Basic Facts about India :
Among Top 10 economies of the world with a GDP of $ 2.4 Trillion USD.
A vast manufacturing base including aircraft, locomotives, ships, cars, power plants, capital machinery, chemicals, consumer electronics, textiles, apparel and food products.
Top destination in the world for low cost high value Software services and R & D.
Largest concentration of English speaking educated workforce in Asia.
The 6th nation in the world to launch a space program and telecom satellites.
2nd largest railway network in the world, together with vast coastline & sea ports.
A free market society with advanced legal, financial systems and a free press/media
One of the largest democracies of the world.
Founder member of GATT and active member on WTO.
Excellent rail/air services for passenger and freight movements.
Reforms in health sector by opening large medical institutes.
Farmers credit card scheme intensified.
Fiscal benefit in new power project extended from 2006 to 2012.
VERTICAL INTEGRATION : India's textile industry is truly vertically integrated from raw material to finished product, including fiber production, spinning, knitting and weaving, and apparel manufacture. Business and cultural linkages with neighboring countries Bangladesh, Sri Lanka, and Nepal, Thailand, Myanmar, PR China provide a platform for sourcing from them as well.
PRODUCTION VARIETY : Raw material production includes cotton, silk, wool, linen and manmade fibers such as polyester, viscose, acrylic, and polypropylene. Indian companies have built global scale even in non-traditional areas.
Fabric production includes fine dress fabrics, shirting, fabrics for trousers/shorts worsted suiting , denim, fleece, jersey, flat/woolen knits, technical fabrics, and more.
Apparel production includes active sportswear, outerwear, foundation garments, suits, socks, infantwear etc.
Production of made-ups includes a wide variety of bed, bath, and table linens, kitchen accessories etc.
LABOR FORCE : India's textile and apparel industry directly and indirectly employs 35 million people. The country has an abundant, low-cost base of labor which has long-term sustainability and very high skill in fabric-and garment-making.
CAPACITY : India's industry has consistently remained flexible in terms of production quantity and lead time and thus presents the possibility of producing quantities as low as a few hundred pieces.
A large base of European and American customers are already served from India, with almost 35% of apparel exports headed to EU.
OPERATING ENVIRONMENT : The textile and apparel industry is an important one to India, contributing 1.6% of industrial production and 30 % of total exports.
Import duties on capital equipment are low (the majority of the capital equipment used by the apparel industry, like sewing machines, can be imported at 5% basic customs duty), fabrics can be imported duty-free if made up into garments and re-exported, and import duties on fabrics and other raw materials are duty free for export production. The apparel industry can import duty free specified trimmings and embellishments like Fasteners, Rivets, Garment Stay, Laces, Badges, Sewing Thread, Sequin, Tape & others for export production.
India has a structured, multi-tiered administrative, political and legal system that would be familiar in nature to European and American investors.
2007-01-07 04:21:13
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answer #1
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answered by vinothan 2
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In a study of the evolution of the Indian manufacturing sector over close to three decades we find the annual average rate of growth in the nineties to have risen almost across the board at teh two-digit level of industry. Neverthless, the acceleeration is not particularly impressive for what is often hailed as the most significant policy-regime shift since 1950. There is a helfy rise in investment, however, though without a corresponding increase in its efficiency. And distribution has shifted sharply with labour's share declining. This paper attmpts to link these developments in a coherent way.
2007-01-06 23:24:32
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answer #2
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answered by golu s 1
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