3.

ANALYSIS The trends of various variables are analyzed in this section Turnover, and exports that are analyzed by sector wise as well as firm wise. The Rate of Growth (ROG) is a key parameter taken for analysis. RMG, MMTF and Weaving registered an increase in turnover from 1998 to 2006 whereas Composite and H&K sectors witnessed a deceleration in their turnover. But in the export the rate of growth of all sectors expect MMTF have been decelerated. (Table 1)
Table 1: Rate of Growth of variables in different sectors

The growth in turnover for RMG increased to 20.30% and is the leading sector of growth followed by weaving, MMTF, and H&K and composite lags behind with decrease in rate of growth (Table 1). This growth cannot be directly related to exports growth and is evident that it is driven by domestic consumption. The next part of the analysis is done by considering top 5 firms in each of the five sectors. Analysis by firm wise is done to establish and understand the factors of the rate of growth. Firms from the RMG sector is analyzed first.
Table 2: Rate of growth of different variables in RMG sector

Analysis of Readymade Garments sector provides significant insights. The increase in Turnover contributed by top 5 firms in not a proportionate way and the exports growth rate is positive for all the firms expect one. So there is not a single trend followed by the sector and is varied across the firms. Firms with negative export trends also have high increase in turnover
Table 3 Rate of growth of different variables in Weaving sector

Weaving sector registered the second highest growth rate with all firms .The top firm in weaving sector had its turnover increased by only 1 % while the second next increased rapidly by 35 %,This also indicates individual growth of the companies led by by separate actions rather than the firms following the industrial trends. The relation between the rate of growth of turnover and exports is also not well established. From the table 1 , ROG of weavings exports have reduced by 8.1 % the value almost equal to increase in ROG of turnover in weaving sector.

MMTF sector also had a positive growth rate of turnover and exports with all the top 5 firms expanding their output (Table 1 & 4). Exports of Four out of top 5 firms raised in the period 1995-2006 (Table 4)

Table 4 Rate of growth of different variables in MMTF sector

For H&K and Composite, we got highly unexpected results with their turnover and exports falling (Table 1). For H&K, four out of the top five firms (Table 5) had positive rate of growth of exports and turnover whereas exports are seen to fall steadily in all the five firms of Composite (Table 6)
Table 5 Rate of growth of different variables in H&K sector

Table 6 Rate of growth of different variables in Composite sector

In the composite sector the overall ROG in turnover and exports is negative ( Table 1).The ROG in exports reduced by 26 % ,the highest in the textile sector. This overall signifies the impact on the sector.

Ratio Analysis Ratio Analysis is done to do a comparative study of the variables.

The nominal exports to nominal turnover ratio indicates percentage of output exported. As seen in Table 7 the total export to turnover ratio has declined from 1998-99 to 2006-07 for all sectors apart from MMTF, where it increased by about 60% over the former period. The decrease has been significant in the composite mills and H&K segments, while in the remaining two sectors they have been rather marginal. The fall in this ratio for composite mills is evidently because of their loss of competitiveness. It is noteworthy that this ratio is very high for the RMG sector, which is an export dominated.
Table 7 Exports/Turnover Ratios for the year 1998-99 and 2006-07

The second ratio computed is the employment to real exports ratio. The ratio of the totaled figures showed an increase for all sectors apart from MMTF, where it fell by around 50%. (Table 8) It grew in very significant proportions for H&K and in almost equal proportion for Weaving and RMG. This, however, is again calculated
Table 8: Employment / Exports Ratio of all sectors.

between two points in time.

Through the previous ratio, we have tried to investigate how exports affected employment. The current ratio, the employment to real turnover ratio, gives an insight into how output affected it. Comparatively, RMG is the most labour intensive sector. While between 1998-99 and 2006-07 the ratio has more than doubled for H&K, it has

only marginally gone up for RMG and weaving. Expectedly, it has gone down for composite mills. It has also gone down for MMTF, though not by a significant share. Taking into account only the top five firms, the employee to turnover ratio for H&K remained largely the same with some fluctuations in between.(Table 9)

Similar trends have been seen in case of RMG and weaving, though the ratio has mildly fallen in some cases in RMG. Obviously, the uneven fluctuations make it difficult to identify and comment on the general movement. Table 9: Employment / Turnover Ratio of all sectors.

Inputs To examine the constitution of revenue and capital inputs by looking at what shares of these are imported, we have found the ratios that give us the insight. Imported to Total revenue inputs ratio Revenue inputs constitute raw materials and other input costs excluding capital and employment. From table 10, we find that the RMG and MMTF sectors utilize a larger percentage of imports. Between 1998-99 and 2006-07 this share has only marginally grown for the two sectors. It has predictably dipped for the composite mills segment.

Weaving and H&K continue to use small proportions of imported revenue inputs.
Table 10 Imported to total revenue inputs ratio (in percent)

Imported to Total capital inputs ratio For capital inputs, however, it is the H&K sector that utilizes maximum amount of foreign capital inputs, though this has considerably declined from 1998-99 to 2006-07. Unlike H&K, all other sectors have registered a growth in relative utilization of imported capital goods. The most striking feature of this growth is in the RMG sector where the relative utilization has gone up by over 45 times. There has been a substantial increase in consumption for other sectors too.
Table 11 Imported to total capital inputs ratio (in percent)