Government of India Ministry of Textiles (International Trade Section) ***

Sub: 1.

Note on Textiles & Clothing Exports of India. Introduction

Indias textiles and clothing industry is one of the mainstays of the national economy. It is also one of the largest contributing sectors of Indias exports worldwide. The report of the Working Group constituted by the Planning Commission on boosting Indias manufacturing exports during 12th Five Year Plan (2012-17), envisages Indias exports of Textiles and Clothing at USD 64.41 billion by the end of March, 2017. The textiles industry accounts for 14% of industrial production, which is 4% of GDP; employs 45 million people and accounts for nearly 11% share of the countrys total exports basket. 2. i) Milestones Exports of textiles and clothing products from India have increased steadily over the last few years, particularly after 2004 when textiles exports quota stood discontinued. Indias Textiles & Clothing (T&C) exports registered a robust growth of 25% in 2005-06, recording a growth of US$ 3.5 billion over 2004-05 in value terms thereby reaching a level of US$ 17.52 billion and the growth continued in 2006-07 with T&C exports of US$19.15 billion recording a increase of 9.28% over the previous year and reached USD 22.15 billion in 2007-08 denoting an increase of 15.7% but declined by over 5% in 2008-09. Exports of Textiles & Clothing grew from USD 21.22 billion in 2008-09 to USD 22.41 billion in 2009-10 and has touched USD 27.47 billion in 2010-11. In the financial year 2011-12(P), exports of textiles and clothing, has grown by 20.05% over the financial year 2010-11 to touch USD 33.31 billion. Textiles exports in the period 2012-13 are witnessing a (-) 4.82 percent growth in dollar terms although there is 8.10 percent growth in rupee terms. The details of Indias textiles exports, principal commodity item-wise during the last three years and current financial year for the period 2012-13 is at Annex-I. During the year 2012-13, Readymade Garments account for almost 39% of the total textiles exports. Apparel and cotton textiles products together contribute nearly 74% of the total textiles exports. Indias textiles products, including handlooms and handicrafts, are exported to more than a hundred countries. However, the USA and the EU, account for about two-thirds of Indias textiles exports. The other major export destinations are China, U.A.E., Sri Lanka, Saudi Arabia, Republic of Korea, Bangladesh, Turkey, Pakistan, Brazil, Hong-Kong, Canada and Egypt etc.

ii)

iii)

iv)

v)

3.

Current Textiles & Clothing exports trend:

(a) Trend during the period 2011-12 (P). In rupee terms, during 2011-12 (P) there has been a surge in exports of Handloom product (68.51%), Coir & Coir Manufactures (40.49%), Cotton Textiles (37.23%), Man-made textiles (25.99%), RMG (24.80%), Wool & Woolen textile (20.97%) and Jute (4.72%). In US$ terms the surge during 2011-12 (P) registered in Handloom product (60.09%), Coir & Coir Manufactures (33.46%), Wool & Woolen textile (14.93%), Man-made textiles (19.69%), RMG (18.56%), Cotton Textiles (30.37%) and Jute (-0.52). Latest Trend during the period 2012-13 (P) The total textile exports during 2012-13 (P) were valued at Rs 172494.71 crore as against Rs 159570.55 crore during the financial year 2011-12, registering an increase of 8.10 percent in rupee terms. In US dollar terms, the same was valued at US$31705.53 million (2012-13, P) as against US$33310.21 million during the corresponding period of financial year 201112 registering a decline of 4.82 percent. Liberalised trading regime and emerging opportunities

(b)

4.

In the liberalized post-quota period, India has emerged as a major sourcing destination for buyers from all over the globe. As a measure of growing interest in the Indian textiles and clothing sector, a number of reputed houses opened their sourcing / liaison office in India. These include Marks and Spencer, Haggar Clothing, Kellwood, Little Label, Boules Trading Company, Castle, Alster International, Quest Apparel Inc., etc. Commercially the buoyant retailers across the world are looking for options of increasing their sourcing from the Indian markets. Indian manufacturers are also pro-actively working towards enhancing their capacities to fulfil this increased demand. 5. Country-wise analysis Indias country-wise exports for top 20 destinations during the last three years is at Annex-II. In the global exports of Textiles, India ranked as the third largest exporter, trailing EU-27 and China, as per WTO data 2011 (latest). In the global market exports of clothing, India ranked as the fifth largest exporter as per WTO data 2011 (latest), trailing Bangladesh, Hong Kong, EU-27 and China.

Indias textiles & clothing exports vis--vis total world exports are given below: (In billion US$) Year Textiles Clothing World Indias Indias %age World Indias Indias %age Export Exports share in world Export Exports share in world exports exports 2004 195.0 6.85 3.51 258 6.62 2.57 2005 203.0 7.85 3.90 276 8.29 3.00 2006 218.6 9.33 4.30 311.4 10.20 3.30 2007 241.3 9.81 4.06 347.06 9.93 2.86 2008 253.4 10.45 4.12 364.91 11.50 3.15 2009 211.1 9.12 4.32 315.62 11.45 3.62 2010 251 12.87 5.13 351 11 3.13 2011 293.5 15.01 5.13 412.45 14.36 3.48 Source: International trade statistics 2012, WTO Secretariat The latest available data released by WTO Secretariat, the values of top ten exporters of textiles & clothing in the world in calendar year 2012 are given below:Textiles (2011) Rank Name of the Country China EU-27 India Value % of world share 32.2 26.1 5.1 Rank (US$ billion) Clothing (2011) Name of the Country China EU-27 Hong Kong, China Bangladesh India Turkey Value % of world share 37.3 28.2 4.8 3.5 3.4 3.2 2.0 1.3 1.1

1. 2. 3. 4. 5. 6.

94 77 15

1. 2. 3.

154 116 25 20 14 14 13 8 5 5 412

United States 14 4.7 4. RP Korea 12 4.2 5. Hong Kong, 11 6. China 7. Taipei, Chinese 11 3.8 7. Viet Nam 8. Turkey 11 3.7 8. Indonesia 9. Pakistan 9 3.1 9. United States 10. Japan 8 2.7 10. Mexico World total 294 World total Source: International trade statistics 2012, WTO Secretariat 6. Textiles Exports 2012-13

The targets for textiles exports for 2012-13 initially set at USD 38 billion have been revised upwards to USD 39.60 billion, following the Foreign Trade Policy Annual Supplement in June, 2012. The details of exports targets fixed and achieved during the last

three years and current year sector and item-wise including apparel, man-made and cotton textiles are as under:

2010-11 Council RMG Cotton Textile (excl Raw Cotton) Man-made Textiles Handloom Woolen Textiles Silk Textiles Handicrafts # Jute Carpet Total Targets 12000 Achievement* 11026 Targets 14000

2011-12 Achievement* 13073 Targets 18000

2012-13 Achievement* 12391

5000 3700 300 630 730 2200 275 650 25485

5792 4705 346 442 632 2301 460 1037 26471

7000 5500 500 700 800 2700 350 800 32350

6808 5631 554 508 473 2706 457 846 31056

9000 6100 400 750 500 3300 500 1050 39600

7517 5043 518 418 406 3305 387 986 30971

*Based on DGCI&S data (Principal Commodities) # As reported by the Export Promotion Council for Handicrafts (EPCH)

7.

Imports

The total imports of T&C products by India reached US$ 5.22 billion during the calendar year 2012. Cotton was the biggest import amongst T&C items, with a share of USD 0.77 billion followed by impregnated textile fabric (USD 0.74 billion) and Man-made Filaments with a share of USD 0.73 billion. The imports have increased by 5.26% during the calendar year 2012 in dollar terms over the corresponding period in calendar year 2011. Import data is at Annex-III.

8.

Export Promotion Measures

The Government has been continually supporting the textiles exports sector through various provisions of the Foreign Trade Policy and the other policy initiatives to enable the sector to increase market share in the global textiles markets. 9. Slowdown in exports of the textile sector and policy measures taken

As per latest exports figures (Principal Commodities) released by the DGC&IS, textiles & clothing worth USD 26.82 billion was exported during 2010-11 and USD 33.31billion during 2011-12. During 2012-13, exports of textiles & clothing were of the order

of USD 31.71 billion as against USD 33.31 billon in 2011-12, recording a negative growth 4.82%. The volatility in the EU market during the calendar year 2012 affected severely Indias T&C exports to EU. The EU textiles market witnessed a negative growth of 13% during the calendar year 2012, resulting in a 1.3 billion shortfall of Indias T&C exports to EU during the Calendar year 2012 over 2011. EU T&C import data is at Annex-IV. Policy realignment for apparel sector urgently required duty drawback/ incentives under FTP/ duty reduction in fabric/ yarn imports. MSP sales plan needs to be put in place, CITM has held 2 rounds of discussions. TUFS committed liabilities crowding out new sanctions. At the Processing Stage there is a need to provide the technical and financial assistance to processing units that will enable industry to meet environment sustainability objectives without making themselves uncompetitive in the international market. At the Apparel Stage aamendment to Labour Laws is urgent, to permit longer hours of overtime with due compensation, and to allow flexi-hiring of labour, ie according to variations in orders. Presidential Assent to the Karnataka Bill should be persued. There is a need to adopt the IT model of development of infrastructure of workers housing and workers dormitories along with work spaces, to enable expansion of scale. Encourage and also support innovative start-up models like hiring of built up work space for a-move-in-and-begin strategy that does not require investment up front. The textiles sector in India is keenly looking forward to the finalisation of the IndiaEU BTIA, which would considerably open up trade in textiles sector with EU countries. A very favourable stance has been taken by the Ministry of Textiles with regard to textiles trade with Europe in terms of the broad based agreement with EU. 10. Export Promotion Measures

The Government has been continually supporting the textiles exports sector through various policy initiatives to enable the sector to increase market share in the global textiles markets. Government has introduced several export promotion measures in the Union Budget 2012-13 as well as through schemes of Foreign Trade Policy 2009-14, including incentives under Focus Market Scheme and Focus Product Scheme; enhancing the coverage of Market Linked Focus Product Scheme for textile products and extension of Market Linked Focus Product Scheme etc to increase Indias share in various countries. To ease the resultant financial distress, recognizing the Handloom sector as the most vulnerable segment of the Textile industry, Government has announced a Handloom Revival, Reform & Restructuring Package under which Rs.3884 crore was allocated for waiver of loans of handloom cooperatives, individual weavers, etc. and for interest subsidy, margin money and credit guarantee for fresh loans. Government also approved a debt restructuring package to help loss making textile mills, to be administered on a case by case basis by the banks within the prudential norms of the Reserve Bank of India. The recent measures taken by the Government to support the textiles exports sector are as under:

i)

2% Interest Subvention Scheme on rupee export credit is available to certain specific export sectors. These are (i) Handicrafts, (ii) Carpets, (iii) Handloom, (iv) Readymade Garments, (v) Processed Agriculture Products, (vi) Sports Goods and (vii) Toys. In addition Small and Medium Enterprises (SME) in all sectors enjoy this benefit. Currently the scheme ends on 31st March, 2013. Now this scheme of 2% interest subvention to these specific sectors will be extended by one more year, i.e., up to 31st March, 2014. Introduction of a new scheme to incentivize incremental exports in certain sectors and to certain markets (incremental export performance for the last quarter of the year, i.e. for Jan-March 2013 as compared to exports made by the same IEC holder in Jan-March 2012 would be eligible for such incentives); and Five new countries have been added under the Focus Market Scheme while Eritrea has been added under the Special Focus Market Scheme. The five countries being added under FMS are New Zealand, Cayman Islands, Latvia, Lithuania and Bulgaria. Under FMS Duty Credit of 3 per cent is given on the FoB value of exports while under the Duty Credit is 4 per cent. Sixty new products which include Engineering, Rubber, Textiles, Drugs & Pharmaceuticals products among others, and three countries (Taiwan, Thailand and Czech Republic) have been incorporated under the Market Linked Focus Product Scheme. Under the Focus Product Scheme, more than 100 new products have been added from sectors including Engineering, Textiles, Chemicals, Drugs, Pharmaceuticals, Paper, Books, Publication and Printed Material. The products will be benefitted by 2 per cent Duty Credit. Further, the scrips issued under different schemes namely FPS, FMS, VKGUY, SHIS, MLFPS, SFIS, AIIS, for import of goods, will now be permitted to be utilised for payment of Excise Duty for domestic procurement, to encourage manufacturing, value addition and employment. Support to T&C industry under Union Budget 2013-14 The Highlights of Union Budget 2013-14 in respect of Textiles Sector are as under:

ii)

iii)

11.

Technology Up gradation Fund Scheme (TUFS) to continue in 12th Plan with an investment target of Rs. 1,51,000 crore. The major focus would be on modernisation of the powrloom sector. It is proposed to provide Rs. 2,400 crore in 2013-14 for the purpose. Allocation of Rs. 50 crore to Ministry of Textile to incentivise setting up Apparel Parks within the SITPs to house apparel manufacturing units with an additional grant of upto Rs.10 crore to each Park. A new scheme with an outlay of Rs. 500 crore called the Integrated Processing Development Scheme has been proposed to be implemented in the 12th Plan to address the environmental concerns of the textile industry, including improving the effluent treatment infrastructure. It is proposed to provide Rs. 50 crore in 2013-14 for the scheme. It has been accepted that the handloom sector which subsumes a large proportion of women and belongs mainly to the backward classes is in distress. It is proposed to accept their demand for working capital and term loans at a concessional interest of 6 percent. 150,000 individual weavers and 1,800 primary cooperative societies will benefit in 2013-14

with this inisiative. It is proposed to allocate an additional sum of Rs.96 crore in 2013-14 to the Ministry of Textiles for interest subvention. Khadi, village industries and coir were taken up for development during the 11th Plan under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI). The 12th Plan has provided an outlay of Rs. 850 crore. It is proposed to leverage assistance from Multilateral Development Banks to extend SFURTI to 800 clusters during the 12th Plan. 400,000 artisans are expected to be benefited. However the scheme is being implemented by MSME. Custom Duty (Chapter 50 to 63): 50.1 The BCD on raw silk is being increased from 5% to 15% a measure of protection to domestic sericulture. Chapter 53: 53.1 Presently, coir yarn (53.08) is mentioned at S.No. 43 of notification No. 27/2011Customs. In column (4), which is presently blank, the entry Nil has been inserted as a technical rectification. Chapter 54-63: No change. Excise Duty: Chapter 57: 57.1 All handmade carpets and carpets & other textile floor coverings of coir and jute, whether or not handmade, falling under Chapter 57, are being fully exempted from excise duty. In this connection, notification No. 12/2012-CE, dated 1st March, 2011 and S.No. 37 of notification No. 2/2011-CE, dated 1st March, 2011 are being omitted. Chapter 58-60: No change. Chapter 61-63: 61.1 It has been accepted that the readymade garment industry is in the throes of a crisis and needs a lifeline. There was a demand to restore the zero excise duty route for cotton and manmade sector (spun yarn) at the yarn, fabric and garment stages. Zero excise duty route, as existed prior to Budget 2011-12, has been restored on readymade garments and made ups. The zero excise duty route will now be available in addition to the CENVAT route under which manufactures can pay excise duty on the final product and avail of credit of duty paid on inputs. S.No. 16 of notification No. 30/2004-CE dated the 9th July, 2004 as amended by notification No. 11/2013-CE dated the 1st March, 2013 and S.No. 7 of notification No. 7/2012-CE dated 17th March, 2012, as amended by notification No. 8/2013-CE dated the 1st March, 2013 may be referred to for details. 12. Highlights concerning Textiles Sector with regard SUPPLEMENT 2013-14 to FTP announced on 18.04.2013) to the ANNUAL

(a)

Zero Duty Export Promotion Capital Goods (EPCG) Scheme

FTP has two variants under this scheme, namely, Zero Duty EPCG for few sectors and 3% Duty EPCG for all sectors. During the last announcement on 5th June, 2012, a new Post Export EPCG Scheme was announced and was notified on 18 February, 2013 by the CBEC. Now it has been decided to harmonize Zero Duty EPCG and 3% EPCG Scheme into one scheme which will be a Zero Duty EPCG Scheme covering all sectors. Authorization holders will have export obligation of 6 times the duty saved amount. The export obligation has to be completed in a period of 6 years. The period for import under the Scheme would be 18 months. Export obligation discharge by export of alternate products as well as accounting of exports of group companies will not be allowed. The exporters who have availed benefits under Technology Upgradation Fund Scheme (TUFS) administered by Ministry of Textiles, can also avail the benefit of Zero duty EPCG Scheme. (b) Interest Subvention Scheme

At present, 2% interest subvention scheme is available to certain specific sectors like Handicrafts, Handlooms, Carpets, Readymade Garments, Processed Agricultural Products, Sports Goods and Toys. The benefit of this scheme of 2% interest subvention has been extended upto 31.03.2014. Items covered under Chapter 63 of ITC (HS) (other made up textile articles, sets, rags) have been included under the scheme to widen its coverage. The extended sectors would be able to avail benefit under this scheme during the period from 01.05.2013 to 31.03.2014. (c) Utilization of Duty Credit Scrip

Holder of the Duty Credit Scrips issued under Focus Market Schemes, Focus Product Scheme and Vishesh Krishi Gramin Udyog Yojana (VKGUY) shall be entitled to avail drawback or CENVAT credit of the service tax debited in the scrips as per Department of Revenue rules. All duty credit scrips issued under Chapter 3 can be utilized for payment of application fee to DGFT for obtaining any authorization under Foreign Trade Policy. This benefit shall be available only to the original duty credit scrip holders. Duty credit scrip can also be paid for payment of composition fee and for payment of value shortfalls in EO under para 4.28 (b) of Hand Book of Procedure Vol. 1.

(d)

Market and Product Diversification

Norway has been added under Focus Market Scheme and Venezuela has been added under Special Focus Market Scheme. Approximately, 126 new products have been added under Focus Product Scheme including some products for textiles sector. Brunei and Yemen have been added as new markets under MLFPS. Approximately, 126 new products have been added under Focus Product Scheme including some products for textiles sector. MLFPS is being extended from 01.04.2013 to 31.03.2014 for exports to USA and EU in respect of items falling in Chapter 61 and Chapter 62 of ITC(HS). The town of Gurgaon (Haryana) has been added to the existing list of towns of export excellence for apparel exports. (e) Incremental Exports Incentivisation Scheme

Incremental Export Incentivisation Scheme was announced on 26.12.12 for the exports made during January 2013 to March 2013. This scheme is available for exports made to USA, EU and Asia. This scheme has now been extended for the year 2013-14. Fifty three countries of Latin America and Africa have been added with the objective to increase Indias share in these markets.

(f)

Second Task Force on Transaction Cost in International Trade

The report on Transaction Cost was released in Feb 2011. Implementation of its recommendation has resulted into estimated reduction of transaction cost of approximately Rs 2495 Crores. Second Task Force on Transaction Costs has been constituted. The Committee would submit its report in six months. (g) Widening of items eligible for import for Handloom/Made ups

Five additional items (embroidery/sewing threads/poly/quilted bedding materials and printed bags) have been included in the list of items which are allowed duty free within the existing limits upto 5% FOB value of exports of handloom made ups in preceding year or within the existing limit of upto 1% of FOB value of exports of cotton/man-made ups in preceding year. (h) Ease of Documentation and procedural simplification

Submission of physical copies of IEC and Registration-cum-Membership Certificate (RCMC) with individual application has been dispensed with. It has been decided to dispense with submission of hard copy of EP copy of shipping bills in case of (a) advance authorization, (b) duty free import authorization for grant of Export Obligation Discharge Certificate (EODC) if exports are made through EDI ports.

(i)

Electronic Data Interchange Initiatives

e-BRC system allows Transmission of realization of export proceeds details from banks to DGFT in electronically secured format. The system will lead to substantial reduction of transaction cost and time. 10. New developments / initiatives in the T&C Sector

Ministry of Textiles has signed various Memorandum of Understandings with Foreign Governments for Textiles and Clothing sector collaboration. The progress of the MoU in place is as under: Mauritius: A memorandum of understanding (MOU) for strengthening collaboration in textiles sector was signed between the two Governments on February 7, 2012 during the state visit of the Prime Minister of Mauritius to India. Under the MOU, a Joint committee on T&C sector was constituted between both the countries. The Joint Committee has held 2 rounds of meetings on July 23, 2012 in New Delhi and January 28, 2013 in Port Louis, Mauritius. The 2nd Joint Committee discussions on 28th January, 2013 were cordial and constructive and both Parties reiterated that India-Mauritius relations were based on brotherhood and mutual trust.

A framework of implementation of the announcements made by the Commerce, Industry and Textiles Minister of India during his visit to Mauritius on January 8-10. 2013 has been formulated and reflected in a letter of intent signed between the 2 countries. India would offer training to 1000 textiles workers, 35 scholarship programs and develop 10 fully compliant apparel factories. The Joint Committee successfully developed five MOUs between Institutions of both countries for deepening textiles sector collaboration. Uzbekistan: An MoU was signed on 18th May, 2011 by the Minister of Commerce, Industry and Textiles during the visit of President Islam Karimov to New Delhi for cooperation in the field of Textiles, Clothing and Fashion industries. As per article 7 of the MoU, an Indian delegation led by JS (Exp) visited Tashkent from May 23-25, 2012 for the 1st meeting of the Joint Working Group constituted under the bilateral MOU. The 1st meeting of the Joint Working Group on May 25, 2012 reached consensus on the following issues: (a) 3 collaborative to be developed in silk sector (b) in Cotton sector, sharing of information and to develop contract enforcement mechanisms; (c) collaboration between Research institutions SITRA and Uzbekistan Research Institute of Natural Fibres. Subsequently, a textiles team from Uzbekistan visited India during Tex-Trends - July, 2012 where they exhibited their organisations products in a stall in the main exhibition area. A copy of the Protocol of the 1 st JWG meeting is at Annex-VIII. A follow up visit was undertaken by Director (Cotton), Ministry of Textiles to participate in 8th International Uzbek Cotton and Textile Fair (17-18th October, 2012) and to discuss Cotton / Silk related issues. The 2nd Meeting of the JWG was held in New Delhi on 21 st February, 2013. . It was decided that Central Silk Board (CSB) and the Uzbek Research Institute would jointly formulate research projects in the areas of silkworm & mulberry breeding, pest and nutrient management, silkworm seed technology, and cocoon & yarn processing technology. Collaborative project on plantation development, disease management and seed production would be taken up. Both sides agreed on collaboration in the sharing of market information, price forecasts and trends in Cotton trade. For exchange of information, it was agreed that the Chairman Cotton Corporation of India and the Representative of the State Joint Stock Foreign Trade Company would be communicating with each other on a regular basis. Kazakhstan: A JWG in textiles sector cooperation was formed between both the countries in 2008. The 3rd meeting of the JWG was held in India on 7th June, 2012. The two sides agreed to press forward on areas of mutual interest and concern as well as mutual assistance and cooperation in the field of textiles and clothing and particularly in Wool, Cotton and MMF sectors. The issue of training to Kazakhstan nationals in various levels of textiles and clothing manufacturing was also discussed during the JWG meeting. The next round of JWG will be held in Shymkent in 2013. Tajikistan: The MoU between MoT and the Ministry of Energy and Industry of the Republic of Tajikistan was among the MoUs signed with Tajikistan during the VVIP visit during September, 2012. To take forward the initiative, we had addressed the Ambassador, Embassy of Tajikistan, New Delhi in November, 2012 for seeking consideration of holding the first meeting of the JWG in New Delhi in January 2013, on mutually convenient dates. The reply of Tajik side is awaited. Israel: A Letter of Intent was signed by Secretary (Textiles) and DG of the Israeli Ministry of Trade, Industry and Labor (MOITAL) on 5th September, 2012 in Tel Aviv to collaborate in Indias manufacturing sector industry to address the challenging situation of pollution in the

textiles sector. The President of Shenkar Design Academy made a follow up visit to the Embassy of Israel, New Delhi with various proposals for collaboration in the field of fashion designing and academic exchanges and training programmes. DG, NIFT has been requested to plan out a specific programme for collaboration between NIFT and Shenkar Academy to finalise the programme during the Shenker Academy delegations upcoming visit to New Delhi. The Integrated Processing Development Scheme has been proposed to be implemented in the 12th Plan to address the environmental concerns of the textile industry, including improving the effluent treatment infrastructure. It is proposed to provide Rs. 50 crore in 2013-14 for the scheme. The Scheme is expected to be operational by July, 2013 Australia: An MoU was signed between India represented by Ministry of Textiles and the Australian Government represented by the Department of Agriculture, Fisheries and Forestery on 17th October, 2012. The MoU seeks establishing of a Joint Working Group which would interact periodically, as incorporated in the MoU. The MoU proposed that the Co-Chairs of the JWG would be at the level of Joint Secretary (India) and Assistant Secretary (Australia) or their delegates and include members representing the various bodies/organizations which would interact with their appropriate counterparts and become vehicles of implementation so as to leverage maximum benefits out of the enhance cooperation with Australia in this Sector. The inaugural meeting of the AustraliaIndia Joint Working Group (JWG) on Cooperation in the Field of Wool and Woollen Products was held on 22 February 2013 in Melbourne, Australia. The meeting dialogue focused on identifying areas of mutual benefit and cooperation in wool trade and production. The Indian delegation stated that they were looking for collaboration and knowledge sharing in sheep development and genetics as a means to improve their livestock health and wool production. At the conclusion of the discussions both sides worked to create a list of four elements for collaboration/cooperation which are to be used in developing an action plan to be agreed on through email within six weeks. The four elements were wool promotion, supply chain sourcing, technical and knowledge transfer and improving sheep production in India. MOUs are under discussions with: Bangladesh Draft approved by the Cabinet. Sri Lanka - Draft finalized Romania signed on 23rd April, 2013 Belarus under consideration

The factory level training programme under the Driving Industry towards Sustainable Human Capital Advancement (DISHA) Project has been drawn up through Apparel Export Promotion Council. Technical experts with proven expertise to work with each participating unit has already been engaged and the programme cost for each manufacturing unit would be Rs.25,000/. All remaining costs upto Rs.1.80 lakh per unit would be borne by the Central Government. The scheme requires support of Department of Labour in the States for implementation and enhancing collaboration with the manufacturing units in the State.

Annex-I
India's textiles exports at a glance (Principal Commodities) Prepared by IT Section on 02.05.2013
Item ` Crore Readymade Garment RMG of cotton incl. accessories RMG of Man-made fibre RMG of other textile material Cotton Textiles Cotton raw including waste Cotton yarn, fabrics & madeups Man-made textiles Manmade staple fibres Manmade yarn, fab. & madeups Wool & Woolen textiles RMG of Wool Woollen yarn, fabrics &madeups Silk RMG of Silk Natural silk yarn, fab. & madeups Silk waste Handloom Products* Textiles (excl HC, jute & coir) Handicrafts Handicrafts (excluding handmade carpets) Carpets (excluding silk) handmade Silk carpets Coir & Coir Manufacturers Coir & Coir Manufacturers Jute Floor covering of jute Other jute manufactures Jute yarn Jute hessian Textiles (incl. HC, coir & jute) % Textile Exports India's overall exports 47608.39 38070.33 5745.29 3792.77 27016.21 9537.08 17479.13 18783.13 1690.68 17092.45 2224.14 1799.20 424.94 2819.46 1383.42 1411.12 24.92 1252.81 99704.14 4548.91 1066.58 3441.74 40.59 759.66 759.66 1033.09 281.07 300.19 144.20 307.63 106045.80 12.54% 845533.64 2009-10 US$ Mn 10064.73 8048.32 1214.59 801.82 5711.41 2016.20 3695.20 3970.88 357.42 3613.46 470.20 380.36 89.84 596.05 292.46 298.32 5.27 264.85 21078.12 961.67 225.48 727.61 8.58 160.60 160.60 218.40 59.42 63.46 30.48 65.04 22418.79 12.54% 178751.43 ` Crore 50180.69 39032.14 6729.19 4419.36 39521.31 13160.47 26360.84 21410.56 1920.18 19490.38 2012.13 1510.93 501.20 2874.13 1169.26 1660.80 44.07 1574.95 117573.77 5888.85 1170.51 4706.65 11.69 726.49 726.49 2092.07 337.83 499.56 531.81 722.87 126281.18 11.05% 1142921.92 2010-11 US$ Mn 11026.29 8576.60 1478.62 971.07 8684.09 2891.77 5792.31 4704.58 421.92 4282.65 442.13 332.00 110.13 631.54 256.92 364.93 9.68 346.07 25834.69 1293.97 257.20 1034.20 2.57 159.63 159.63 459.69 74.23 109.77 116.86 158.84 27747.98 11.05% 251136.19 2011-12(P) ` Crore 62625.15 46117.11 10429.49 6078.55 54234.89 21623.06 32611.83 26974.14 2711.31 24262.83 2434.16 1707.92 726.24 2265.87 1267.08 949.02 49.77 2653.95 151188.16 5170.98 1118.94 4032.83 19.21 1020.62 1020.62 2190.79 251.80 736.46 282.01 920.52 159570.55 10.93% 1459280.51 US$ Mn 13072.95 9626.91 2177.15 1268.89 11321.49 4513.79 6807.69 5630.83 565.98 5064.84 508.13 356.53 151.60 473.00 264.50 198.11 10.39 554.01 31560.40 1079.44 233.58 841.85 4.01 213.05 213.05 457.33 52.56 153.74 58.87 192.16 33310.21 10.93% 304623.53 27.68% 21.30% ` 24.80% 18.15% 54.99% 37.54% 37.23% 64.30% 23.71% 25.99% 41.20% 24.49% 20.97% 13.04% 44.90% -21.16% 8.37% -42.86% 12.93% 68.51% 28.59% -12.19% -4.41% -14.32% 64.33% 40.49% 40.49% 4.72% -25.47% 47.42% -46.97% 27.34% 26.36% Variation US$ 18.56% 12.25% 47.24% 30.67% 30.37% 56.09% 17.53% 19.69% 34.14% 18.26% 14.93% 7.39% 37.66% -25.10% 2.95% -45.71% 7.29% 60.09% 22.16% -16.58% -9.18% -18.60% 56.12% 33.46% 33.46% -0.52% -29.19% 40.05% -49.62% 20.98% 20.05% 2012-13(P) ` Crore 67412.82 45822.24 13638.95 7951.63 60710.80 19812.85 40897.95 27435.43 2759.50 24675.93 2276.46 1617.43 659.03 2210.18 1297.91 849.36 62.91 2819.91 162865.60 6450.77 1089.10 5340.77 20.90 1071.74 1071.74 2106.60 284.26 732.72 221.16 868.46 172494.71 10.55% 1634672.95 US$ Mn 12390.87 8422.39 2506.92 1461.56 11159.00 3641.72 7517.28 5042.79 507.21 4535.58 418.43 297.29 121.13 406.24 238.56 156.12 11.56 518.32 29935.64 1185.69 200.18 981.66 3.84 196.99 196.99 387.21 52.25 134.68 40.65 159.63 31705.53 10.55% 300462.38 12.02% -1.37% ` 7.64% -0.64% 30.77% 30.81% 11.94% -8.37% 25.41% 1.71% 1.78% 1.70% -6.48% -5.30% -9.25% -2.46% 2.43% -10.50% 26.40% 6.25% 7.72% 24.75% -2.67% 32.43% 8.80% 5.01% 5.01% -3.84% 12.89% -0.51% -21.58% -5.66% 8.10% Variation US$ -5.22% -12.51% 15.15% 15.18% -1.44% -19.32% 10.42% -10.44% -10.38% -10.45% -17.65% -16.61% -20.10% -14.11% -9.81% -21.20% 11.30% -6.44% -5.15% 9.84% -14.30% 16.61% -4.20% -7.54% -7.54% -15.33% -0.60% -12.40% -30.95% -16.93% -4.82%

Source : Foreign Trade Statistics of India( Principal Commodities & Countries), DGCI&S for export figures in Rupee and Department of Commerce(Intranet) -Exchange rate *Handloom Products have been included as commodities first time in 2009-10

Annex-II
India Export Statistics Commodity: Textile & Clothing, Ch50 to 63 Annual Series: 2007 - 2011, Year To Date: 12/2011 & 12/2012 Millions United States Dollars Calendar Year Partner Country 2010 2011 2012 World United States China United Arab Emirates United Kingdom Germany Bangladesh Italy France Spain Turkey Netherlands Belgium Brazil Saudi Arabia Sri Lanka Egypt Canada Japan Denmark Pakistan 27188 4946 2325 1798 1667 1528 1105 778 810 667 667 523 474 497 473 397 338 347 261 281 657 32642 5779 2928 2162 2087 1959 1101 1030 1017 814 731 728 615 557 540 502 492 431 397 381 381 32845 5994 3907 2172 2080 1567 1659 774 823 732 659 626 477 544 547 483 493 402 402 308 410

%Change 0.62 3.73 33.47 0.46 -0.36 -20.02 50.74 -24.84 -19.11 -10.01 -9.89 -14 -22.52 -2.34 1.33 -3.81 0.21 -6.82 1.29 -19.27 7.56

Annex-III
India Import Statistics From World Commodity: Textile & Clothing, Ch50 to 63 Annual Series: 2007 - 2011, Year To Date: 12/2011 & 12/2012 Millions United States Dollars Calendar Year Commodity Textile & Clothing 54 59 55 52 51 50 60 63 53 62 56 58 61 57 Description 2007 3042 440 438 229 518 327 397 130 108 114 69 94 94 34 51 2008 3676 548 543 285 719 325 374 155 225 101 90 102 103 53 56 2009 3153 528 483 288 422 220 394 154 195 124 64 91 99 44 47 2010 3922 627 608 371 459 344 373 227 268 163 102 134 105 75 66 2011 4956 784 749 548 475 433 350 343 343 273 166 162 129 118 83 2012 5217 734 736 498 770 399 325 368 408 274 202 172 142 115 72 % Change 5.26 -6.33 -1.65 -9.12 61.96 -7.72 -6.99 7.27 19 0.38 21.63 6.53 10.15 -2.73 -13.73

Ch50 to 63 Manmade Filaments, Including Yarns & Woven Fabrics Impregnated Etc Text Fabrics; Tex Art For Industry Manmade Staple Fibers, Incl Yarns & Woven Fabrics Cotton, Including Yarn And Woven Fabric Thereof Wool & Animal Hair, Including Yarn & Woven Fabric Silk, Including Yarns And Woven Fabric Thereof Knitted Or Crocheted Fabrics Textile Art Nesoi; Needlecraft Sets; Worn Text Art Veg Text Fib Nesoi; Veg Fib & Paper Yns & Wov Fab Apparel Articles And Accessories, Not Knit Etc. Wadding, Felt Etc; Sp Yarn; Twine, Ropes Etc. Spec Wov Fabrics; Tufted Fab; Lace; Tapestries Etc Apparel Articles And Accessories, Knit Or Crochet Carpets And Other Textile Floor Coverings

Source of Data: Ministry of Commerce

Annex-IV
EU27 (External Trade) Import Statistics From World Commodity: Textile & Clothing, Ch50 to 63 Annual Series: 2007 - 2011, Year To Date: 12/2011 & 12/2012 Millions United States Dollars Calendar Year Commodity Textile & Clothing 62 61 63 52 54 55 51 57 59 56 60 58 50 53 Description 2007 110132 41698 37868 8842 4565 3826 3407 2119 1825 1304 1409 1249 998 541 479 2008 118407 45439 41973 9559 4367 3734 3306 2044 1817 1464 1500 1196 964 585 460 2009 104659 40969 39074 8591 3272 2680 2487 1182 1519 1140 1202 1096 784 345 318 2010 112377 41627 41242 9572 4165 3393 3074 1693 1646 1406 1505 1355 850 424 424 2011 130940 48296 47047 11095 5330 4249 3871 2409 1823 1643 1634 1556 932 559 496 2012 113871 42449 41176 9443 3783 3877 3198 1934 1611 1518 1567 1506 885 483 441 % Change -13.04 -12.11 -12.48 -14.9 -29.03 -8.76 -17.39 -19.72 -11.64 -7.57 -4.1 -3.21 -5.06 -13.47 -11.16

Ch50 to 63 Apparel Articles And Accessories, Not Knit Etc. Apparel Articles And Accessories, Knit Or Crochet Textile Art Nesoi; Needlecraft Sets; Worn Text Art Cotton, Including Yarn And Woven Fabric Thereof Manmade Filaments, Including Yarns & Woven Fabrics Manmade Staple Fibers, Incl Yarns & Woven Fabrics Wool & Animal Hair, Including Yarn & Woven Fabric Carpets And Other Textile Floor Coverings Impregnated Etc Text Fabrics; Tex Art For Industry Wadding, Felt Etc; Sp Yarn; Twine, Ropes Etc. Knitted Or Crocheted Fabrics Spec Wov Fabrics; Tufted Fab; Lace; Tapestries Etc Silk, Including Yarns And Woven Fabric Thereof Veg Text Fib Nesoi; Veg Fib & Paper Yns & Wov Fab

Source of Data: Eurostat

(Data Source: Intl. Trade Section, Website updated on 20-05-2013)