SYNOPSIS On

EXPORT OF READY-MADE GARMENTS TO AUSTRALIA

INTRODUCTION
The Indian ready-made garment industry has been the largest foreign exchange earner for the country and accounts for almost 14% of the total foreign exchange earned by the country. The exports of Garments, which were Rs. 30,86,008 in 1997, up to Rs. 26,72,007 during 2005-06. The major markets of Indian exported garment have been the EU and USA, which together contribute almost 68.30% of the total garment exports. Other restrained countries amount for 4.03%. The Non-Quota countries account for 27.67% share, though in totally the exports of Non-Quota items to quota countries and OBA countries account for 43.12%. With the objectives of promoting exports from India to non-quota countries, which do not impose quantitative restrictions, various export promotion measures in such countries are to be initiated by Apparel Export Promotion Council of India, as a large market prevails therein. Among the notable non-quota countries are Australia and New Zealand. In 2005-06 Indias export of readymade garments to Australia and New Zealand amounted to US $56.5 mn and US $11.9 mn respectively.

AUSTRALIA PROFILE

The Place Australia is in the Southern hemisphere and lies Southeast of Asia between the Indian and Pacific Oceans. The total area covered is 77,41,000 sq. kms and has a meager population of 19 million. Australia has an efficient Air, Road and Rail Transport Services operating throughout Australia spans 3,700 kms (2,294 miles) from North to South and 4000 Kms. (2,480 miles) from East to West. Mainland Australia is mostly a flat low lying land, the centre of which consists of vast, arid desert. The Climate The capital cities and coastal areas, where most of the population lies, enjoy pleasant climates with long hours of sunshine and mild winters. However, Darwin, Brisbane and Sydney tend to be hot and humid in summer. The seasons are the reverse of these in the Northern Hemisphere. CLIMATIC CONDITIONS ARE AS FOLLOWS : Summer Autumn Winter Spring From December to February From March to May From June to August From September to November

January is the hottest month. The conditions vary according to geographic locating within the vast continent from tropical to temperature climate. TIME DIFFERENCE: Perth (Western Australia) IST + 2.5 hrs.

Adelaide (Southern Australia) IST + 4 hrs. Brisbane, Sydney, Canberra, Melbourne (Eastern States) & Hobart IST + 4.5 hrs. Except for Western Australia, there is an additional one hour difference during summer.

COMPANIES IN AUSTRALIA
1. Companies in Australia are governed by the Corporation Law of Australia (the Law) and are considered as separate legal entities in their own right, as compared with the shareholders and directors of the company. 2. The difference between public and proprietary companies is that public companies may raise funds through the issue of share to the public. 3. Public companies must have at least 5 shareholders and 3 directors and are generally larger than proprietary companies. 4. To incorporate a new company, first choose and then reserve the name of the company. The name cannot be substantially identical to an existing company. Company name may be reserved for a period of two months. Upon registration of the company, an Australian Company Number (ACN) will be allocated. 5. At least one director must reside in Australia. The company secretary must also reside in Australia, however, a person may act both as director and as company secretary. 6. It is a requirement that the company advise the Australian Securities Commissioner (ASC) of its registered address and the names of the company directors and secretaries. 7. After lodging the application from with the prescribed fee the ASC will issue a Certificate of Incorporation.

8. Upon the appointment of the director(s), the company may commence operations. 9. Each year the company must lodge an annual return with the ASC by 31st January of the following year. 10. All company records must be kept at the registered office of

the company. Failure to comply may result in a fine or imprisonment, or both. 11. The rules, which apply to companies, differ depending on

their size and status Additional requirements apply to large proprietary companies and all public companies. The additional requirements include:

Preparing profit and loss accounts and a balance sheet for each financial year

Appointing an auditor to audit the companys financial statements

Lodging the financial statements with the ASC within foru months of the end of the financial year; and

The holding of an Annual General Meeting at least once in every calendar year.

INDIA AUSTRALIA TRADE SCENE

1. The creation of trade blocs all over the world makes in imperative to strive towards enhanced regional co-operation, building upon the regions strengths and complementaries. The move towards forming the Indian Ocean Rim bloc, in which both India and Australia are expected to be major players, is a welcome step in this direction. 2. The trade basket between India and Australia is confined to a limited number of items. This can be viewed in the context of Indias capabilities, and the vast scope for increasing as well as balancing the trade which continues to remain in Australias favour. 3. Indias main exports consists of coffee, cashew, leather goods, gems & jewellery, manufacturing of metals, machinery and instruments, cotton yearn, fabrics and made ups, ready-mage garments. 4. Indias main imports from Australia are pulses, raw wool, mataliferrous ores and metals scrap, non-ferrous metals, gold and silver, non-electric machinery, electronic goods, computer software from Australia. 5. There is very good scope for increasing exports to Australia of items like computer software and hardware, office machinery, electrical machinery, textiles, engineering items, gem & jewellery, chemicals and pharmaceuticals, processed foods etc. 6. India can import from Australia items like steel,

telecommunication equipment, power equipments, agricultural produce, paints, precious and semi-precious stones etc.

There is good scope of joint venture between India and Australia in the field of food processing and packaging equipments, oil and natural gas explorations and development minerals, telecommunications, computer software, power generations etc.

AIM OF THE STUDY

To identify product niches in which promotional effort is required, impressing upon the trade potential in Australia and the benefits to the exporters.

OBJECTIVES/SCOPE OF THE STUDY

The broad objectives of the report can be laid down in the following form: 1. To provide information on the fashion styles of the Australian market. 2. To have a comparative analysis of Indias strength and weakness on which base it can compete in the world market and identify other competitors and also recommend a marketing strategy for building effective dimensions in the garment trade.

PROBLEMS DEFINITION / HYPOTHESIS

The study is intended to find the export potential of Indian Ready-made garments to Australia, to reveal present pattern and possible future developments of supply, demand and consumption in relevant product specific markets.

STATEMENT ABOUT THE PROBLEM

WHY IS THE PARTICULAR TOPIC CHOSEN ? Because Indias main imports from Australia are pulses, raw wool, mataliferrous ores and metals scrap, non-ferrous metals, gold and silver, non-electric machinery, electronic goods, computer software from Australia. There is very good scope for increasing exports to Australia of items like computer software and hardware, office machinery, electrical machinery, textiles, engineering items, gem & jewellery, chemicals and pharmaceuticals, processed foods etc.

WHAT CONTRIBUTION WOULD THE PROJECT MAKE ? My project will make great contribution towards changing fashion scenario with their exposure to world markets.

METHODOLOGY

1.

Type of Research The research type will be Exploratory and descriptive research.

2.

Selection of sampling procedure or Sampling plan

Collection of Data Primary Data : Primary data will be generated from individuals, so

questionnaire will be used to provide orderly and structured approach to data gathering. Secondary Data : Sources through which the secondary data will be collected are: Export promotion Council Information from Internet Information from Journals Information from Magazines sand Newspapers

CHAPTERISATION
Introduction Objective Australia Profile Comparative Economic Indicators India & Australia Export to Australia Export Benefits Duty Drawback rates on Readymade Garments Price and Payments Terms Australias Import Regime Why Australia? Australian market for Apparel Distribution aspects in Australia Strategies for Successful Garment Exports Indian Garment Exports; Strategic Gaps and their Elimination Tips for Persons Landing in Australia Swot Analysis Conclusions; Suggestions & Recommendations Suggestions to the Government Bibliography

BIBLIOGRAPHY

1. Australia -New Zealand A study of Indias Trade & Investment Potential. 2. Garment Exports A Guide Apparel Export Promotion Council, Registered Office: NBCC Tower, 15, Bhikaji Cama Place,

New Delhi-66. 3. Handbook of Export Statistics Apparel Export Promotion Council, Registered Office: NBCC Tower, 15, Bhikaji Cama Place,

New Delhi-66 4. In the National Interest Australias Foreign & Trade Policy White Paper 5. India Australia Limitless Opportunities, CII Lodhi Road, New Delhi. 6. Report on Buyer Seller meets at Australia & New Zealand.

7. www.australia.com