INDIAN GARMENT INDUSTRY

INDIAN GARMENT INDUSTRY Womens' Apparel Figure 4 5 In the total apparel market size of Rs 122,400 crore in 2007, among the three major apparel segments, menswear formed the largest block

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Indian Garment Industry

INDIAN GARMENT

INDUSTRY

Made by:

Puneet Khurana Manika Pahwa Arushi Bansal Rachit Dhingra Akanksha Sharma

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INDIAN GARMENT INDUSTRY

2

ACKNOWLEDGEMENT

The fulfillment of any research project work is in consequence of integrated effort of a number of people This project report has been possible only through the guidance and help of many people We hereby take an opportunity to express our sincere thanks to all those for their help and guidance We would like to express our genuine gratitude to Mr Rahul Jain for his valuable guidance in research and analysis through out the project With his unfaltering support and direction, we have been able to complete this project and learn a lot The two log submissions during the project period really helped us in identifying and rectifying the mistakes and shortcomings in the project

We would finally thank all those friends who helped us in the completion of this project

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3 Types of Merchandise and their Demand

4 Supply Chain in Apparel Sector

5 Key Players

• Brief profile of key players

• Differentiation

6 Key Issues in Indian Garment Sector

7 Exports in Garment Sector

• Reasons for India’s recent sluggish export performance

8 Analysis of Decade Performance

9 USA and EU Dominancy

• Zero-Zero Benefit

10 Retail Scenario

11 Indian Apparel Sector Trends

• Salient Feature of India Apparel Sector

• Production in Apparel Sector

• Recent Trends

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12 Technology and Indian garment Industry

• Role of Technology

• Types of CAD Systems

• Apparel Industry and Computers

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EXECUTIVE SUMMARY

Fashion is serious business, everywhere Admittedly, India was a latecomer in the scene, but the pace now is scintillating This is testified through the escalating figures of the garment market as also by the growing tally of fashion brands and retailers who have occupied substantial share of the country’s retail space Truly, the clock cannot be turned back now

Over the past year, the garment industry has been building up on its capacities at various levels, expanding its product base, incorporating innovative technology, and engineering newer avenues of business This sector, being one of the largest industrial sectors of the country, is a major propellant of the economy’s growth Inherent issues and challenges dominate the industry With the changing dynamics

of doing business in a rapidly-changing global economic scenario, the sector needs

to identify scopes for potential business ideas and overcome challenges by converting them into fresh opportunities

The project aim is to understand how various movements in the economy affect the garment industry An in-depth analysis for implications of various government policies on garment industry has also been done The project work also highlights how important is the garment industry to the growth of our economy The study also gives insights about the demographics and psychographics of Indian consumers, the key players in the industry and recent trends in the industry

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OBJECTIVES

The objectives of the project work are:

! To understand the impact of various government policies on Garment industry

! To analyze various opportunities and threats confronted to Garment industry

! To understand the demographics and psychographics of Indian consumers

! To understand the reasons for India’s recent sluggish performance in exports for textiles & garments

! To understand the entire process of garment manufacturing and budgeting implications at each stage of manufacturing process

! To study the trends in the apparel industry (Retail, Exports & Technology)

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The apparel and industry occupies a unique

and important place in India It is one of the

earliest industries to come into existence in

the country The apparel industry caters to

one of the most basic requirements of

people and holds importance; maintaining the prolonged growth for improved quality of life The sector has a unique position as a self-reliant industry, from the production of raw materials to the delivery of end products, with considerable value-addition at every stage of processing Over the years, the sector has proved

to be a major contributor to the nations' economy Its immense potential for generation of employment opportunities in the industrial, agricultural, organized and decentralized sectors & rural and urban areas, especially for women and the disadvantaged is noteworthy

History

The history of apparel in India dates back to the use of mordant dyes and printing blocks around 3000 BC The foundations of the India's textile trade with other countries started as early as the second century BC A hoard of block printed and resist-dyed fabrics, primarily of Gujarati origin, discovered in the tombs of Fostat, Egypt, are the proof of large scale Indian export of cotton textiles to the Egypt in medieval periods

During the 13th century, Indian silk was used as barter for spices from the western countries Towards the end of the 17th century, the British East India Company

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had begun exports of Indian silks and several other cotton fabrics to other economies These included the famous fine Muslin cloth of Bengal, Orissa and Bihar Painted and printed cottons or chintz was widely practiced between India, Java, China and the Philippines, long before the arrival of the Europeans

Growth of Indian Garment Industry

The industry has already given ample hint of ingenuity, as is evident from the revival of consumer enthusiasm in the seemingly stagnant menswear segment, besides remarkable growth in categories like sports wear, casual wear and party

wear The apparel market has grown 15.5% to INR 1,224 billion

Apparel Market Growth Rate

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2010 ex

3

Images Yearbook 2008

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The country’s organized retail is booming because of increasing private incomes and changing lifestyles and consumption pattern of consumers is having a positive effect on the apparel industry There has been a rapid increase in the market size of ready-to-wear clothing and lifestyle apparel brands

Indian Apparel Market Growth

2010 ex

4

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apparel manufacturers, retailers and merchandisers across retail formats- such as exclusive outlets, multi brand outlets, department stores, discount formats and hypermarkets – and the heightened interest in the franchise route for retail expansion are all contributing to the rapid growth of apparel retail

Considering the country’s present economic preference, fashion retail can only continue to grow in direct proportion to the rising incomes and spending powers of Indian consumers With about 65% of these consumers below 35 years of age, apparel retail can only reign supreme in the marketplace

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Womens' Apparel

Figure 4 5

In the total apparel market size of Rs 122,400 crore in 2007, among the three major apparel segments, menswear formed the largest block with 40.2%6 of market share, while womenswear followed with 34.8% and kidswear/uniforms followed with its

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Growth trends across various apparel segments during the six-year period from

2002 to 2007 shows that menswear which had registered a steady decline in the

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at 5.9% as compared to a 5.8% volumes growth in womeswear

Growth in Apparel Segments during 2007over 2006

9

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Highest volumes as well as value growth are recorded in the uniforms segment, which is currently valued at rs 11,500 crore While the segment recorded as 9.3% volume growth in 2007 over 2006, its value growth was as high as 22.5%, over 21.2% annual growth during 2005

The next highest volumes growth is in unisex apparel (6.5%), where value growth was to tune of 15.7% resulting in a market size of Rs 11,980 crore Volume and value growth in 2005 were 4.2% and 13,6% respectively With the menswear segment coming alive and all other segments also growing faster year after year, the market is sure on a revival track

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With regards to market share of apparel segments, from a 37.3% value in share in

2002, the menswear segment share has steadily declined to 35.4% in 2007 Womenswear market share, on the other hand, has steadily increased during this

10

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Unisex apparel has maintained a more-or0less plateau market share at 9.8% during

2006 and 2007, although it increased rapidly from 7.7% in 2002 to the present level Kidswear too has maintained a more-or-less plateau market share at 14.1% during 2006 and 2007, but unlike unisex apparel, its market share had steadily declined from 16.2% in 2002 to the level in 2006

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TYPES OF MERCHANDISE AND THEIR DEMAND

The consumer has all kinds of demands for apparel The consumer demand can be broadly trifurcated into three segments: Basic, Basic Fashion and Fashion Apparel

Basic apparel consists of highest volume with moderate demand uncertainty and is priced relatively low On the other hand, fashionable attire comprises lowest volume with volatile demand, but is highly priced Mass-product is the feature of basic-product segment and customized merchandise becomes the hallmark of fashion-product category Therefore, depending to which demand-segment they cater to, apparel organization needs to formulate suitable supply strategy

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SUPPLY CHAIN IN APPAREL SECTOR

Supply Chain Management is the integration of key business processes from end user to original suppliers that provides products, services, and information that add value for customers and other stakeholders

The Apparel Supply Chain

The Apparel Supply Chain comprises diverse raw material sectors, ginning facilities, spinning and extrusion processes, processing sector, weaving and knitting factories and garment (and other stitched and non-stitched) manufacturing that supply an extensive distribution channel This supply chain is perhaps one of the most diverse in terms of the raw materials used, technologies deployed and products produced

This supply chain supplies about 70 per cent by value of its production to the domestic market The distribution channel comprises wholesalers, distributors and

a large number of small retailers selling garments and textiles It is only recently that large retail formats are emerging thereby increasing variety as well as volume

on display at a single location Another feature of the distribution channel is the strong presence of ‘agents’ who secure and consolidate orders for producers Exports are traditionally executed through Export Houses or procurement/commissioning offices of large global apparel retailers

It is estimated that there exist 65,000 garment units in the organized sector, of which about 88 per cent are for woven cloth while the remaining are for knits However, only 30–40 units are large in size (as a result of long years of reservation

of non-exporting garment units for the small scale sectors – a regulation that was

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removed recently) While these firms are spread all over the country, there are clusters emerging in the National Capital Region (NCR), Mumbai, Bangalore, Tirupur/Coimbatore, and Ludhiana employing about 3.5 million people According to our estimate, the total value of production in the garment sector is around Rs.1,050–1,100 billion of which about 81 per cent comes from the domestic market The value of Indian garments (e.g saree, dhoti, salwar kurta, etc.) is around Rs.200–250 billion About 40 per cent of fabric for garment production is imported – a figure that is expected to rise in coming years

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Distribution Channel (Export & Domestic Markets)

Man-Made:

Filament Extrusion Process

Composite Mills (spinning, weaving,

Stand-Alone Weaving (mid-size)

Power looms (small)

Handlooms Knitting

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Indian Garment Industry

The weaving and knits sector lies at the heart of the industry In 2004-05, of the total production from the weaving sector, about 46 per cent was cotton cloth, 41 per cent was 100% non-cotton including khadi, wool and silk and

13 per cent was blended cloth Three distinctive technologies are used in the sector – handlooms, powerlooms and knitting machines They also represent very distinctive supply chains The handloom sector (including khadi, silk and some wool) serves the low and the high ends of the value chain – both mass consumption products for use in rural India as well as niche products for urban & exports markets It produces, chiefly, textiles with geographical characterization (e.g., cotton and silk sarees in Pochampally or Varanasi) and in small batches Handloom production in 2003-04 was around 5493 mn.sq.meters of which about 82 per cent was using cotton fiber Handloom production is mostly rural (employing about

10 million, mostly, household weavers) and revolves around master-weavers who provide designs, raw material and often the loom

Weaving, using power looms was traditionally done by composite mills that combined it with spinning and processing operations Over the years, government incentives and demand for low cost, high volume, standard products (especially sarees and grey cloth) moved the production towards power loom factories and away from composite mills (that were essentially full line variety producers) While some like Arvind Mills or Ashima transformed themselves into competitive units, others gradually closed down In 2003-04, there remained 223 composite mills that produced 1434 million sq mts of cloth Most of these mills are located in Gujarat and Maharashtra Most of the woven cloth comes from the power looms (chiefly

at Surat, Bhiwandi, NCR, Chennai) In 2005, there were 425,792 registered

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Indian Garment Industry 23

power loom units that produced 26,947 mn sq mts of cloth and employed about 4,757,383 workers Weaving sector is predominantly small scale, has on an average 4.5 power looms per unit, suffers from outdated technology, and incurs high co-ordination costs Knits have been more successful especially in export channels Strong production clusters like Tirupur and Ludhiana have led to growth of accessories sector as well, albeit slowly The hosiery sector, on the other hand, has largely a domestic focus and is growing rapidly

The spinning sector is perhaps most competitive globally in terms of variety, unit prices and production quantity Though cotton is the fiber of preference, man-made fiber (polyster fibre and polyster filament yarn) is also produced by about 100 large and medium size producers

Spinning is done by 1566 mills and 1170 Small and Medium Enterprises (SME) Mills, chiefly located in North India, deploy 34.24 mn spindles and 0.385 mn rotors while the SME units produce their yarn on 3.29 mn spindles and 0.119 mn Rotors producing 2270 mn kg of cotton yarn, 950 mn kg of blended yarn and about 1106 mn kg of man-made filament yarn every year Worsted and non-worsted spindles (producing woolen yarn) have also progressively grown to 0.604 mn and 0.437 mn respectively Spinning sector is technology intensive and productivity is affected by the quality of cotton and the cleaning process used during ginning

The processing sector, i.e., dyeing, finishing and printing is mostly small in scale The largest amongst these would dye and finish about 5000 m/day The remaining are independent process houses (or part of composite mills) that use automated large batch or continuous processing and have an average

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scale of about 20,000 m of cloth daily About 82.5 per cent or 10,397 units are hand processors who dye cloth or yarn manually and dry in open sunshine Of the remaining (and these use automated and semi-automated equipment), 2076 are independent process houses

Cotton remains the most significant raw material for the Indian textile industry In 2003-04, 3009 mn kg of cotton was grown over 7.785 mn acres Other fibers produced are silk (15742 tonnes), jute (10985000 bales), wool (50.7 mn kg) and man-made fibers (1100.65 mn kg) Cotton grows mostly

in western and central India, silk in southern India, jute in eastern and wool

in northern India Significant qualities of cotton, silk and wool fibers are also imported by the spinning and knitting sectors (Except for garments, all data in this section was obtained from OTC 2004 and Texmin 2005.)

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COTTON THE PRIME RAW MATERIAL

India produces about 5,000 crore square meters of fabric annually with per capita availability of cloth being 36.2 square meters As of now 60% of the total produce is consumed within the country but the share of exports is expected to increase substantially over the next few years In value terms, it

is estimated that the apparel and textile market will be worth USD 87 billion

by year 2010 with exports worth USD 45 billion and local consumption of USD 42 billion The domestic market for clothing and home textiles is estimated to be worth Rs 137,100 crore, of which pure cotton contributes 33% of the value share, various cotton blends make up 39% and the remaining 28% value is realized from non-cottons Of the 137,100 crore clothing and home textiles domestic market, cotton and cotton blends contribute approximately Rs 98,766 crore Of this share of 100% cotton products is 45,200 crore and that of cotton blends is Rs 53,560 crore Men’s shirts, kidswear, men’s trousers, salwar suits, men’s formal suits and jackets record maximum usage of cotton and cotton blends After cotton, pure silk, synthetics and wool are mostly commonly used fabrics

The Cotton market

As of 2007, the ten largest producers of cotton in the world are: China, India, USA, Pakistan, Brazil, Uzbekistan, Turkey, Greece¸ Turkmenistan and Syria The five leading exporters of cotton are: USA, Uzbekistan, India, Brazil and Burkia Faso The largest non-producing importers are Bangladesh, Indonesia, Thailand, Russia and Taiwan

The demand for cotton is strongly influenced by comparative prices vis-à-vis manmade fibers, also known as artificial and synthetic fibers Artificial

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fibers like viscose rayon and acetates are made from organic polymers derived from natural raw materials, mainly cellulose Synthetic fibers including acrylics, polyamides and polyesters are generally derived from petrochemicals and petroleum products

India Demand and Supply situation for cotton

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KEY PLAYERS

S no Menswear Womenswear Kidswear

1 Aditya Birla Nuvo Aditya Birla Nuvo Lilliput

Brief Profile of Key Players

Aditya Birla Nuvo

Aditya Birla Group is in the league of Fortune 500

It is anchored by an extraordinary force of 100,000

employees, belonging to 25 different nationalities

In India, the Group has been adjudged "The Best

Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007 The apparel business of Aditya Birla Nuvo dominates the premium and popular segments of the Indian lifestyle market with its companies, Madura Garments Lifestyle & Retail and Peter England Fashions & Retail

Aditya Birla Nuvo Brands:

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Raymond

A 100% subsidiary of Raymond Limited, Raymond

Apparel Ltd (RAL) ranks amongst India's largest and

most respected apparel companies RAL entered into

the ready-to-wear business with the introduction of

Park Avenue in 1986 catering to the men's formal wear market Parx was launched in 1998 to address the growing trend of smart casuals In 2000, Manzoni, a luxury lifestyle brand was launched offering a super-premium formal range of men's shirts, suits, trousers, jackets, ties and leather accessories Raymond identified the vacuum for a high end, casual wear brand and hence decided to acquire ColorPlus as a part of strategic expansion plan for their ready-to-wear business Notting Hill was launched

in 2007 to cater to the popular price segment In addition to this, Raymond Apparel has also ventured into the kidswear segment with its exclusive brand Zapp!

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Koutons

Koutons retail is the leading manufacture of

readymade and stylish fashion wear brand in the

country today With more than 1365 outlets across 493 cities in India, Koutons a wide range of apparels in men, women and children wear Koutons has positioned itself as a “Fashion and Quality at Affordable price” for the middle to high segment

Koutons got into female segment this is April 2008 by launching their brand less femme This brand caters to young women in the age group of 16-34 years and includes apparels like t shirt party wear etc it also launched their brands kids junior catering to young boys and girls in the age group 2-14 years

Koutons further plan to enter the footwear segment in October and add men’s innerwear in its portfolio Currently Koutons has four brands under it umbrella Koutons men’s wear, les femme Koutons Junior and Charlie outlaw

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Arvind Mills

Arvind Mills was established in 1931 It was founded

by Kasturbhai Lalbhai, one of the leading families of

Ahmedabad Arvind’s brand portfolio includes: Lee ,

wrangler, nautical, Jansport, Kipling, Tommy, Flying Machine, Excalibur, Arrow, US Polo , Izod, Pierre Cardin , Palm beach ,Cherokee, Gant, Hart Schaffner, Marx, Sanabelt It manufactures denims, shirting, khakhis, knits, and garments The company has a turnover of approx $500 million and is a part of over 100 year’s old Lalbhai group

Arvind entered into exports of garments setting up shirts factories in Bangalore 2001 This modest beginning has quickly grown to a capacity of around 4.50 million shirts, annum and the list of customers includes dockers, gap, next, Espirit, FCUK, Osh, Kosh and many others

The lalbhai group subsidiary Arvind Mills said recently that it temporarily suspending expansion plans for two apparel brands, Rider and Hero, which the company had jointly developed with the US based branded lifestyle apparel player VF Corporation The two companies had signed the JV agreement in 2006 establishing the VF Arvind Brands to design market and distribute VF’s branded lifestyle apparel in India

Arvind Mills’s Brands

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Wills Lifestyle

ITC’s lifestyle retailing business

division has established a

nationwide speciality retail presence through its Wills Lifestyle, a chain of exclusive speciality stores Wills Lifestyle, as a fashion destination, offers Wills Classic work wear, wills lifestyle, as a fashion destination, offers Wills Classic work wear, Wills clublife evening wear and fashion accessories Wills Signature designer wear

ITC forayed into the youth segment with the launch of john players in December 2002 The brand available pan India through a network of over

1300 multi brands outlets The launch of Miss Player is currently available at select exclusive stores, select John Players stores and multi brand outlets

Wills lifestyle currently command retail space with 50 EBO’s of 2,500 sq ft each and plans to add 50 additional EBO’s in next two years John players and miss players is available in 250 EBO’s and 1300 MBO’s with plan of add 100 more EBO’s in next two years

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Differentiation among key players

Product

Range

Men’s, Women’s &

Men’s, Women’s

&

Kidswear

Men’s, & Womenswe

Positioning Presence in all segments High End Value for Money Presence in all

segments High End

Tie Ups

Many International Players- Louis Philippe, Van Heusen etc

All company hold brands

Many International Players- Wrangler, Nautica, etc

All Company hold brands

Media

Used for

promotion

Print, electronic, hoardings, In store

Print, electronic, hoardings, In store,

Hoardings, print, POP

Print, electronic, hoardings, In store

Quality Different quality in different brands High Quality Medium Quality

Different quality in different brands

High Quality

Loyalty

Program For Some Brands No No

For Some Brands Yes

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KEY ISSUES IN INDIAN GARMENT SECTOR

The readymade garments segment benefited the most with the abolishment

of the quotas According to the Apparel Export Promotion Council (AEPC), readymade garments export from India is expected to reach US$14.5 billion

by 2009-10 Presently, it accounts for 43 percent of total textile exports and six percent of India’s total export

Fluctuation Rupee Value

The subsequent spurt in exports did elude exporters in the segment as most focused on short-term gains But with the economy growing and appreciation in the rupee value, there was a rather different tale to unfold With an appreciation in rupee value, the apparel and textile export industry now needs more introspection to reduce the extent to the blow Export agreements, which were conducted in US dollars, faced the most severe blows

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Though India enjoys the advantage of a host of low costs in textile and apparel manufacturing, subsidies and supply of cheap labour currently faces threat from its neighbouring competitors- Bangladesh, Vietnam and Sri Lanka These countries with minimal cost, under valued exchanged rates, low taxes, subsidies and plentiful cheap labour could result in sail of the industry to these locations

Unemployment

As per a Confederation of Indian Textile Industry (CITI) study, total employment generation from exports was at 25.80 lakh in 2004-05 The CITI study points out that with appreciation of Rupee, the growth rate of apparel and textile exports decreased from 16.6 percent to 9.2 percent in 2006-07; and this has already reduced employment from the apparel and textile export trade by about 1.22 lakhs, and can further lead to an overall loss of over six lakh jobs, unless serious remedial measures are undertaken

to prevent the crisis Under present circumstances, it’s estimated that about 2.72 lakh jobs will be lost in direct employment in the textile and apparel industry in 2007-08

Lagging in Cost and Technology Spheres

Post MFA, exports splurged and substantial capital expenditures were made

to diverse and also re-inforce production capacity to meet the growing domestic demand For the short term this may be fine but mere increasing the productivity was not a solution rather improving productivity and cost efficiency ought to be the long term goal In this segment, Indian Apparel and Textiles companies face threat from low-cost Chinese Companies while negotiating with tough global buyers

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It has also been observed that the textile and apparel sector witnessed more investment in existing technology than on new technology Although nano-technology has helped in developing manmade fibres (and filament yarn), the industry still lags behind it counterparts in the United States, china, Europe and Taiwan Import of new and advanced technology could certainly compensate for the losses on account of exports due to declining dollar

Existence of long and complex Supply Chains causing lengthening of lead – time

The supply chain in India is highly fragmented mainly due to government policies (SSI reservation) and lack of coordination between industry and trade bodies Existence of large number of intermediaries adds to the cost but also lengthen the lead times The countries who have significantly consolidated their supply chain are globally competitive – Korea, China, Mexico, Turkey

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EXPORTS IN GARMENTS SECTOR

READYMADE GARMENTS

Value of Exports - READYMADE GARMENTS11

%age Share

in India's RMG Exports

%age Change in India's RMG Exports

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EXPORT TO WORLD 12 (VALUE IN US$ MILLION)

• Slowdown in demand from some major importers

• The depreciation of the US dollar, resulting in an appreciation of the rupee vis-à-vis competitor countries that were partially or wholly pegged

to the US dollar

• Labour laws and scale economics: Countries like China have historically had high labour flexibility in their export oriented units This has allowed them to achieve large scale in terms of labour force employed in each manufacturing facility and reap the benefit of scale economies and use the latest advanced machinery from developed countries India, in

12

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contrast, because of fragmentation of units and small scale (to avoid labour laws applicable to employees above 100 and procedural biases and rigidities), has purchased relatively less of such advanced machinery

• Logistical delays and costs: though the national highways are improving, this is not true of connectivity to all sources and destinations The turnaround time in major ports of India and movement of cargo between ships and source or destination within India is still plagued by monopolistic bureaucratic structures with little accountability and incentives for efficient service delivery to the exporter and importer

• High cost of power in India this is 1.5-2 times higher then in competing nations

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ANALYSIS OF A DECADE PERFORMANCE

OF THE GARMENT INDUSTRY

The period of 1997 and 2007 was momentous for the garment industry, both globally and domestically South –east Asian currency crisis struck in 1998 and December 2004 marked the end of Agreement on Textile and clothing (A.T.C) limiting exports of garments from India to U.S.A and E U, the two main importers of garment world-wide

As is this was not enough, the government clamped Excise Duty on woven garment for the first time in its history The move orchestrated a massive protest in all sections of the industry from manufacturing to retail For once, disparate sections appealed to government to roll back the duty But government remained stubborn to its decision endangering export orders painstakingly entered into mark the end of ATC Its after effects hit the industry hardest when the country lost substantial foreign exchange The following year only gave cosmetic relief to the industry after the change of the government at the centre in the general election

The new government, alive to the plight of the industry, made the excise duty optional to CENVAT Credit with the object of lowering the cascading influence of duty on the common man Investment in the industry which had dried up in the wake of excise duty enforcement, started flowing freely and the industry came into its own by expanding capacity, merging and making acquisitions (both domestic and overseas) to present overseas buyers a picture of a resilient, expanding and competitive industry

Meanwhile, the exchange rate of the Rupee vis-à-vis the US dollar had been going through changes partly due to the economic boom in India and partly for the slow-down in US economy triggered by upsurge in petroleum prices

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Smaller and newly emerging Asian countries, now attempting to claim a large slice as possible of the global foreign exchange pie, quoted aggressively to entice buyers In turn, this had effect on unit prices quoted by India

The table presented below shows the movement of knitted and garment exports13, juxtaposed with their unit prices, movement in exchange rate and the years in which the tumultuous events took place

KNITTED

GARMENT GMT

EXPORTS

WOVEN GMT EXPORTS

EXCG RATE

REMARK UNIT VALUE

YEAR

ENDED

M Pcs Bn $ M Pcs Bn $ Knitted Woven Dec 1995 43.66 1.16 623.5 3.32 32.01 2.66 5.32 Dec 1996 560.2 1.47 644.5 3.32 34.87 2.62 5.15 Dec 1997 632.4 1.60 669.0 3.26 36.52 2.53 4.87 Dec 1998 682.0 1.63 655.7 3.42 41.27

S.E Asian currency crisis

2.39 5.22 Dec 1999 758.6 1.88 646.0 3.44 43.05 2.48 5.33 Dec 2000 827.7 2.06 679.1 3.72 44.87 2.49 5.48 Dec 2001 855.0 2.13 728.4 3.55 47.14 2.49 4.87 Mar 2002 610.0 1.23 783.0 3.15 47.72 18 % excise

duty on woven garments (2001 Budget)

2.02 4.02

Mar 2003 983.0 2.37 855.0 3.26 48.56 16 % Excise

Duty on Woven Garments (2002 Budget)

2.41 3.81

Mar 2004 1,113 2.66 711.0 3.54 45.86 2.39 4.98 Mar 2005 857 2.50 746.0 3.71 44.84 a)Excise

made optional to Cenvat b) Dec ’04 end of ATC

2.92 4.97

Mar 2006 1,148 3.18 1153.0 5.43 44.28 Mid= Year,

12 % Re appreciation

2.77 4.71 Mar 2007 1315 3.61 1070.0 5.26 45.29 2.75 4.48

13

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