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CHAPTER X Textile Exports The textile products continue to hold an important role in the
Indian exports. The data about export targets for 2000-2001 and the latest
status are given in the Table 10.1. Table 10.1
EXPORTS OF TEXTILES Exports of textiles have shown an increase at a compound annual
rate of growth (CARG) of 18.95% in rupee terms and 10.96% in dollar terms
during 1992-93 to 1999-2000. There had been a slowdown in textile exports,
with exports recording a modest growth of 4.4% in the fiscal year 1997-98 and
1.8% in 1998-99.
However, in the fiscal year 1999-2000, the textile exports have made a
turnaround with a performance of US$ 13.32 billion recording a growth rate of
6.1%. In the first nine months (April-December 2000) of the current
financial year, exports have reached US$ 9735.2 million as against US$ 9645.8
million during these months in the previous year, marking a growth of around
0.9%. A further analysis of the export data for the months of April to
December 2000 shows that the exports have increased in all the months, except
June and December 2000 which recorded a marginal decline of 1.8% and 2.8%
respectively. TARGETS AND ACHIEVEMENTS The target of US$ 15532 million was fixed for the year 2000-2001
for various Export Promotion Councils considering their performance during
1998-99 and potential during the year 2000-2001. Against this target, the
exports of US$ 9735.2 million during the period April-December 2000 indicate
an achievement of target by 62.7%. It is expected that the export targets for
the full year would be achieved. SECTOr-WISE
ANALYSIS Readymade
garments Readymade garments account for approximately 42% of the total
textile exports of the country.
They represent value added and less import intensive sub sector, thus
deserving a special place. Readymade garments had recorded an annual export
growth of 7.3% in 1998-99 and
4.9% in 1999-2000 in dollar terms. During April-December, 2000-2001, Readymade
Garment exports have amounted to US$ 3974.8 million which represents a growth
of 6.4% as compared to the corresponding period of 1999-2000. With reference to targets fixed
for the year 2000-2001, the achievement of target upto December is about 61.2%. The major importing countries/regions
of our readymade garments are the member nations of E.U., the U.S.A., Canada,
Japan, U.A.E. and Switzerland. Cotton textiles Cotton textiles i.e. yarn, fabrics and made-ups
(Millmade/Powerloom/Handloom) comprise more than 2/3rd of our exports of cotton,
silk, woollen and man-made textiles put together. There had been a slow down in exports of cotton
textiles in recent years, which is attributed to general recession in major
markets and the frequent use of anti-dumping action by European Union on our
cotton textile products. In the fiscal year 1998-99, cotton textile exports
recorded a decline of 2.4% over the previous year. However, in the year 1999-2000, the cotton textile exports
amounted to US$ 4084.1 million as against US$ 3899.5 million during the
previous year, marking a growth of around 4.7%. During April-December, 2000-2001, cotton textiles exports
recorded a decline of 5.7% in US dollar terms as compared to the
corresponding period of 1999-2000 Man-made fibre textiles During 1998-99, the exports of man-made textile items had
declined by 6.6% in dollar terms.
However, in the year 1999-2000, the exports of man-made fibre textiles
showed an increase of 12.9% over the previous year in dollar terms. During April-December, 2000-2001,
man-made fibre textiles exports have recorded a decline of 10.6% in US dollar
terms as compared to the corresponding period of 1999-2000. With reference to targets fixed for
the year 2000-2001, the achievement of target upto December is about 64.3%. Silk textiles This is comparatively a small segment with exports hovering
around US$ 270 million during the past few years. During the year 1999-2000, silk exports have shown a
positive growth of 19.4% in dollar terms. During April-December, 2000-2001, exports of silk textiles
have further increased by 3.10% in US dollar terms as compared to the
corresponding period of 1999-2000. With reference to targets fixed for the
year 2000-2001, the achievement of target upto December is about 77.8%. Woollen textiles Exports of woollen textiles had been showing declining trend,
which has been attributed to sluggish market conditions, over-stocking in
major markets, etc. In the year
1999-2000, exports of woollen textiles have shown a decline of 2.8% in
comparison of exports of previous year. During April-December, 2000-2001,
woollen textiles exports have shown a decline of 19% in US dollar terms as
compared to the corresponding period of 1999-2000. The achievement of annual
export target by the sector during period April-December 2000 is about 55.1%. Handicrafts Handicrafts is one of the sub-sectors which contributes
substantially to the overall exports of the textiles sector. In dollar terms,
the sector exhibited an annual export growth of 4.1% in 1998-99 and 10.7% in
1999-2000. During April-December
2000-2001, handicraft exports increased by 9.4% in US dollar terms as
compared to the corresponding period of 1999-2000. With reference to targets
fixed for the year 2000-2001, the achievement of target upto December is about
71.2%. Coir The coir exports had recorded a growth of 4.0% in 1998-99 in
dollar terms. However, the coir
exports showed a negative growth of 2.3% in 1999-2000. During April-December,
2000-2001, coir exports have further recorded a decline of 3.6% in US dollar
terms in comparison to the corresponding period of 1999-2000. With reference
to targets fixed for the year 2000-2001, the achievement of target upto
December is about 65.0%. Jute The jute exports had recorded a negative growth of 20.5% in
1998-99 and 11.4% in 1999-2000.
However, during April-December, 2000-2001, jute exports have shown an
increase of 5.4% in US dollar terms as compared to the corresponding period
of 1999-2000. With reference to
targets fixed for the year 2000-2001, the achievement of target upto December
is about 62.6%. Administration of Export
Entitlements (Quotas) The international trade in textiles and clothing was regulated by
special arrangements for 40 years outside the rules of General Agreement on Tariff
and Trade (GATT). The framework of Multi-Fibre Arrangement (MFA) applied to
international trade in textiles and clothing for the period 1974 to 1994.
India entered into bilateral agreements with USA, Canada, EU etc. exports to
which account for a major share of total exports of Indian textiles.
Consequent upon the establishment of the World Trade Organisation (WTO) with
effect from 1.1.1995, the quantitative restrictions in the bilateral
agreements under the MFA are being governed by the Agreement on Textiles and
Clothing (ATC) contained in the final Act of the Uruguay Round of
Negotiations. The quota regime in the textile sectors is scheduled to be
completely phased out by the end of the year 2004. The Ministry of Textiles is operating Garments and Knitwear
Export Entitlement (Quota) Policy 2000-2004 and Yarn, Fabrics and Made-ups
Export Entitlement (Quota) Policy 2000-2004 for distribution of quotas
imposed by USA, EU and Canada. The break up of quota allocation under various
systems for export of yarn, readymade garments and other textiles is given in
the Table 10.2. Table 10.2
As indicated in the table, the available quotas are distributed
under different systems of allocations such as Past Performance Entitlement
(PPE), First Come First Served Entitlement (FCFS), Manufacturers Exporters’
Entitlement (MEE), Non-Quota Entitlement (NQE), Powerloom Exporters’ Entitlement (PEE), New
Investors’ Entitlement (NIE) etc. Export Entitlement (Quota) Policy in
respect of Garments and Knitwear is implemented by Apparel Export Promotion
Council (AEPC) and Wool & Woollen Export Promotion Council, whereas in
the implementation of Export Entitlement (Quota) Policy in respect of Yarn,
Fabrics and Made-ups, three Export Promotion Councils namely Cotton Textiles
Export Promotion Council, Synthetic & Rayon Export Promotion Council and
Wool & Woollen Export Promotion Council are involved. During the year 2000-2001, certain provisions of Garment and
Knitwear Quota Policy were amended to make them more transparent and exporter
friendly. These are listed below:- i) A
Notification dated 13-6-2000 has been issued clarifying that the third party shipments
are not allowed in respect of non-transferable quotas. This has been done because third
party shipments are nothing but de-facto transfers and, therefore, the third
party shipments against non-transferable quotas are violation of the
provisions of policy and are liable for enforcement action. ii) A
Notification dated 21-7-2000 has been issued to allow the stand alone
exporting units, directly engaged in value addition to garments and totally
dedicated to garmenting activity, to claim NIE quota. Besides, the Notification also
provides the NIE quota holders to opt for not more than 50% of their eligible
investment for entitlement in the next year. This provision has been introduced to facilitate
continuity in export operations by the new investors. iii) A
Notification dated 20-11-2000 has been issued to streamline provisions
governing appeals against the EMD/BG forfeiture orders passed by the
appellate bodies. The Notification lays down that the exporter aggrieved by
the forfeiture of the EMD/BG by Quota Administering Authority may file an
appeal only if he gives Bank Guarantee/Fixed Deposit/Demand Draft to cover
the amount of forfeiture. At the same time, the facility of submission of
Legal Undertaking (LUT) has been given to the eligible exporters who have
paid the penalty of forfeiture imposed on them within the stipulated time.
Thus, the notification serves the twin purpose of ensuring recovery of the
Government revenues and at the same time strives to remove the practical
difficulties in availment of LUT facility by the eligible exporters. iv) A
Notification dated 8-1-2001 has been issued to allow carry over of Part-I
quotas to Part-II period subject to the condition that quota of that
country/category which the exporter wants to carry over to the second part
and even the second part quota in that particular country/category shall
become non-transferable during the entire allotment year. The measure has been introduced to
mitigate the difficulties in export of certain textile categories having
seasonality in demand. EXPORT PROMOTION MEASURES In order to encourage upgradation of Textiles Sector and to give
a fillip to exports of Textiles products, some of the important facilities
available are as follows: i)
Export Promotion Capital Goods (EPCG)
Scheme: The facility to
import capital goods under EPCG Scheme at 5% concessional rate of duty. ii) Advance Licensing
Scheme: With a view to
facilitating exporters to access to duty-free inputs under the scheme,
standard input-output norms for about 300 textiles and clothing export
products have been prescribed. The Standard Input-Output Norms for a number
of apparel items have been revised upwards, based on large garment size. iii) Duty
Exemption Pass Book (DEPB) Scheme: DEPB credit rates have been prescribed for 79 textiles and
clothing products. The
nomenclature and rates for DEPB entries pertaining to certain textile
products have been rationalised. iv) Special Import Licence: The special import licences (SIL),
which are valid for import of items appearing in ITC (HS) classification of
Export and Import items subject to payment of normal customs duty, are
available to (a) Deemed Exports, (b) Export Houses, (c) companies holding
ISO-9000 series or equivalent standards; at the fixed rates. Textiles Committee has already
brought out model manuals and has been serving a country-wide campaign to
facilitate textile sector units to acquire ISO-9000 standard certification. v) 100% EOU/FTZ
Scheme: Under the
scheme, units undertaking to export their entire production of goods can be
set up. They are entitled to
import of all inputs as well as capital goods on a duty-free basis. There are now more than 300 EOUs manufacturing
textiles including yarn and clothing. Relaxation from count/domestic cotton
use restrictions to 100% EOUs producing cotton yarn have been extended for
the year 2000. vi) In
terms of Para 5.40 of the Handbook of Procedures (Vol.I), supplies made by
foreign buyers or procured by the exporters on the advice of foreign buyers,
of labels, price tags, hangers and trimmings materials like buttons and belts
to be attached to the goods against specific orders placed by foreign buyers
on Indian exporters have been allowed to be imported without a licence. vii) Technology
Up-gradation Fund Scheme:- In view of the urgent need for stepping up the
process of modernisation and technology upgradation of the textile industry
in India, Ministry of Textiles,
has launched a Technology Upgradation Fund Scheme (TUFS) for the
textile and jute industry for a five years time frame w.e.f. 01.04.1999 to
31.3.2004, providing for 5% interest reimbursement in respect of loans
availed thereunder from the concerned financial institutions for investments
in bench-marked technology for the sectors of the Indian textile industries
specified thereunder. An amount
of Rs.4201.15 crores involving 803 applications has been sanctioned upto 31st
January, 2001. Out of which, an
amount of Rs.2236.52 crores stands disbursed to 560 applicants. viii) Duty Drawback
Scheme:- The objective
of the system is to reduce the burden of indirect taxes on exports and make
them more competitive in the international market. ix) Duty Free Import of
Trimmings and Embellishments: Earlier seven items of trimming and embellishments namely labels,
tags, stickers, buttons, printed bags, belts and hangers were allowed to be
imported on a duty-free basis by the bonafide garment exporters. Vide
Notification dated 8.11.1999, imports of lining and inter-lining materials
used by exporters have also been allowed duty free. On a proposal made by
Ministry of Textiles, Deptt. of Revenue extended the facility for duty-free
imports to 13 more items of trimming and embellishments subject to value cap
of 3% of the FOB value of textile garments or leather garments exported
during the preceding financial year, vide Notification dated 19.4.2000. x) The
list of Garment making and processing machineries allowed for import on
concessional rate of 5% duty is available for 159 number of textile machinery
items. xi) Cotton Technology
Mission on Cotton (TMC): Technology Mission on Cotton has been launched with objectives of
research, dissemination of technology to farmers, improvement in marketing
infrastructure and modernisation of ginning and pressing factories to
increase the productivity and quality of cotton. Since Indian textile industry and exports are
predominantly cotton based, the TMC is expected to improve the availability
of quality cotton at reasonable prices for export production of value added
yarn, fabrics, made-ups and garments. xii) Cotton
Yarn Exports: The
Government has also fixed a higher ceiling of 500 million Kgs on cotton yarn
exports during Calendar year 2000. The pre-condition of fulfillment of hank
yarn obligation for cotton yarn exports was removed, although the obligation
continued at the existing 50% level. The 100% EOUs which are manufacturing
cotton yarn subject to count restrictions have been permitted to export
cotton yarn without any count/domestic cotton use restriction upto 31st December
2000, provided that such exports are within the overall quantitative ceiling
of 500 million Kgs. xiii) Liberalisation
of FDI Policy: Government
have been taking measures from time to time to liberalise policy for foreign
direct investment inter-alia in the textile sector. Recently, Government has
allowed foreign equity participation upto 100%, through automatic route, in
the textile sector with certain exceptions. xiv) National Textile
Polcy: The Government
has formulated a Textile Policy to provide the policy direction for orderly
and sustained development and growth of the textile industry in a harmonious
way. One of the key features of the National Textile Policy is to de-reserve
the garment industry from the Small-Scale Industry sector. Under the new
Policy, Government will endeavour to achieve an export turnover of textiles
and apparel from the present level of US $ 11 billion to US $ 50 billion by
2010 of which the share of garments will be US $25 billion. xv) Human Resource
Development : Attention
has also been paid to Human Resource Development in the textile sector. Towards this end, particular mention
deserves to be made of National
Institute of Fashion Technology (NIFT) which is imparting training to
Fashion Designing and Fashion Technologists to cater to the human resource
requirements of garment industry.
The NIFT has 6 branches at Mumbai, Calcutta, Hyderabad, Bangalore,
Chennai and Gandhinagar. Ministry of Textiles is also concerned over the need to improve
the quality of textile training institute in the country. Therefore, a Nodal Centre for
Upgradation of Textile Education has been established at the Indian Institute
of Technology, Delhi with funding from the Ministry of Textiles. Apparel Export Promotion Council is constructing an Apparel
International Mart at Gurgaon for which partial assistance is being given by
the Ministry of Textiles from Public Deposit Account maintained by the Govt.
of India out of EMD/BG forefeiture from the garment exporters as per the
relevant Garment Exports Entitlement Policy. The total area of the plot is 5 acres and it is
proposed to build an Apparel International Mart (AIM) Complex and 250-300
showrooms also which will be allotted to the exporters as per set criteria. The Apparel Export Promotion Council has been running Apparel
Training and Design Centres in order to train craftsmen at shop floor level
to meet the growing needs of Apparel Industries. The Government has set up NCUTE at Delhi in collaboration with I.
I. T. Delhi. This centre is engaged in mapping the present textile education
scenario at various levels of human resource requirement, identifying the
qualitative and quantitative gaps and will prepare an action plan supported
by the required software to fill these gaps based on sector wise felt
needs. This centre is also
expected to conduct seminars, workshops and suitable courses for trainers and
resource personnel and in the long run, become a focal resource centre in HRD
planning. xvi)
High Powered Export Promotion Board
(EPB) Government have
set up a high powered Export Promotion Board (EPB) under the Chairmanship of
the Cabinet Secretary. The basic
objective of the EPB is to co-ordinate efforts of all concerned Ministries so
as to create a more favourable environment for maximising export
earnings. Considering the
singular contribution of textiles and clothing exports in the country’s
export basket, EPB has been accordingly focussing attention towards these
sectors, particularly the garment and handicrafts sectors. The steps which
have been initiated following discussions in the EPB include rationlisation
of drawback for garment EOUs, enlargement of the list of trimming and
embellishment for duty-free imports, rationalisation of SION norms for
garments items e.t.c. The EPB
has been seized of the need to improve port facilities and, in this behalf
taken certain decisions relating to promotion of containernisation, greater
efficiancy in cargo clearance improvement in port handling facilities
implementation of EDI linkags
etc. xvii)Constitution of
Exporters Grievance Redressal Cell to co-ordinate the disposal of
complaints/petitions/requests:- The High Level
Committee on the Redressal of Grievances of the exporters met periodically
under the Chairmanship of Secretary (Textiles). The Committee consisting of the representatives from the
Department of Revenue, Ministry of Finance, DGFT/ Ministry of Commerce and
the Textile Export Promotion Councils discussed various points raised by exporters.
Appropriate decisions on the issues are being taken by the Committee to
resolve the difficulties of the exporters. IMPORTANT DEVELOPMENTS IN
INTERNATIONAL TEXTILE TRADE:- a)
Successful resolution of the differences
on implementation of Indo- EU market access agreements In December 1994, India had signed two separate market access
textile agreements (called MoUs) with European Union and United States. Under
Indo-EU MOU, market access was to be facilitated through tariff bindings and
removal of Quantitative Restrictions. EU was to remove all restrictions on
India's exports of handloom products and cottage industries products. In
addition India was to be given exceptional flexibilities in addition to the
existing flexibilities. The quantum of flexibilities was 7000 tonnes per year
for 1995-97 and 8000 tonnes per year for 1998-2004. However, a number of differences had been persisting over the
actual implementation of the MoU, particularly in regard to the grant of
exceptional flexibilities by EU and the tariff binding notification by India.
The EU denied exceptional flexibilities during 1997 and fully during 1998 and
1999 on the ground that India had not bound its tariffs as per MoU. The consultations were held with EU
in July 2000, in which the long-standing differences over implementation
issues have been successfully resolved. Pursuant to the consultations, India
has notified the revised tariff bindings to WTO. On the other hand, EU has released 8,000 tonnes of
exceptional flexibilities for year 2000. EU has also agreed to release 8,000
tonnes of exceptional flexibilities during the remaining years till 2004,
that is, till the end of the textile quota regime. b)
Successful resolution of the differences
on implementation of Indo- US market access agreements As per the Indo-US MOU signed in December 1994, the US had
extended the following provisions to India:- (i) The
specific limit on Cat. 369-O, comprising other cotton made-ups, has been
removed. (ii) The
base levels for the categories 218 (Yarn Dyed Fabrics); 219 (Duck Fabrics);
313 (Cotton Sheeting); 342/642 (Cotton & MMF Skirts); 347/348
(Trousers/Slacks & Shorts) and Group II have been increased by 5%. (iii) Additional
5% quotas have been given for 100% cotton garments made of handloom fabrics
in categories 334/634 (Men's and boys coats) and 351/651 (Pyjamas and
nightwear). (iv) In
certain categories, additional flexibilities viz. swing, special swings etc.
have been provided. (v) All
outstanding issues relating to the export of 'ghagras' have been resolved. In order to accommodate some of the concerns of the USA, India
had agreed to give a phased tariff liberation and limited market opening
schedule for certain textile items at varying rates, for periods commencing
from 3 to 7 years. As per Indo-US MOU, India had agreed to bind its tariffs in
respect of 385 HS lines annexed to the MOU, within a period of 60 days from
the commencement of WTO i.e., 1-1-1995. However, the revised tariff bindings
could not be notified to the WTO as the export price data was furnished by US
only in April 1999. On receipt of the export price data from the US, wide
consultations were held with the textile Industry Associations and the
revised tariff bindings in respect of Indo-US MoU was finalised and notified
to WTO on 15th June 2000. However, the US expressed certain objections to the
tariff binding notification and requested consultations to resolve the
differences. Consultations were held with US in August and September 2000 in
which an Understanding was reached on the outstanding issues. In pursuance of
the Agreement reached with US in September 2000 and with EU in May 2000, a
revised combined tariff binding Notification has been filed with WTO and the
applicable rates brought in conformity with the two agreements. US has lifted its objections on
the tariff binding notification.
It has also restored GSP concessions on 9 Indian handloom fabrics as
per the Agreement. c) Bed linen
anti-dumping case with European Union European Union (EU) had imposed definitive anti-dumping duty
ranging from 11% to 24% on imports of cotton type bed linen originating from
India. The definitive duties had come into force w.e.f. 5.12.1997. This AD
case was preceded by an earlier AD investigation conducted by the EU (during
20th January, 1994 - 9th July, 1996) concerning certain type of bed-linen
imported from India, Pakistan, Thailand and Turkey. The imposition of anti
dumping duty, therefore, had a debilitating impact on a wide section of the
industry as the bed-linen exported to the EU is produced by over 100 textile
mills in India. The Government of India decided to contest the EC’s action and
initiated the process under the dispute settlement mechanism of the WTO. The
WTO established the Panel and the Panel has submitted its final report. The Panel
has concluded that EU had acted inconsistently in determining the existence
of margins of dumping, failing to evaluate all relevant factors having a
bearing on the state of the domestic industry besides failing to explore
possibilities of constructive remedies before applying anti-dumping duties.
The Panel further concluded that EU’s action was prima facie a case of
nullification or impairment of benefits under WTO and recommended that it
should bring its rules in conformity with its obligations. The EC filed an
appeal with the Appellate Body Against observations of the Panel regarding
calculation of dumping margin on the basis of zeroing concept (Article
2.4.2). India also filed a cross appeal on the use of sales, general and
administrative expenses and profit margin of a single producer and inclusion
of sales in the ordinary course of trade in calculation of profit margin
while determining the normal value for other exporters and producers (Article
2.2.2). The Appellate Body (AB) has submitted its report. The AB has
upheld the findings of the panel disallowing the practice of ‘Zeroing’ when
establishing the existence of margin of dumping. In other works, the appeal
of the EU has been dismissed. On the second issue of the method of
calculating amounts for administrative, selling and general costs and profits
under Article 2.2.2(ii), India’s contention in its appeal has been upheld by
the AB. d) Anti
dumping duty on import of Polyester Textured Yarn (PTY) The Turkey authorities had initiated an anti dumping
investigation w.e.f. 4th March, 1999 concerning import of PSF originating
from India, Korea, Thailand and Taiwan. The Synthetic and Rayon Textile
Export Promotion Council (SRTEPC) have been defending the interest of the
Indian exporters. SRTEPC made a detailed presentation of the facts to the
Turkish authorities covering issues such as standing of application,
procedural lapses, refuting the allegation of injury and lack of casual link.
However, Turkey has imposed anti dumping duty on imports of PTY from India,
Taiwan and South Korea w.e.f. 2.6.2000 ranging from 6.8% to 33.7%. The
possibility of lodging protest with the Turkish authorities are being
explored. e) Anti dumping duty
by EC on import of Polyester Staple Fibre (PSF) The EC had initiated an anti-dumping proceeding concerning
imports into the European Community of PSF in December 1999. Synthetic Rayon
Textile Export Promotion Council (SRTEPC) coordinated the defense of the
case. The EC imposed provisional anti-dumping duty against imports of PSF
from India in July, 2000. Subsequently, the EC issued final disclosure. As per the final disclosure,
definitive dumping margins as a percentage of the CIF import price are in the
range between 23% and 36%. Anti
dumping duty rates proposed (not
specified) correspond to the dumping margins which were found to be lower
than the injury margins. The
provisional anti-dumping duty rates ranged between 26.6% and 36.5%. f) Anti-Dumping
investigation by Korea Trade Commission (KTC) against imports of combed yarn
originating in India, Pakistan and Indonesia In accordance with Article 5.5 of the Agreement of Implementation
of Article VI of the GATT 1994 and paragraph 4 of Article 59 of presidential
decree of Korean Customs Act, the KTC had received an application from
Spinners and Weavers Association of Korea (SWAK) to initiate an anti-dumping
investigation into imports of Combed Yarn originating from India, Pakistan
and Indonesia on 20.01.01 KTC has decided to initiate anti-dumping investigation against
India, Pakistan and Indonesia vide Public Notice No. 2001-2 dt. 24.02.2001.
Texprocil is coordinating the case to protect the interests of Indian
Exporters. g) Operationalisation of
Free Trade Agreement (FTA) with Sri Lanka The Government of the Republic of India and the Government of the
Democratic Socialist Republic of Sri Lanka had signed a Free Trade Agreement
(FTA) on the 28th of December, 1998, inter-alia, to promote mutually
beneficial bilateral trade. Pursuant to the FTA, a meeting between the two
sides (India and Sri Lanka) was held on the 2nd of February, 2000, to
operationalise the Agreement, wherein, amongst other things, it was decided
that Sri Lanka could export into India in any one calendar year 8 million
pieces (pcs.) of apparel articles falling under chapters 61 and 62 of the
Harmonized System of Nomenclature (HSN), on the payment of preferential
import duty. It was also agreed that for the manufacture in Sri Lanka of 6
million pcs. out of these 8 million pcs. of apparel articles, the sourcing of
fabrics will be done from India. It was further agreed that not more than 1.5
million pcs. will be of any one product category. The preferential tariff quota for the calendar year 2000 is
capped at a total of 6.67 million pcs, of which a minimum of 5 million pcs.
will be manufactured in Sri Lanka out of the fabrics of Indian origin and the
quantum of export of such apparel articles by Sri Lanka into India shall not
exceed 1.5 million pcs. in respect of a single product category stands. In order
to finalise the procedural arrangements for the operationalisation of the
Tariff Rate Quota Arrangement in respect of apparels, the Sub-Groups of the
delegations of the Government of the Republic of India and the Government of
the Democratic Socialistic Republic of Sri Lanka met in New Delhi, in April,
2000 and finalised the modalities for operationalisation of FTA.
h) Dispute with Turkey on
quota restrictions Consequent upon ruling in India's favour by the DSB Appellate
Body of the WTO in the Indo-Turkish dispute, India has signed an Agreement in
January 2000 with Turkey under which the annual quota levels of India's
textile exports to Turkey stand enhanced by 50% over the time period of 15
months. Permanent Mission of India to the WTO, Geneva has impressed upon the
Turkish side to implement the Agreement at the earliest. However, Turkey is
yet to implement the Agreement. i) Meeting of
the International Textiles Clothing Bureau (ITCB): India participated in the 31st session of the Council of Representatives
of the ITCB held in Guatemala City, Guatemala from 29th May to 1st June 2000.
The Council deliberated on the issue of meaningful integration under the WTO
Agreement on Textiles and Clothing.
The Council also took stock of the current trends in trade in textiles
and clothing and the evolving developments in the multilateral trading
system. It also analysed the possible scenarios beyond ATC implementation and
highlighted its concerns over such issues as anti-dumping, safeguards and
tariffs as well as environmental, labelling and other emerging requirements.
At the end of the session, a joint communique was issued, which highlighted
the developing county concerns on their access in global trade in textiles
and clothing. j) Indo-EU
Joint Working Group (JWG): A Working Group on Textiles has been constituted under the
framework of Indo-EC Joint Commission. The objective of the Working Group on
Textiles is to provide a sub-forum for smooth implementation of Indo-EU MOU
and to explore the possibilities for facilitating and promoting textiles and
clothing trade between India and EU Member States. The first meeting of the Indo-EU Joint Working Group (JWG) on
Textiles was held on October 23-24, 2000 at Brussels. In the JWG, both sides
welcomed the settlement of implementation issues of Indo-EU MOU. India raised
the issues relating to meaningful integration under the ATC. The Indian side also raised certain
other market access issues and impressed upon EU to rescind Anti-dumping
duties on Cotton type bedlinen and reconsider the levy of provisional
anti-dumping duties on Polyester Staple Fibre from India. k) 5th Asia Pacific
Textiles and Clothing Industry Forum (ASPAC-TCIF): The objective of the ASPAC-TCIF is to assess the current and
future scenario of textiles and clothing industry in the Asia Pacific region.
Seventeen countries including India are the members of the Forum. India had
participated in the first three meetings and had successfully hosted the 4th
meeting of the Forum at New Delhi in December 1999. India participated in the
5th meeting of the ASPAC-TCIF held in Shenzhen City, China from 13th to 16th
November 2000. THE ACTIVITIES OF THE
TEXTILES COMMITTEE The Textiles Committee, established by the Textiles Committee
Act, 1963, has the primary
objective of ensuring quality of textiles both for internal marketing and
exports. Its functions include
promotion of textiles and textile exports, research in the technical and
economic fields, establishing standards for textiles and textile machinery,
setting up of laboratories, data
collection etc. The Textiles Committee besides its Head quarters at Mumbai, has
29 Regional Offices. It has set up Laboratories at 15 important centres to
assist the industry and trade in testing their products. The Committee has the following
functional divisions at headquarters,
Mumbai (1) Textiles Inspectorate Wing (2)
Textiles Laboratory Wing (3)
Market Research Wing (4) ISO Wing (5) Vigilance Cell (6) Accounts
Wing, and (7) Administration and
Co-ordination. The Committee levies and collects cess from all textiles and
textile machinery manufacturers at the rate of 0.05% ad
valorem with effect from 1.5.1977. The Cess thus collected is deposited into
the Consolidated Fund of India and the budget of the Committee is met from
the fund allocated by the Ministry. The Inspectorate wing continued to carry out the statutory and
voluntary inspection of textiles,
inspection of material for establishing the loom origin, issue of GSP
and other special certificates during the year. The major work carried out during 1999-2000 and till
October, 2000 is given in Table 10.3. Table 10.3
The laboratories of the Textiles Committee continued to render
services to the trade and industry, under the Commercial Testing of Samples
Scheme. During the year 1999-2000,
22112 samples were tested for quality parameters and 1181 samples for eco
parameters. The revenue
collected was Rs. 117.02 lakh.
During the current financial year 2000-2001, from April to
October, 18520 samples were
tested for quality parameters and 676 samples for eco parameters. The revenue collected is Rs. 54.53
lakh. The following four R&D studies were continued:
During the year 1999-2000, the Market Research Wing of the
Committee continued the Consumer
Purchases of Textiles Survey
and collected data from 10, 250 house-holds, selected on a random sampling basis from all over the country. During the current year also, the
study was continued. The sample
size was increased to 11100 households. The programme of computerisation of the working of the Textiles
Committee at Headquarters, Mumbai was taken up vigorously with the National
Informatics Centre (NIC), as the Consultant. The software so developed were
put to common use. The
computerisation of the regional offices was also taken up. During the year 1999-2000 computers
were installed in 25 offices.
During the current financial year, the remaining offices will be computerised. During the year 1999-2000, 145
employees were trained in computer operation and during 2000-2001, so far 131
employees have been trained.
During the current financial year 2000-2001, the Committee posted its website www.textiles
committee.nic.in. The website is
updated on a monthly basis.
E-mail and internet facility have been provided to 19 offices so
far. The remaining offices will
also be provided these facilities during the current year. Textiles Committee has set up a Standing Committee under the chairmanship of the Textile
Commissioner to look after consumer interests. The Standing Committee
comprises the representatives of NGOs involved in consumer protection
programmes and representatives from the trade and industry. The Standing Committee met three times during 1999-2000 and once
during the current year. Complying with the decisions of the Standing
Committee, the regional offices
of the Textiles Committee, in co-ordination with the offices of the Textile
Commissioner and Consumer protection organisations of each region,
conducted 35 awareness programmes
during 1999-2000 and seven so far in the current year. The following industry specific surveys/census/ documentation
continued:
Other important developments during 2000-2001.
National Institute of
Fashion Technology ( NIFT) National Institute of Fashion Technology (NIFT) was registered as
an Autonomous Society in 1986.
It is a Government funded institution under the Ministry of Textiles
with Secretary (Textiles) as Chairman of the Board of Governors (BOG). Besides the Chairman, there are 17
members on the Board of NIFT, including the Director General who is the Chief
Executive Officer of the organisation.
The present Board of NIFT’s tenure is upto September 2001. NIFT was established in collaboration with the Fashion Institute
of Technology (FIT), New York.
The genesis of NIFT was in the idea of an apex institution to cater to
the growing needs of India’s evolving fashion industry. Over the years, NIFT has emerged as
the premier training institute in India nurturing and creating bright
generations of professionals in different areas of fashion technology,
meeting the human resource requirements of this vital industry. Its high level of interaction and
collaboration with the leading fashion institutions of the world has enhanced
the stature and scope for the fashion industry in India to meet the
challenges of the industrial competitiveness on a global plane. Between 1986-95, NIFT was a single unit entity at Delhi offering
a varied range of full time programmes and professional courses. Beginning from July 1995, NIFT has
set up under its umbrella six other Centres located at Bangalore, Calcutta,
Chennai, Gandhinagar, Hyderabad and Mumbai. These Centres have a Director in-charge who is assisted by
a Registrar and a nucleus staff; Director General being responsible for the
overall coordination and monitoring of the activities of these Centres. The Centres are under the
common management of the BOG. The State Level Management Committee (SLMC) of each Centre,
consisting of representatives from the Government, Industry and having the
Chief Secretary as its Chairman, acts as a link among the Industry, NIFT Centre, State and Central Governments. The Registrar of the Centre is the
designated Member-Secretary of the SLMC. MAJOR LANDMARKS OF NIFT
DURING 2000-2001 1.
With
effect from the academic year 2000, the following new programmes were
commenced in the various NIFT Centres: ·
‘Fashion
Design (Advanced Programme)’ and ‘Fashion Communication’ programmes in NIFT,
New Delhi; ·
‘Apparel
Marketing & Merchandising Management’ and ‘Textile Design &
Development’ Programmes in NIFT, Hyderabad; ·
‘Textile
Design & Development’ Programme in NIFT, Calcutta; ·
‘Accessory
Design’ Programme in NIFT, Gandhinagar; ·
‘Knitwear
Design & Technology Programme’ in NIFT, Mumbai. ·
Fashion
Design & Merchandising through Correspondence in all Centres of NIFT, including
NIFT, Delhi. 2. After the
successful launching of the course titled ‘BCA / Fashion Information
Technology course last year, the second batch of the course has been started
during this year in Delhi. This
course has also been introduced in all the NIFT Centres outside Delhi. 3. The second Foundation Programme to provide an integrated perspective to the new entrants of regular courses of NIFT was held between 17th to 29th July 2000. The Programme was held at Delhi as well as at Hyderabad dividing the new batches of students of all the Centres into two groups for the purpose of convenience. Eminent speakers from all walks of life addressed the students. 4. The first meeting
of All-India NIFT Alumini Association was held in May 2000 under the
Chairmanship of DG, NIFT paving the way for formation of the Alumini. The process of its establishment is
under way. 5. NIFT-Offshore
Training Centre was established at Dubai marking the first-ever international
venture of NIFT. This Centre will
conduct short-term courses of NIFT in Dubai. 6. Seminars
commemorating the five years of NIFT Centres in Calcutta, Chennai,
Gandhinagar, Hyderabad and Mumbai were organised which were attended by
representatives of the State Governments and Industry. 7. Class-room
facilities, library and resource facilities of all the NIFT Centres are being
strengthened keeping in view the requirements of the Centres, after
introduction of the new courses. 8. Computer
Education Programme :- The
Computer Centres in all the NIFT Centres have been equipped with necessary
hardware and software to cope up with the requirements after taking into
consideration the new course(s) started in all the Centres.
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