Yarn, Fabrics, Madeups

Etc.

2453.07 2784.86 13.53

Man-made textiles 1464.42 1450.36 -0.96

Manmade Staple Fibre 45.26 62.05 37.09

Manmade Yarn, Fabrics,

Madeups

1419.16 1388.31 -2.17

Wool & Woollen Textiles 50.31 62.49 24.21

Wollen Yarn, Fabrics, Madeups

Etc.

50.31 62.49 24.21

Silk 294.17 319.78 8.71

Natural Silk Yarn, Fabrics,

Madeup

293.94 316.78 7.77

Silk Waste 0.23 3.00 1203.48

TOTAL TEXTILES 8712.75 10799.42 23.95

Handicrafts 738.71 910.69 23.28

HANDICRAFTS (EXCL.

HANDMADE CRFTS)

285.02 314.21 10.24

Carpet (Excl. Silk) Handmade 436.45 579.87 32.86

Carpet (Excl. Silk) Millmade 0.00 0.00 0.00

Silk Carpet 17.24 16.61 -3.65

COIR & COIR

MANUFACTURERS

75.26 99.71 32.49

COIR & COIR

MANUFACTURERS

75.26 99.71 32.49

Jute 198.35 223.37 12.62

Floor Covering Of Jute 35.50 47.54 33.92

Other Jute Manufactures 39.09 43.21 10.53

Jute Yarn 52.17 40.53 -22.32

Jute Hessian 71.59 92.10 28.65

TOTAL TEXTILE EXPORTS 9725.07 12033.20 23.73

Source : Foreign Trade Statistics of India (Principal

Commodities & Countries) DGCIS, Calcutta

Exports of Textiles

At present, (2004-05) the exports of textiles (including

handicrafts, jute, and coir) account for about 17% of total

exports from India and are the largest net foreign exchange

earner for the country as the import content in textile goods

is very little as compared to our other major export products.

Further, the export basket consists of wide range of items

containing cotton yarn and fabrics, man-made yarn and

fabrics, wool and silk fabrics, made-ups and variety of

garments.

Sector-Wise Analysis

Readymade Garments

Readymade garments account for approximately 49% of the

country's total textile exports. They represent value added

and less import intensive sub sector, thus deserving a

special place.

Readymade garment exports recorded a growth of 34.03%

in 2005-06 (april-december) as compared to the previous

year 2004-05. During the period April-December 2005-2006,

Readymade Garment exports were US$ 5889.11 million,

recording a growth of 34.03% as compared to the

corresponding period of 2004-2005. The major importing

countries/regions of our readymade garments are the E.U.,

the U.S.A., Canada, Japan, U.A.E. and Switzerland.

Cotton Textiles including Handlooms

Cotton textiles i.e. yarn, fabrics and made-ups (Millmade /

Powerloom/ Handloom) constitute more than 1/4th of our

exports of all fibres/yarns/made-ups. Cotton textiles exports

have recorded a growth of 22.62% (including raw cotton) in

2005-06 as compared to the previous year 2004-05. During

the period April-December 2005-2006, cotton textiles

exports including handlooms/raw cotton were US$ 3077.68

million, recording a growth of 22.62% as compared to the

corresponding period of 2004-2005.

Man-Made textiles

The Man-Made textile exports had recorded a decline of

0.96% in 2005-06 as compared to the previous year during

the period April-December 2005-2006, Man-Made Textiles

exports were US$ 1450.36 million, recording a decline of

0.96% as compared to the corresponding period of 2004-

2005.

Woolen Textiles

During the period April-December 2005-2006, woolen

textiles exports were US$ 62.49 million, recording a growth

of 24.21% as compared to the corresponding period of 2004-

2005.

Handicrafts including Carpets

Handicrafts are one of the sub-sectors which contribute

substantially to the overall textile exports. In dollar terms,

the sector exhibited an annual export growth of 23.28% in

2005-06 as compared to the previous year. During the

period April-December 2005-2006 handicrafts including

carpet exports were US$ 910.69 million, showing a growth of

23.28% as compared to the corresponding period of 2004-

2005.

Coir

The Coir exports had recorded a growth of 32.49% in 2005-

06 as compared to the previous year During the period April-

December 2005-2006, coir exports were US$ 99.71 million,

recording a growth of 32.49% as compared to the

corresponding period of 2004-2005.

Jute

Jute exports have recorded a growth of 12.62% in 2005-06

as compared to the previous year 2004-05. During the

period April-December 2005-2006, jute exports were US$

223.37 million, recording a growth of 12.62% as compared

to the corresponding period of 2004-2005.

Implications of WTO agreement on the textile industry

Since 1970, India has built up a large-scale clothing industry.

During the course of the first and second MFA, in the 1970s,

India’s exporting companies enjoyed significant growth. The

abolition of quotas will certainly benefit some developing

countries, while others will lose out dramatically.

The biggest challenge the textile industry faces is to

radically alter its mindset. Indian industry will have to

become competitive by raising its level of efficiency to meet

the challenge both in domestic and international markets.

Every country’s textile industry is of strategic importance, as

it generates large-scale employment. Thus it becomes

necessary for countries to regulate the import of garments.

Regulation here takes a variety of forms including tariffs and

quotas.

With the completion of phasing out of the Multi-fibre

agreement (MFA) by 1st January 2005, India’s share in total

world textiles and garments exports is poised to reach 8.0%

by 2010 from the present 3.9% to become $50 billion sector.

With the termination of MFA agreement, India’s garments

segment is poised to fuel the country’s textile and garment’s

exports as this segment provides the highest per unit

realisation and has high value added content.

The year 2006 has ushered in a new beginning in the world

trading system with a regime of quota free trade in textiles

and clothing. The textile sector has been subject to various

restrictions since 1961; it has finally been integrated in the

world trade organization (the successor to GATT) starting

January 1, 2005.From 1961-1994, Multi Fibre Agreement

(MFA) governed this sector.

In 1995, the MFA was integrated into the WTO via the

Agreement on Textiles and Clothing (ATC)

Against this background , it is likely that the changed

scenario is offering significant export opportunities to the

Indian Textile industry.( Binding quota restricted India and

China, especially with regard to clothing though they have

strongest revealed comparative advantage –RCA-in textile

and clothing.)

POST QUOTA REGIME:

January 1, 2005, was a momentous day in the annals of world trade since it

signaled the end of three decades of restrictive trade practices in textiles in

the form of Multi Fibre Agreement or MFA, better known as quota regime.

Introduced in 1974 by nine countries- Canada, France, Germany, Italy,

Portugal, Spain, Greece, UK and US – the quota regime restricted imports

from as many as 39 countries with India and China being the worse hit .The

system of quota was intended to provide breathing space for industrialized

nations to allow less developed countries like Bangladesh ,and from

countries with which they had preferential trade agreement ,like Mexico to

compete .the complete phase out of the MFA by 2005 under Agreement on

textiles and clothing(A$C) put an end to quantitative restrictions. for

exporters in India it gives a tremendous opportunity to boost export.

A report by leading rating agency Fitch said;”the cost of retaining the MFA

have evidently outweighed its benefits. Protectionism has skewed global

distribution ,employment and investment pattern but has also failed to stem

the slide in Textile and Clothing (T $ C) employment in industrialized

countries.” the report also notes that for each job saved in developed world,

as many as 35 jobs were lost in the developing world, notably in India and

China.

The Fitch report like many other reports, is particularly bullish on the

prospects for India and China I the post quota regime. The report estimates

that while India could benefit to the tune of 8.4%of its current external

receipts (CXR or export earnings), I the case of china, it would be a gain of

3.9%of its CXR.

According to Mr. Raghav of leading consultancy KSA Technopak:” There

would be three key determinants for a nation to succeed in post quota

regime. These are raw material production base, ability to convert raw

material into finished goods, the low cost of operations, and reliability as a

supplier.

India, Mr. Gupta notes, has the benefit of being strong on all four counts and

is poised to do well in the post quota regime. While admitting the dominance

of China as a leading supplier of textile and clothing, Mr.Gupta says there

are enough safeguards to prevent it from monopolizing the market.

The china safeguard allows the erstwhile quota deploying nations to regulate

imports. it works like this-incremental supplies in a specific category would

be limited to 7% year-on-year till 2008. Interestingly enough, the Chinese

government on its part has already moved in to rein its overzealous exporters

by levying an export tax covering some key categories like

CAT347/348(trousers and shorts). According to Mr. Rajan Hinduja of

Golakdas exports, although Indian exporters could see a marginal rise in

apparel exports arising out of the Chinese decision (to impose the tax), the

move is not likely to have a major impact as India accounts for under

5%share of the US market

India can only be perceived as a threat when it reaches the level of china

which meets around 25% of the US imports. But there is a flip side to the

post quota story. For one, the abolition of quotas is expected to hit some

countries really hard .Textiles and Clothing which accounted for 18% of

Vietnam’s export earnings in 2003 are expected to witness a slide thanks to

rising competition from India and China in the post quota era.

Similar is the story with Tunisia which derives a whopping 48% of its export

earnings from this sector. Another worrisome issue could be the rise of non

tariff barriers. While short term measures of reciprocal market access and

transitional safeguards are currently being put in place by the industrialized

nations, the downside risk remains that political pressure may increase non

tariff restraints as a new line of defense.

WHO GAINS AND WHO LOSES:

CHINA 3.9%

INDIA 8.4%

TURKEY -2.2%

PHILIPPINES -1.7%

INDONESIA -0.9%

INDIA VS. CHINA:

China is undisputed leader in the world textile sector, making a quarter of

the apparel sold world wide. But India enjoys few key benefits over

china ,which will come into play in the post quota era.

CUTTING EDGE:

India is self sufficient in cotton

In India, the 2.7 million tones of cotton consumed by its textile

industry is all grown at home. China on the other hand, imports a fifth of

its cotton requirement.

Higher export realization:

While china caters to the mass segment, India has the ability to

service high value niche orders and has better designer resources. this

is reflected in the average export realization of the two countries.

while the realization for India is $4, that for china is $3-$3.5 per piece,

according to KSA Technopak.

No WTO Restrictions against India:

The WTO agreement provides that countries can place filters if an

export from China threatens to grow by more than 7.5%for the next

three years. There is no such provision against India.

The US Textile industry is lobbying hard to block dumping of products

from china.

WHY IMPORT FROM INDIA AT ALL:

The India textile industry is emerging as the next best alternative to China.

Importers from developed countries are trying to reduce their dependence on

china and increase sourcing from India.

There are also those in the industry who believe that the size is not all that

matters and that china lacks the flexibility to meet smaller, custom made

requirements. India on the other hand is capable enough to provide fashion

driven products although in smaller volumes, which probably makes it more

amenable to experimentation. India also has the advantage of designing and

embroidery.

Sections of Indian textile industry which are likely to pick up the most:

The garment industry stands to gain most directly post MFA.In the last 10

years, the quotas on other textile items(outside the garment)have been

gradually lifted to meet the requirements of the ATC.The developed

countries have kept the removal of quotas on garments to the final phase. So

it is only in 2005 that the market for garments will completely open up.

International retailers are also increasingly sourcing apparel from China and

India, which is a positive development for garment industry. The cotton

spinning industry may also benefit ,but indirectly. It may see a surge in

domestic demand from garment exporters.

THE BIG BUYERS:

Wal-Mart, JC Penney’s Sra Lee and a host of other international retailers

have announced plans to increase sourcing from India and have approved

manufacturing facilities in places such as tirupur.

The sudden surge in these outsourcing contracts comes in the wake of

manufacturing units shutting down in the developed countries.

For example ,the home textile segment shows promise ,as leaders in the US

market such as Pillowtex and west point have filed for bankruptcy. again,

Levi Strauss has closed down a number of its plants in the US and is now

focusing more on marketing.

Retailers will therefore, be looking to increasing their sourcing from India

and other countries to meet their demand supply gap.

WILL THERE BE EQUAL VALUE AND VOLME GROWTH:

While volumes are expected to expand faster, the value of Indian textile may

grow at a lower rate. for one, there will be more competition , and hence

greater pressure on pricing. Second, exporters have in the past resorted to

purchasing quotas to expand their exports.

The cost of acquiring these quotas has been passed on to the buyer. in the

absence of quotas, these costs will disappear and exporters may lower the

prices of the garments.

RECENT PERFORMANCE OF TEXTILE INDUSTRY:

India’s texitile exports to the US and EU have marked a quanrum jump

during the first half of the calendar year 2005, marking strong performance

after the elimination of quotas. In the US market ,India’s export achieved a

growth of 29.5% while it has grown nearly 75% in the EU.

“india’s performance is much higher than the average growth of imports of

tetile and clothig to USA , which is 10.98%.” says B.K.Patodia,

chairman ,TEXPROCIL. In terms of growth India stands next to china.

India’s traditional competitors like Pakistan , Indonesia and turkey have

shown lower growth during this period.

IMPORTS OF TEXTILES AND APPARELS INTO USA

Jan-june2004 Jan-june2005 % growth

Total imports 38174.07 42365.90 10.98

India 1797.13 2328.71 29.59

China 6432.91 10750.29 67.11

Indonesia 1257.74 1430.93 13.77

Vietnam 1233.42 1261.83 2.3

Bangladesh 911.49 1107.24 21.48

Pakistan 1191.51 1321.64 10.92

Turkey 853.87 813.43 -4.74

SOURCE :OTEXA VALUE IN MILLION US$

While the export dat published by DGCIS are contentious, the information

available from leading importingcountries like USA and EU show that

india’s performance has been highly encouraging in the post quota

period ,he pointed out. Referring to specific products ,patodia pointed out

that india’s export of items like cotton yarn , knitted fabrics and home textile

products have registered a positie growth. Import of home textile categories

from India into the US like pillowcases (56.24%), sheeting(56.31%) bed

spreads(12.06%) and towels(19.11%) have registered impressive growth.

In the European union too. India has shown a positive growth of 6.82%

during the period jan-april 2005. considering the decline in overall imports

from extra- EU sorces into the European union,india’s performanceshould

be considered commendable.india’s growth has been achieved not only in

garment items but also in hone textile products like cotton bed linen, table

toilet linen ,etc.

With fresh restrictions been put up on china by the EU and imminent threat

of further restrictions being imposed by the US, exportes of textiles and

garments from India have good opportunities to increase their sales in these

markets.

Invaluable help has been provided to the Government of India in the area of

framing of policies that have a bearing on the exports of cotton textiles. This

has helped in the creation and nurturing of a healthy trade climate and

exporter-friendly policies which have been the primary reasons for the boom

in exports. The role played by TEXPROCIL in the finalisation of the Multi

Fibre Arrangement and in the negotiations at the World Trade Organisation

has been extremely commendable

The rise in exports has spawned a spate of protection measures, amongst

them being the fervent efforts by the European industry to protect their own.

Anti-dumping has been one of the first attempts in this direction. This has

been followed by anti-subsidy investigation

An export of Indian cotton textiles has shown tremendous growth in all

categories: yarn, fabrics and made-ups reaching more than 4 billion US$ in

value terms and covering over 185 countries spanning 5 continents.

India has become one of the world's largest exporters of yarn for every kind

of application from hosiery to weaving. Fabrics account for a third of India's

cotton textile exports. Made-ups from India can be found on the shelves of

the leading departmental store across the globe.

CHALLENGES AND OPPORTUNITIES IN THE TEXTILE

INDUSTRY

India is confronting the problem of huge unemployment and poverty.

Overcoming this problem is the top most priority of Government of India. In

this context, Government has recognized the role of export - led growth. No

industry is better equipped than the textile industry to play a critical role in

creating employment opportunities and significantly contributing to India’s

emergence as a powerhouse in the world economy.

These objectives can be met through higher investments. Attracting fresh

investments to remain competitive is the greatest challenge faced by the

Indian textile industry. It is true that the level of investments has gone up in

recent years. Yet this is not enough in reaching the target. Large investments

are required across the entire value chain of the industry to make the

products more competitive in the global market. To achieve the export target

of 50 billion USD by 2010, investments of the order of Rs.1,40,000 Crores

(US $ 32 billion) are required. This would generate 12 million additional

jobs. However, the new investments in the industry are much less than the

desired level. Foreign direct investment in the textile sector is almost non-

existent. Major textile producing countries like China, Pakistan, Bangladesh,

Vietnam, Sri Lanka have been able to attract higher investments and thus

pose real challenge to India in the international arena..

India has a natural competitive advantage in terms of a strong and large

MFA base, abundant and cheap skilled labour, and presence across the entire

value chain of the industry ranging from spinning, weaving and garment

manufacturing. However, both productivity and efficiency have to be

stepped up in order to meet the challenges of global competition. There must

be a bold and reasonable price policy for cotton all over India, to enable the

textile and garment industry to grow and catch up with China.

In India, presently due to the presence of big players doing everything under

one roof is going to benefit the textile sector to grow and consolidate in

newer markets world-wide, by exploiting the economies of scale available in

post MFA. This is going to be one of the important factors in determining

India’s competitiveness

India’s well-developed fashion design industry is another factor, which can

cater to the rapidly changing fashion trends and demands with the aid of

large base of skilled workers available in the country.

Since a large portion of exports is from the lower priced segment where

labour intensity is high, it is important to improve the efficiency and

productivity to increase the cost competitiveness of these segments. It is

only then that India can compete in this segment where competitiveness is

driven by lower costs.

The industry is also suffering because of very slow technological up

gradation. This is one of the reasons for lower efficiency and productivity in

the Indian textile and clothing industry. Also the quality of Indian products

suffers, especially in the standardized mass production market.

Management Research Project

INTERIM REPORT

Textile Export from India post MFA(Multi Fibre Agreement)

5 T H J A N U A R Y ’ 2 0 0 7

A R E P O R T S U B M I T T E D I N P A R T I A L F U L F I L L M E N T O F T H E R E Q U I R E M E N T S O F

M B A P R O G R A M O F I C F A I B U S I N E S S S C H O O L , G U R G A O N

Submitted To: Submitted By:

Prof. Sujoy Das Gupta Nidhi YadavFaculty, ICFAI Gurgaon 05BS2044