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.

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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.
Percentage of Annual Level Distribution (as on 31.10.2000)

System	Yarn and Fabrics {Cat. 3, 3 a / EU, 31a, 32 a / Canada}	Fabric {other than Cat. 3, 3 a / EU, 31a, 32a / Canada }	Made - ups MM / PL	Made - up Handlooms	Readymade Garments
Past Performance Entitlement(PPE)	55	55	55	55	70
Manufacturer Exporters' Entitlement(MEE)	15	15	15	-	-
Ready Goods Entitlement(RGE)	30	15	15	45	-
Non-Quota Entitlement(NQE)	-	-	-	-	5
Powerlooms Exporters' Entitlement(PEE)	-	15	15	-	-
New Intestors' Entitlement(NIE)	-	-	-	-	15
First-Come-First Served(FCFS)	-	-	-	-	10

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

S.No.	Items of Work	Number of applications / samples / certifications 1999- 2000 2000- 2001*
1.	Quality inspection of cotton fabrics/yarn	3998	2234
2.	Quality inspection of other materials, such as towels, artsilk & blended items, etc.	446	36
3.	Limited inspections to ascertain loom origin	24368	11734
4.	Quality Appraisals (No. of lots)	19	29
5.	Certificates under Bilateral Agreements	25059	15370
6.	Classification of woven garments (No. of samples)	33809	14619
7.	Classification of hosiery garments (No. of samples)	561	270
8.	GSP Certificates	164327	84270
9.	Verification of GSP	831	815
10.	Registration (new exporters)	3414	—
11.	New Renewal	—	3769

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:
study to know the presence of free amines on cotton fabrics after dyeing with different acid dyes and exposing them to natural sun light and xenon arc light.
Study to find out the oil content in pupae of silk worm and also to find out the amines present in it. An Atomic Force Microscopy study on cotton fibres.
Studies to find out the impact of ban on azo dyes by Ministry of Environment & Forestry, Government of India.
Study on Screening of natural dyes for eco friendliness and related studies in association with FEAT, IIT Kanpur.

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:
Census of Power Processing Units.
List of category/tariff number (ITC-HS No.8 digit) for items covered under Chapters 50 to 63 of HS in the Indian context.
All India directory of merchant exporters, manufacturer-exporters, manufacturers for internal consumption and manufacturers for export as well as for internal consumption of textiles.

OTHER IMPORTANT DEVELOPMENTS DURING 2000-2001.
The Hon’ble Minister of Textiles inaugurated the new laboratory established at Jodhpur on 7th September, 2000.
All the laboratories of the Textiles Committee have started functioning on Saturdays also for the convenience of customers. A single window system for receipt of samples and delivery of test reports in laboratories is being implemented. The test report format has been sandardized.
Practice of holding quarterly meetings with the users of laboratories and other services has been initiated. Based on the feedback, the services are being improved.
A scheme for training of laboratory personnel of the industry has also been launched. The training material has been prepared. The response is positive.
A scheme for training of quality checkers of the industry was launched in August 2000. The response from the industry has been very encouraging.
Action was taken for the accreditation of eco laboratories of Textiles Committee by the Pollution Centrol Boards in Rajasthan, Maharashtra, Kerala, TamilNadu, Delhi and Punjab, for the testing of ecological and effluent parameters by the industry.
Four pronged strategy has been adopted to disseminate the services of the Committee with the foreign buyers:
meeting with the buying houses/agents in India- Delhi, Bangalore, Mumbai, Chennai and Tirupur, starting from November 2000.
Sending letters to Indian embassies to arrange publicity abroad.
Sending emails/letters to the foreign buyers
Participation in Fairs/seminars abroad.
An Advisory Committee on market research has been constituted to guide the market research activities of the Committee.

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.