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According to latest WTOdata (2009), India’s share in the world merchandise exports increased from 0.8 percent in 2004 to 1.1 percent in 2008
INTRODUCTION
During 2008-09(Apr-Sept) exports grew by 48.1per cent with almost all the major commodity groups, except marine products, handicrafts recording significant growth. In the second half of the year2008-09 (Oct-Mar), exports declined by (-) 14.7per cent with almost all the major commoditygroups, except Gems & Jewellery, RMG,Electronics goods, recording significant negative growth.Commodities like Engineering Goods,Other basic Chemicals, Man-made Yarn,Leather & Leather Manufactures, and Spices
Cumulative imports during 2008-09 was US $303.7 billion as against US $ 251.6 billionduring the corresponding period of the previousyear registering a growth of 20.7 per cent in $terms. Oil imports were valued at US $ 93.7billion which was 17.4 per cent higher than oilimports valued US $ 79.8 billion in thecorresponding period of previous year. Non-oilimports valued US $ 210.0 billion which was22.2 per cent higher than non-oil imports of US$ 171.8 billion in previous year
2003-2004 293367 15.0% 359108 20.8% -65741
2004-2005 375340 27.9% 501065 39.5 % -125725
2005-2006 456418 21.6% 660409 31.8 % -203991
2006-2007 571779 25.3% 840506 27.3 % -268727
2007-2008 655864 14.7% 1012312 20.4 % -356448
2008-2009 766935 16.9% 1305503 29.0 % -538568
Foreign Trade Policy, Foreign Trade Policy, 2009-142009-14
The Foreign Trade Policy (FTP) 2009-14 was announced on 27th August, 2009 in thebackdrop of a fall in India’s exports due to global slowdown. The Policy envisaged annual export growth of 15 per cent with anannual export target of US$ 200 billion by March 2011 export growth path of around 25 per cent per annum in the remaining three years of this Foreign TradePolicy i.e. up to 2014.
GROWTH DURING THE 2009- GROWTH DURING THE 2009- 2010 2010
Ores and MineralsGems and JewelleryLeather and Leather Manufactures
Chemicals and Related ProductsEngineering GoodsTextilesHandicrafts and CarpetsElectronic Goods &Petroleum Products etc.
India’s apparel tradeIndia’s apparel trade
Domestic trade - TrendsDomestic trade - Trends
Men’s wear has the majority share of
Apparel market currently (43%).
However, women’s wear is growing at a
higher rate of 12%compared to men’s (9%),
boys’ wear (10%) and girls’ wear (11%).
Due to high growth, women’s wear share is
expected to reach 43% in 2020 from the
current 37% share.
Cont..Cont..
High growth categories include Women’s
casual wear, Innerwear, Active wear, Kids
wear, Women’s Western wear, Lingerie,
Technical Textiles and Home Textiles.
Market sizeMarket size
Men’s wear marketMen’s wear market
Women’s wear marketWomen’s wear market
Apparel export – Trends Apparel export – Trends
Apparel exports has reached at USD 3581 million
in the first three months of financial year 2011-
12 with a growth rate of 34.47 per cent against
the corresponding period last year.
In June 2011 exports have increased by 42.09 per
cent against the corresponding period last year.
In rupee terms, the exports have increased by
36.86 per cent in June 2011-12 over the same
month of previous FY.
Comparison Comparison
Top ten apparel export commodities of India (2010-2011)
S.No. HSCode Commodity
1 610910 T-SHIRTS ETC OF COTTON
2 620630 BLOUSES,SHIRTS & SHIRTS-BLOUSES OF COTTON
3 620520 MEN'S OR BOYS' SHIRTS OF COTTON
4 620442 DRESSES OF COTTON
5 620342TROUSERS BIB & BRACE OVERALLS BREECHES & SHORTS OF COTTON FOR MEN'S & BOYS'
6 611120 BABIES'GARMENTS ETC OF COTTON
7 610510 MEN'S/BOYS' SHIRTS OF COTTON
8 621490 SHWLS,SCRVS ETC OF OTHER TXTL MATERIALS
9 620462TROUSERS,BIB AND BRACE OVERALLS, BREECHES AND SHORTS OF COTTON
10 610990 T-SHIRT ETC OF OTHER TEXTILE MATERIALS
Export stat
WATCHESWATCHES
INDUSTRY OVERVIEWINDUSTRY OVERVIEW Indian watch market is an underpenetrated market.
Investment required is low(3-5cr)
Market has been split into
-low end
-medium market
-high end
MARKET SIZEMARKET SIZE40-45 million pieces are produced annually
30% organized and 70% unorganized
Comes to around USD 195 million
Average growth size – 10-15%
Set to touch the Rs. 8500 Crore mark.
MAJOR PLAYERSMAJOR PLAYERS(INDIAN MARKET)(INDIAN MARKET)
HMT
TITAN
SONATA
AJANTA
TIMEX
S.W.O.T ANALYSISS.W.O.T ANALYSISSTRENGTHS
-Industry is growing at a rate of 30% every year
-Increasing population
-Customers are not very price sensitive
WEAKNESSES
-Not much advertising is done
-no product innovation
-few numbers of exclusive showrooms
OPPORTUNITIES
-young and the individual are the trend setters
-market is huge in India
-day by day its becoming a fashion accessory
-youth of India is far more brand conscious
THREATS -Many large players are entering the market
-too many players will dilute the profit margin
-mobiles phones acting as a substitute for watches
TRADE DATATRADE DATA(INTERNATIONAL SCENARIO)(INTERNATIONAL SCENARIO)
Total world production of watches is 828 million pieces.
Major watch manufacturing countries-Switzerland , Japan, Hong Kong
Important market for watches-Hong Kong, Western Europe, USA, Middle East Count
IN INDIAIN INDIA
Top five companies produce between 1.2 to 3.75 million pieces.
Production centres include Delhi, Bombay, Surendra Nagar, Surat, Baroda and Junagadh
CONCLUSIONCONCLUSION Indian market is still considered a difficult one to penetrate.
Industry has a lot of potential to grow.
Watch manufacturers need to expand their capacity
Process automation should be increased
Development of standards
Consumer acceptability of Indian made products is low.
Low price watches can be exported to countries with a significant Indian population.
LEATHERLEATHER
SOURCE:
•BUCKSKIN •SUEDE•CALF SKIN • COW HIDE •PIG SKIN • LIZARD SKIN•OSTRICH SKIN
BENEFITS:
•VERSATILE
•INSULATION CHARACTERISTICS
•SERVICE AND DURABILITY
USESUSESLEATHER GARMENTS
GLOVES, JACKETS , COAT , BLAZER
FOOTWEAR SANDALS
CASUAL SHOES, FASHION SHOES,FORMAL FOORWEAR, GUMBOOTS
LEATHER GOODS & ACCESSORIES
COVERS,FILES,FOLDERS, HANDICRAFTS, TRAY
EQUESTRIAN PRODUCTS
DOG COLLORS,SADDLES, HARNESS SET, HORSE BRIDLE,HALTERS & CLOTHING
LEATHER BAGS & HANDBAGS BOXES,WALLETS ,
PURSES, POUCHES
LEATHER CRAFT SUPPLIES
BANDS, BEAD, BRAIDS, CORDS,FRINGES, WATCH STRAP
FASHION BELTS,FORMAL BELTS
STATIONARY ITEMS
CARD HOLDERS,DIARIES, ENVELOPES,JOURNALS, NOTEBOOKS, ORGANIZERS
LEATHER INDUSTRY IN INDIALEATHER INDUSTRY IN INDIAThe leather industrial sector comprises of: a) Tanneriesb) Factories
Some features of Indian leather industry
• India has the largest livestock holding.• The Indian leather sector meets 10% of global finished leather requirement. •About 2.50 million workforce (30% women) •Has an annual turnover of approximately US$ 5 million•Annual production value is over U$ 4 billion •Annual export value is over U$ 2 billion • Today the industry ranks 8th in the export trade in terms of foreign exchange earnings of the country;
Major centers for production - Tamil Nadu, West Bengal, U.P, Jalandhar
Leather Garments
• Production capacity is estimated to be 16 million pieces/annum
•Jackets, long coats, waist coats/shirts, pant/shorts, motorbike jackets
•India is the second largest producer of leather garments
•India’s is the third largest global supplier of leather garments
•Major markets - USA, Germany, France, Italy, Spain, UK, Japan, Netherlands, Hong Kong, Switzerland, Belgium, Canada, Austria, Denmark, Russia, Greece, Sweden and Portugal.
•Major brands - Pierre Cardin, Tommy Hilfiger, Versace, DKNY, Hugo boss, Liz Claiborne, Ann Taylor, Nautica, Kenneth Cole, Charter Club, Daniel Hector
Leather Goods & Accessories •Production is 63 million pieces/ annum
• Trunks, suit-cases, vanity-cases, executive-cases, brief–cases, traveling bags / luggage,Hand Bags, Wallets, Purses, Pouches, Passport Holders, Credit Card Holders,Upholstery
•Manufacturing units located in Kolkata, Chennai, Mumbai, Kanpur, Bangalore and Puducherry. •India is the fifth largest exporter of leather goods and accessories in the world.
•India’s share in global leather Goods & Accessories segment was 4.84% in 2010.
•Brands : Coach, Pierre Cardin, Marks & Spencer, Liz Caliborne, Guess, Next, Tommy Hilfiger
Leather Gloves
•India is the fourth largest exporter of Leather Gloves to the world.
•India produces about 52 million pairs of industrial gloves annually.
(Value in Million US$)
DETAILS 2005 2006 2007 2008 2009
Leather Garments
WORLD IMPORT 3840.91 3779.08 3986.18 4142.79 3367.21
INDIA'S EXPORT 333.30 309.91 345.34 426.17 428.62
% SHARE OF INDIA 8.68% 8.20% 8.66% 10.29% 12.73%
Source: ITC, Geneva
(Value In Million US$)
2005 2006 2007 2008 2009
Leather Goods (Including Gloves)
WORLD IMPORT 12281.41 13809.04 16438.80 18091.51 14315.60
INDIA'S EXPORT 660.17 706.29 800.47 873.45 757.02
% SHARE OFINDIA 5.38% 5.11% 4.87% 4.83% 5.29%
Leather Goods and accessories
Leather Garments
Indian Leather Footwear Industry
•India is the world's second largest producer of leather footwear; • Production - 700 million pairs /annum. • Footwear accounts for about 40 percent share of total exports of leather exports. • Dress shoes, casuals, moccasins, sports shoes, horacchis, sandals, ballerina & booties. •Major production centers : Chennai ,Delhi, Agra, Kanpur, Mumbai ,Calcutta .• Market- Europe and USA.
Indian Saddles Industry
•There are over 150 units in the organized sector, out of which approximately. 105 are 100% export oriented units.
•Major production centre – Kanpur
•Markets: Germany, USA, UK, France, Japan, Australia and New Zealand.
% Share of Leather Products in Export Performance (2010-11)
Source - http://www.leatherindia.org/
Value in Million US$
Category
2005-06 2006-07 2007-08 2008-09 2009-10
Finished Leather
381.49 459.25 508.83 555.71 577
Leather Footwear
381.37 395.39 423.30 553.04 601.73
Footwear Components
238.09 233.94 175.07 161.27 163.67
Leather Garments
460.45 378.75 272.08 301.08 318.73
Leather Goods
343.76 321.46 335.36 403.20 568.46
Saddlery & Harness
42.66 35.64 436.6 527.1 59.64
Leather Gloves
96.11 85.69 90.04 136.01 140.4
Non-Leather Footwear
19.11 26.02 26.88 53.42 90.21
Total 1963.55 1936.14 1875.21 2216.45 2379.44
India's Export of Leather & Leather Products – Products wise (2004-05 to 2009-10)
EXPORT TRENDS
Source - http://www.leatherindia.org/
% Share of various countries in India’s Leather & Leather Products Exports (2010-11)
Source - http://www.leatherindia.org/
Country 2005-06 2006-07 2007-08 2008-09 2009-10
USA 342.78 286.89 246.44 251.58 279.7
Germany
307.17 304.46 272.53 329.82 336.69
UK 270.09 248.89 240.96 250.65 299.21
Italy 241.07 263.11 255.92 285.02 242.6
Hong Kong
98.32 121.43 165.70 226.97 236.52
Major Markets for India's Export of Leather Export of Leather Products (2005-06 to 2009-10)
(Value in Million $)
Source: ITC, Geneva
FUTURE FORECAST Opportunity for increased flow of foreign direct investment into India.
Increasing presence of big corporate houses in this industry would help improve the investments required, and thereby the competitiveness in the international markets.
CHALLENGES
•Effluent management•Non-tariff barriers•Quality specifications •Cost of compliance to various standards.
With its rich resource base of raw hides, human capital and the capability to produce niche products, Indian leather industry has the capability to increase its share in global leather trade.
THE INDIANJEWELLERY INDUSTRY
JEWELLERY INDUSTRY:OVERVIEW
The Indian Jewellery industry is well known for its impeccable craftsmanship in which expertise has been gained over the years.The overview of the jewellery industry reveals some important facts about the-Techniques, which is used in the production process.Jewellery statistics to gives an idea about exports and imports during a year. Jewellery trade shows and jewellery institutes to signify the number of existing institutes which provide study regarding jewelleries.
NET IMPORTS OF GEMS & JEWELLERY
ITEMS April-August'09 (Provisional)April-August‘10
(Same ports as current year)% Growth / decline over
previous Year
Rs. In CroresUS $ in Million
Rs. In CroresUS $ in Million
Rs. US $
Rough Diamonds
14860.87 3239.54 16314.25 3722.74 -8.91 -12.98
( Quantity in Lakh Carats)
(627.1857) (627.1857) (731.95) (731.95)
Gold Bar 3226.60 703.37 2950.68 673.41
Others ** 281.36 61.90 294.00 67.05 -4.30 -7.68
Total 18368.83 4004.81 19558.92 4463.20 -6.08 -10.27
Cut & Polished Diamonds
3646.23 791.56 7115.56 -48.76 -50.51
Others *** 829.97 183.09 495.56 113.15 67.48 61.81
Total Imports 22845.03 4979.46 27170.04 6175.88 -15.92 -19.37
Figures for June, July & August 2009 Gold Bar not included from MMTC
NET EXPORTS OF GEMS & JEWELLERY
ITEMS April-August'09 (Provisional)April-August ‘10
(Same ports as current year)% Growth / decline over previous Year
Rs. In Crores US $ in Million Rs. In Crores US $ in Million Rs. US $
Cut & Pol Diamonds *
19033.70 4179.65 21864.76 5030.81 -12.95 -16.92
(Quantity in Lakh Carats)
(140.48) (140.48) (194.28) (194.28)
Gold Jewellery - D. T. A.
5325.01 1170.27 4098.67 943.30 29.92 24.06
SEZ / EPZ / EOU 2914.92 638.76 2011.47 462.70 44.92 38.05
Total 8239.93 1809.03 6110.14 1406.00 34.86 28.67
Coloured Gemstones 414.05 90.07 380.16 87.44 8.92 3.01
Others 297.93 65.26 266.81 61.35 11.40 6.37
Net Exports 27984.91 6144.01 28621.86 6585.60 -2.23 -6.71
Exports of Rough Diamonds
966.29 212.16 1048.59 241.12 -7.85 -12.01
( Quantity in Lakh Carats)
(153.836) (153.836) (150.83) (150.83)
Total Exports 28951.20 6356.17 29670.45 6826.72 -2.42 -6.89
SizeLarge market for Gems & Jewellery with domestic sales
of over $10 billion.4% of the global Gems and Jewellery market .Exports of over $15.5 billion; over 18% of India’s
exports. India is the largest consumer of gold jewellery in the
world.Accounts for about 20% of world consumption. India is the largest diamond cutting and polishing center
in the world.60% value share, 85% volume share and 92% share of the
world market by number of pieces.Third largest consumer of polished diamonds after USA
and Japan.
Indian Exports-Jewellery Market
Relation between the Price Relation between the Price and Demand of Goldand Demand of Gold
StructureThe Indian Gems & Jewellery industry is
highly fragmented with a large number of domestic private sector companies.
A large portion of the market is in the unorganized sector .
India is gaining prominence as an international sourcing destination for high quality designer jewelery .
Walmart, JC Penney etc. procure jewelery from India .
Policy
100% FDI is permitted in the Gems & Jewellery sector through the automatic route.SEZs and Gems and Jewellery Parks have been set up to promote investments in the sector.
OutlookIndia is the fastest-growing jewellery
market in the world.Branded jewellery likely to be the fastest-
growing segment in domestic sales.Expected to grow at 40% p.a. to $2.2
billion by 2010.Exports expected to grow from $15.5
billion in 2005 to over $25 billion by 2010.
PotentialIndia has several well recognized strengths which have made it a significant force in the global Gems and Jewellery business.Highly skilled, yet low-cost labour.Established manufacturing excellence in jewellery and diamond polishing.India is the most technologically advanced diamond cutting centre in the world.Opportunity to address one of the world’s largest and fastest-growing Gems and Jewellery markets.Opportunity to leverage India’s strengths to address the global market.
Jewellery Retail Sector
Reliance Retail has entered the Market with Reliance Jewels. It aims to open between 400 to 500 jewellery retail outlets across the country.
Damas Jewellery, one of the world’s leading jewellery retailer entered India in 2003 with a 50-50 joint venture with Gitanjali Gems Ltd. It is one of the largest jewellery retail outlets in the world and is adding 16 new stores to the 12 stores it currently has in India.
Swarovski, the global crystal goods manufacturer and marketer, plans to set up 30 stores by 2009, up from the current 13.
The Gitanjali Group has bought 'Nakshatra', the premium brand of jewellery promoted by Diamond Trading Company (DTC)
Mumbai-based Vardhaman Developers plans to build four more jewellery malls in the city.
· Dubai-based Joy Alukkas has recently opened its largest showroom in Chennai.
· Viswa and Devji Diamonds, a partnership between the Indian group and the top jewellery retailer in UAE, opened its first diamond retail outlet.
Gold Souk India has plans for opening 100 Souks in 100 months.
Future of the Indian Jewellery Market:
India’s growing importance in the global jewellery market is only expected to increase in the future with total estimated jewellery sales of US$ 37 billion by 2015.
Branded jewellery is likely to be the fastest-growing segment in domestic sales. The sector is expected to grow at 40 per cent annually to touch US$ 2.2 billion by 2011.
Indian diamond jewellery industry is the third largest consumer of polished diamonds after USA and Japan. Diamond jewellery consumption is likely to jump to nearly 80 per cent in 2010 and over 95 per cent between 2010 and 2015.
TRADE STATISTICS OF TRADE STATISTICS OF INDIAN TEXTILESINDIAN TEXTILES
A textile or cloth is a flexible material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands. Textiles are formed by weaving, knitting, crocheting, knotting, or pressing fibres together (felt).
MINISTER OF TEXTILESMINISTER OF TEXTILES
SRI ANAND SHARMA
EXPORTSEXPORTS
India's textiles and clothing industry is one of the mainstays of the national economy.It is also one of the largest contributing sectors of India's exports worldwide. The Vision Statement for the textiles industry for the 11th Five Year Plan (2007-12), inter-alia, envisages India securing a 7% share in the global textiles trade by 2012. At current prices the Indian textiles industry is pegged at US$ 55 billion, 64% of which services domestic demand. The textiles industry accounts for 14% of industrial production, which is 4% of GDP; employs 35 million people and accounts for nearly 12% share of the country's total exportsbasket.
INDIAN TEXTILE EXPORTS IN INDIAN TEXTILE EXPORTS IN THE PAST 4 YEARSTHE PAST 4 YEARS
MILESTONESMILESTONES Exports of textiles and clothing products from India have
increased steadily over the last few years, particularly after 2004 when textiles exports quota were discontinued.
Exports of Textiles and clothings have denoted an increase of 60.14% int he last five years (2004-05 to 2009-10)
Readymade Garments account for almost 45% of the total textiles exports. Apparel and cotton textiles products together contribute nearly 70% of the total textiles exports.
The exports basket consists of a wide range of items comprising readymade garments, cotton textiles, handloom textiles, man-made fibre textiles, wool and woolen goods, silk, jute and handicrafts including carpets.
India's textiles products, including handlooms and handicrafts, are exported to more than a hundred countries. However, the USA and the EU, account for about two-third of India's textiles exports. The other major export destinations are Canada, U.A.E., Japan, Saudi Arabia, Republic of Korea, Bangladesh, Turkey, etc.
The export of textiles and clothing aggregated to US$ 22.42 billion in2009-10. The Government fixed the target for 2010-11 at US$ 25.48 billion. So far during the period April-September'10, exports of Textiles and clothing have been achieved at USD 11.26 billion.
IMPORT SCENARIOIMPORT SCENARIO The total imports of Textiles and clothings products
by India reached US$ 3.36 billion in 2009-10.Man-made Filaments was the biggest import amongst T&C items, with a share of 16.56% followed by impregnated textile fabric and cotton with a share of 15.62%. The imports have decreased by 3.30% during 2009-10 in dollar terms. However , the share of import of T&C products by India as percentage of total imports of all commodities has gone up during 2009-10, and reached 1.17% as against 1.14% during 2008-09.
summarysummary
India’s Textile & Apparel industry • (domestic + exports) is expected to grow from the current Rs 3,27,000 crores (US$ 70 Bn) to Rs10,32,000 crores (US$ 220 Bn) by 2020.
The Indian domestic Textile and Apparel market size in 2009 was Rs 2,18,570 crores (US$ 47 Bn) and is expected to grow @ 11% by 2020
Domestic Apparel retail market was worth Rs 1,54,000 crores (US$33 Bn) in 2009 and is expected to reach Rs 4,70,000 crores (US$100 Bn) by 2020
Men’s wear has the majority share of Apparel market currently (43%). However, women’s wear is growing at a higher rate of 12%compared to men’s (9%), boys’ wear (10%)
Home Textile market is estimated at Rs 15,570 crores (US$ 3.5 Bn) in 2009 and expected to reach Rs 40,000 crores ( US$ 9 Bn) by 2020
Technical Textiles market is estimated at Rs 49,000 crores (US$ 10.5 Bn) in 2009 and expected to reach Rs 1,46,000 crores (US$ 31 Bn) by 2020 growing
Global Textile and Apparel trade is recovering after a slump during the economic recession in 2008-09, and is expected to reachUS$ 1 Trillion by 2020 from the current US$ 510 Bn. The growth in trade is driven by increased outsourcing of western / developed countries towards lower cost countries in Asia.
India’s exports have also recovered in 2009-10 following increased global demand and is currently worth Rs 1,10,450 crores(US$ 23.5 Bn).
• India has the potential to increase its export share in world trade from the current 4.5% to 8% and reach US$ 80 Bn by 2020. Thehigh growth of Indian exports is possible due to increased sourcing shift from developed countries to Asia and India’s strengths as a suitable alternative to China for global buyers•
High growth categories include Women’s casual wear, Innerwear, Activewear, Kids wear, Women’s Westernwear, Plus Size Apparel, Lingerie, Workwear & Uniforms, Technical Textiles and Home Textiles
Dramatic changes in Indian Dramatic changes in Indian consumptionconsumption all all
values in US$ BN.values in US$ BN. source – source –Technopak Research & AnalysisTechnopak Research & Analysis
S.NO.
CATEGORY SIZE 2010 SIZE 2015
1. Apparel & Home Textile 37 49
2. Jewelary & Watches 29 40
3. Home - furniture ,Furnishing
12 17
4. Footwear 4 6
5. Health & Beauty service 1 2
……Other Factors Pushing the Other Factors Pushing the Demand of Home Textiles Demand of Home Textiles
Increase in discretionary Income •Spend on aspiration based purchasing
including home textilesUrbanization •Over 100Mn people will join urban areas during
the next decade who will drive the consumptionGrowing Eve Power•Estimated 40 to 45 million career woman across
age of 20 to 40 years in Urban India over next 10 years, with increased purchase decision making power
• The Indian textile industry’s contribution to the Indian economy:
Its contribution to the industrial production,
Employment generation and foreign exchange earnings.
The industry also contributes significantly to
the world production of textile fibres and yarns including jute.
CONCLUSION
CONTD..CONTD..
The Apparel Sector alone contributes to 8% of India’s total exports with exports recording a 1% growth over last year. By the year 2011-12, India expects to record a 15% growth in quantity and 20% growth in values.