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Indian Textile Industry SWOT Analysis

The Indian Textile Industry The Indian textile industry is one of the leading textile industries in the world. Though it used to come under unorganized sector few years back, the scenario changed dramatically after the economic liberalization of the Indian economy. Liberalisation gave the muchneeded push to the textile industry, which has now successfully become one of the largest in the world.As per the last statistics available from the Annual Report 2009-10 of the Ministry of Textiles, The Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to the countrys gross domestic product (GDP) and 17 per cent to the countrys export earnings. Additionally, it provides direct employment to over 35 million people and is the second largest provider of employment after agriculture. The report further says The current domestic market of textile in India is expected to increase up to US$ 60 billion by 2012 from the current US$ 34.6 billion. The share of exports is also expected to increase from 4% to 7% within 2012. Textile Accessories are also an important part of this segment. Strengths of the Indian Textile Industry Indias biggest strength lies in its big pool of cheap and talented workforce. However, apart from it there are few other important factors which contributes to its strength like

Huge Domestic Market consumption (due to its own population). Tremendous Export Potential (Indian products are in great demand among the western importers) The new age creative and risk taking entrepreneurs. Use of latest technology which produces high quality multi-fiber raw material. Supportive government policies.

The Indian Textile Industry has its fair share of weakness like:

The increased global competition due to WTO policies. Use of outdated manufacturing technology from the low end suppliers. Inefficient supply chain management. Additionally, this sector is still unorganized at many levels and needs a lot of government reforms for further improvisation.

Opportunities The western countries are now setting up their manufacturing units in India which single handedly opens up a wide array of possibilities for all the stakeholders within the textile industry.

Experts believe that the golden era of Chinese textile and apparel exports is over and the production base of global textiles is gradually shifting from China to India, Pakistan and other low cost destinations. Threats: Even though experts claim that China is past its glorious days, still one cannot afford to take china lightly and has to keep in mind the capability of Chinese exporters to supply quality products at cheap prices. Indian textile exporters cannot afford complacency and need to be on their toes for any changes within the international trade community. Final Thought: Global textile production has witnessed the growth of an astounding 25 percent (including the Textile Accessories ) in the last decade. Asian markets will continue to spearhead the growth of the textile industry in the years to come and the textile industry could go beyond the current $500 billion mark any time soon.

Make Huge income at Home Sign Up to XForex And Learn How To Increase Your Monthly Income. www.xforex.com Strengths:
1. Indian Textile Industry is an Independent & Self-Reliant industry. 2. Abundant Raw Material availability that helps industry to control costs and reduces the lead-time across the operation. Related Articles Indian textile and apparel industry surging ahead What Role Does Textile Industry Plays in Indian Economy? Indian Art and Craft Industry- an Overview Recent Development in Textile and Other Industries in India 3. Availability of Low Cost and Skilled Manpower provides competitive advantage to industry. 4. Availability of large varieties of cotton fiber and has a fast growing synthetic fiber industry. 5. India has great advantage in Spinning Sector and has a presence in all process of operation and value chain.

6. India is one of the largest exporters of Yarn in international market and contributes around 25% share of the global trade in Cotton Yarn. 7. The Apparel Industry is one of largest foreign revenue contributor and holds 12% of the country's total export. 8. Industry has large and diversified segments that provide wide variety of products. 9. Growing Economy and Potential Domestic and International Market. 10. Industry has Manufacturing Flexibility that helps to increase the productivity. Weaknesses: 1. Indian Textile Industry is highly Fragmented Industry. 2. Industry is highly dependent on Cotton. 3. Lower Productivity in various segments. 4. There is Declining in Mill Segment. 5. Lack of Technological Development that affect the productivity and other activities in whole value chain. 6. Infrastructural Bottlenecks and Efficiency such as, Transaction Time at Ports and transportation Time. 7. Unfavorable labor Laws. 8. Lack of Trade Membership, which restrict to tap other potential market. 9. Lacking to generate Economies of Scale.
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10. Higher Indirect Taxes, Power and Interest Rates. Opportunities: 1. Growth rate of Domestic Textile Industry is 6-8% per annum. 2. Large, Potential Domestic and International Market. 3. Product development and Diversification to cater global needs. 4. Elimination of Quota Restriction leads to greater Market Development. 5. Market is gradually shifting towards Branded Readymade Garment. 6. Increased Disposable Income and Purchasing Power of Indian Customer opens New Market Development. 7. Emerging Retail Industry and Malls provide huge opportunities for the Apparel, Handicraft and other segments of the industry. 8. Greater Investment and FDI opportunities are available. Threats: 1. Competition from other developing countries, especially China. 2. Continuous Quality Improvement is need of the hour as there are different demand

patterns all over the world. 3. Elimination of Quota system will lead to fluctuations in Export Demand. 4. Threat for Traditional Market for Powerloom and Handloom Products and forcing them for product diversification. 5. Geographical Disadvantages. 6. International labor and Environmental Laws. 7. To balance the demand and supply. 8. To make balance between price and quality. To get more insight on Indian Textile Industry visit www.india-crafts.com

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List of Textiles Companies in India


A
Aarvee Denims & Exports LtdAbhishek Corporation LtdAcil Cotton Inds LtdAcknit Knitting LtdAcrow India Ltd.Addi Industries LtdAdinath Textiles LtdAlchemist Corporation LtdAlka India LtdAlok Industries LimitedAlpha Graphic India LtdAlps Industries LtdAmbika Cotton Mills LtdAmit International Ltd.Anjani Synthetics LtdAPM Industries LtdArex Industries LtdArrow Textiles LtdArunoday Mills Ltd.Arvind Mills LimitedArvind Products LtdAsahi Fibres Ltd.Ashima LtdAshnoor Textile Mills LtdAunde Faze Three LtdAV Cottex LtdAviva Industries Ltd

B
B&B Realty LtdBafna Spinning Mills & Exports LtdBala Techno Synthetics LtdBang Overseas LtdBannari Amman Spinning Mills LtdBaroda Rayon Corpn. LtdBengal Tea & Fabrics LtdBhandari Hosiery Exports LtdBhandari Udhyog LtdBhilwara Spinners LtdBhilwara Tex-Fin LtdBholanath International LtdBijlee Textiles LtdBinayak Tex Processors LtdBinny LtdBirla Cotsyn (India) LtdBlack Rose Inds. LtdBlue Chip Tex Inds. LtdBombay Burmah Trdg. Corpn. Ltd.Bombay Rayon Fashions LimitedBSL Ltd

C
Ceenik Exports (India) LtdCeeta Industries LtdCelebrity Fashions LtdCentury Enka LimitedCentury Textiles & Industries. Ltd.Chandni Textiles LtdCheviot Company LtdChhabra Spinners LtdConsolidated Fibres & Chemicals LtdCT Cotton Yarn Ltd.

D
DCM Ltd.Deepak Spinners LtdDhanlaxmi Cotex LtdDhar Textile Mills LtdDonear Industries Ltd

E
Eastern Silk Inds. Ltd.Ennore Coke LtdEnterprise International LtdEskay K'N'It (India) LtdEverlon Synthetics LtdEvinix Accessories Ltd

F
Fairdeal Filaments LtdFaze Three LtdFilaments India LtdFilatex Fashions LtdFilatex India LtdFirst Winner Industries LtdFutura Polyesters Ltd

G
Ganesh Polytex LtdGarden Silk Mills LimitedGarlon Polyfab Inds. LtdGarware Synthetics LtdGarware-Wall Ropes LtdGinni Filaments LtdGloster Jute Mills LtdGokak Textiles LtdGokaldas Exports LimitedGolden Carpets LtdGrabal Alok Impex LtdGravity (India) LtdGTN Industries LtdGTN Textiles LtdGujarat Cotex LtdGupta Synthetics Ltd

H
Hanil Era Textiles LtdHanjer Fibres LtdHaria Exports LtdHaryana Texprints (Overseas) LtdHimatsingka Seide LtdHinafil India LtdHindoostan Spinning & Wvg. Mills Ltd.House Of Pearl Fashions LtdHytone Texstyles Ltd

I
Ideal Carpets LtdIndian Acrylics LtdIndian Card Clothing Company LtdIndo Rama Synthetics (India) LimitedIndus Fila LtdInternational Hometex Ltd

J
Jagjanani Textiles LtdJaihind Synthetics LtdJamshri Ranjitsinghji Spg. & Wvg. Mills Company LtJanice Textiles LtdJaybharat Textiles & Real Estate LtdJBF Industries LtdJCT LimitedJindal Cotex Ltd.JJ Exporters LtdJK Synthetics LtdJyoti Overseas Ltd

K
Kallam Spinning Mills LtdKanco Enterprises LtdKapil Cotex LtdKaran Woo-Sin LtdKarma Ispat LtdKatare Spinning Mills Ltd.Ken Financial Services LtdKesoram Industries Ltd.Kewal Kiran Clothing LtdKG Denim LtdKnitworth Exports LtdKonark Synthetic LtdKothari Industrial Corpn. LtdKPR Mill LtdKrishna Lifestyle Technologies LtdKSL & Industries LtdKuvam International Fashions Ltd

L
Lakshmi Machine Works LtdLakshmi Mills Company Ltd.Lambodhara Textiles Ltd.Lloyd Rockfibres LtdLN Polyesters LtdLoyal Textile Mills LtdLS Inds LtdLudlow Jute & Specialities Ltd

M
Mafatlal Industries LtdMaharaja Shree Umaid Mills LtdMahendra Petrochemicals LtdMaikaal Fibres LtdMalwa Cotton Spg. Mills Ltd.Mangalam Ventures LtdMaris Spinners Ltd.Mavi Industries LtdMaxwell Industries LtdMH Mills & Inds. LtdMid India Inds. LtdMinaxi Textiles LtdMK Exim (India) LtdModern India Ltd.Mohit Industries LtdMorarjee Textiles LtdMPIL Corpn. LtdMudra Lifestyle Ltd

N
Nachmo Knitex LtdNahar Industrial Enterprises LtdNahar Poly Films LtdNahar Spinning Mills LtdNational Aluminium Company LtdNirlon LtdNiryat-Sam Apparels (India) LtdNitin Spinners LtdNova Petrochemicals LtdNumech Emballage LtdNutech Global Ltd.

O
Oasis Finvest LtdOmnitex Industries (India) LtdOrbit Exports LtdOswal Spinning & Wvg. Mills LtdOswal Yarns LtdOxford Industries Ltd

P
Pacific Cotspin LtdPadam Cotton Yarns Ltd.Page Industries LtdPasupati Acrylon LtdPasupati Fabrics LtdPasupati Spinning & Wvg. Mills Ltd.Patspin India LtdPBM Polytex LtdPioneer Embroideries LtdPoddar Developers LtdPolypro Fibrils (India) Ltd.Prag Bosimi Synthetics LtdPrakash Woollen Mills LtdPranavaditya Spinning Mills LtdPrecot Meridian LtdPremco Global LtdPunjab Woolcombers Ltd

R
Raghuvir Synthetics Ltd.Rai Saheb Rekhchand Mohota Spg. & Wvg. Mills LtdRainbow Denim LtdRajapalayam Mills LtdRajasthan Polyesters LtdRajvir Industries LtdRaymond LimitedReliance Chemotex Inds. Ltd.Riba Textiles LtdRicha Industries LtdRLF LtdRM Mohite Textiles LtdRosekamal Textiles LtdRSWM LtdRuby Mills Ltd.

S
S Kumars Nationwide LtdS&Y Mills LtdSalona Cotspin LtdSangam (India) LtdSanghi Polyesters LtdSanrhea Technical Textiles LtdSantaram Spinners Ltd.Santogen Exports LtdSantosh Fine-Fab LtdSarita Synthetics & Inds. LtdSarla Performance Fibres LtdSchlafhorst Engineering (India) LtdSeasons Textiles LtdSEL Manufacturing Company LtdShamken Cotsyn LtdShamken Multifab LtdShamken Spinners LtdShiva Texyarn LtdShree Ram Urban Infrastructure Ltd.Shri Ganesh Spinners LtdShri Lakshmi Cotsyn LtdSiddheswari Garments LtdSilktex LtdSirdar Carbonic Gas Company LtdSNS Textiles LtdSpectacle Industries LtdSpenta International LtdSpice Islands Apparels LtdSPL Industries LtdSR Industries LtdSree Jayalakshmi Autospin LtdSri Jayalakshmi Spg. Mills LtdSRM Energy LtSTI India LtdSTL Global Ltd.Stovec Industries LtdSubhash Silk Mills LtdSumeet Industries LtdSun Polytron Inds. LtdSuncity Synthetics LtdSunday Exports LtdSuper Sales India LtdSuper Syncotex (India) Ltd.Supertex Industries LtdSupreme Tex Mart LtdSurat Textile Mills LtdSuryaamba Spinning Mills Ltd.Suryalata Spinning Mills LtdSuryavanshi Spinning Mills LtdSutlej Textiles & Inds. LtdSwan Energy LtdSwasti Vinayaka Synthetics LtdSybly Industries Ltd.

T
Tai Chonbang Textile Inds. LtdThambbi Modern Spg. Mills LtdThe Bombay Dyeing and Manufacturing Company LimiteTT Ltd

U
Unimin India LtdUniproducts (India) LtdUnited Interactive Ltd.Unitex Designs LtdUniworth LtdUniworth Textiles Ltd.

V
Valson Industries LtdVardhman Acrylics LtdVardhman Polytex LtdVardhman Textiles LimitedVeejay Lakshmi Engg. Works LtdVentura Textiles LtdVeritas (India) LtdVertex Spinning LtdVictoria Mills Ltd.Vijay Textiles LtdVijayeswari Textiles LtdVippy Spinpro LtdVirat Industries LtdVishal Cotspin LtdVogue Textiles LtdVolant Textile Mills LtdVTM LtdVyapar Industries Ltd

W
Weizmann LtdWelspun India LimitedWelspun Syntex LtdWestern India Cottons LtdWheel & Axle Textiles LtdWhite House Cotton Inds. LtdWinsome Textile Inds. LtdWinsome Yarns Ltd

Y
Yarn Syndicate Ltd

Z
Zenith Fibres Ltd
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sss INTRODUCTION The Indian textile industry has a significant presence in the economy as well as in the international textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. It contributes 20 percent of industrial production, 9 percent of excise collections, 18 percent of employment in the industrial sector, nearly 20 percent to the countrys total export earning and 4 percent to the Gross Domestic Product. In human history, past and present can never ignore the importance of textile in a civilization decisively affecting its destinies, effectively changing its social scenario. A brief but thoroughly researched feature on Indian textile culture. HISTORY OF TEXTILE INDUSTRY India has been well known for her textile goods since very ancient times. The traditional textile industry of India was virtually decayed during the colonial regime. However, the modern textile industry took birth in India in the early nineteenth century when the first textile mill in the country was established at fort gloster near Calcutta in 1818. The cotton textile industry, however, made its real beginning in Bombay, in 1850s. The first cotton textile mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in overseas and internal trade. Indeed, the vast majority of the early mills were the handiwork of Parsi merchants engaged in yarn and cloth trade at home and Chinese and African markets. The first cotton mill in Ahmedabad, which was eventually to emerge as a rival centre to Bombay, was established in 1861. The spread of the textile industry to Ahmedabad was largely due to the Gujarati trading class. The cotton textile industry made rapid progress in the second half of the nineteenth

century and by the end of the century there were 178 cotton textile mills; but during the year 1900 the cotton textile industry was in bad state due to the great famine and a number of mills of Bombay and Ahmedabad were to be closed down for long periods. The two world War and the Swadeshi movement provided great stimulus to the Indian cotton textile industry. However, during the period 1922 to 1937 the industry was in doldrums and during this period a number of the Bombay mills changed hands. The second World War, during which textile import from Japan completely stopped, however, brought about an unprecedented growth of this industry. The number of mills increased from 178 with 4.05 lakh looms in 1901 to 249 mills with 13.35 lakh looms in 1921 and further to 396 mills with over 20 lakh looms in 1941. By 1945 there were 417 mills employing 5.10 lakh workers. The cotton textile industry is rightly described as a Swadeshi industry because it was developed with indigenous entrepreneurship and capital and in the pre-independence era the Swadeshi movement stimulated demand for Indian textile in the country. The partition of the country at the time of independence affected the cotton textile industry also. The Indian union got 409 out of the 423 textiles mills of the undivided India. 14 mills and 22 per cent of the land under cotton cultivation went to Pakistan. Some mills were closed down for some time. For a number of years since independence, Indian mills had to import cotton from Pakistan and other countries. After independence, the cotton textile industry made rapid strides under the Plans. Between 1951 and 1982 the total number of spindles doubled from 11 million to 22 million. It increased further to well over 26 million by 1989-90. CURRENT POSSITION OF TEXTILE INDUSTRY IN INDIA Textile constitutes the single largest industry in India. The segment of the industry during the year 2000-01 has been positive. The production of cotton declined from 156 lakh bales in 1999-2000 to 1.40 lakh bales during 2000-01. Production of man-made fibre increased from 835 million kgs in 1999-2000 to 904 million kgs during the year 2000-01 registering a growth of 8.26%. The production of spun yarn increased to 3160 million kgs during 2000-01 from 3046 million kgs during 1999-2000 registering a growth of 3.7%. The production of man-made filament yarn registered a growth of 2.91% during the year 1999-2000 increasing from 894 million kgs to 920 million kgs. The production of fabric registered a growth of 2.7% during the year 1999-2000 increasing from 39,208 million sq mtrs to 40,256 million sq mtrs. The production of mill sector declined by 2.6% while production of handloom, powerloom and hosiery sector increased by 2%, 2.7% and 5.1% respectively. The exports of textiles and garments increased from Rs. 455048 million to Rs. 552424 million, registering a growth of 21%. Growth in the textile industry in the year 2003-2004 was Rs. 1609 billion. And during 2004-05 production of fabrics touched a peak of 45,378 million squre meters. In the year 2005-06 up to November, production of fabrics registered a further growth of 9 percent over the corresponding period of the previous year.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 With the growing awareness in the industry of its strengths and weakness and the need for exploiting the opportunities and averting threats, the government has initiated many policy measures as follows. The Technology Upgradation Fund Scheme (TUFS) was launched in April 99 to provide easy access to capital for technological upgradation by various segments of the Industry. The Technology Mission on Cotton (TMC) was launched in February 2000 to address issues relating to the core fibre of Cotton like low productivity, contamination, obsolete ginning and pressing factories, lack of storage facilities and marketing infrastructure A New Long Term Textiles and Garments Export Entitlement (Quota) Policies 2000-2004 was announced for a period of five years with effect from 1.1.2000 to 31.12.2004 covering the remaining period of the quota regime. In the current year Budget 2006-2007 states the measures for Textile Industry as follows Allocation to the Technology Upgradation Fund (TUF) enhanced from Rs4.4bn to Rs 5.4bn. Provision for the interest subsidy on term loans to the handloom sector to be increased from Rs2.0bn to Rs 2.4bn. Rs1.9 bn to be provided for the scheme for integrated Textiles Parks (launched in October 2005 with the intention of creating 25 textile parks) Excise duty on all man-made fibre yarn and filament yarn to be reduced from 16% to 8% Import duty on all man-made fibers and yarns to be reduced from 15% to 10%. FUTURE PROSPECTS: The future outlook for the industry looks promising, rising income levels in both urban and rural markets will ensure a rising market for the cotton fabrics considered a basic need in the realm of new economic reforms (NER) proper attention has been given to the development of the textiles industry in the Tenth plan. Total outlay on the development of textile industry as envisaged in the tenth plan is fixed at Rs.1980 crore. The production targets envisaged in the terminal year of the Tenth plan are 45,500 million sq metres of cloth 4,150 million kg of spun yarn and 1,450 million kg of man made filament yarn. The per capita availability of cloth would be 28.00 sq meters by 2006-2007 as compared to 23.19 sq meters in 2000-01 showing a growth of 3.19 percent. The export target of textiles and apparel is placed at $32 billion by 2006-2007 and $50 billion by 2010. Vision India 2010 for Textiles Textile economy to grow to $ 85 bn. by 2010. Creation of 12 million new jobs in Textile Sector. To increase Indias share in world trade to 6% by 2010. Achieve export value of $ 40 Billion by 2010. Modernisation and consolidation for creating a globally competitive industry. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

STRUCTURE OF INDIAS TEXTILE INDUSTRY The textile sector in India is one of the worlds largest. The textile industry today is divided into three segments: 1. Cotton Textiles 2. Synthetic Textiles 3. Other like Wool, Jute, Sil PROBLEM FACED BY THE TEXTILE INDUSTRY IN INDIA The cotton textile industry is reeling under manifold problems. The major problems are the following: Sickness: Sickness is widespread in the cotton textile industry. After the engineering industry, the cotton textile industry has the highest incidence of sickness. As many as 125 sick units have been taken over by the Central Government. Sickness is caused by various reasons like the problems mentioned below. Obsolescence: The plant and machinery and technology employed by a number of units are obsolete. The need today is to make the industry technologically up-to-date rather than expand capacity as such. This need was foreseen quite sometime back and schemes for modernisation of textile industry had been introduced. The soft loan scheme was introduced a few years back and some units were able to take advantage of the scheme and modernise their equipment. However, the problem has not been fully tackled and it is of utmost importance that the whole industry is technologically updated. Not many companies would be able to find resources internally and will have to depend on financial institutions and other sources. Government Regulations: Government regulations like the obligation to produced controlled cloth are against the interest of the industry. During the last two decades the excessive regulations exercised by the government on the mill sector has promoted inefficiency in both production and management. This has also resulted in a colossal waste of raw materials and productive facilities. For example, the mills are not allowed to use filament yarn in warp in order to protect the interest of art silk and powerloom sector which use this yarn to cater to the affluent section of society. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 k etc. Low Yield and Fluctuation of Cotton Output: The cotton yield per hectare of land is very low in India. This results in high cost and price. Further, being largely dependent on the climatic factors, the total raw cotton production is subject to wide fluctuation causing serious problems for the mills in respect of the supply of this vital raw material.

Competition from Man-made Fibres: One of the serious challenges facing the cotton textile industry is the competition from the man-made fibres and synthetics. These textures are gradually replacing cotton textiles. This substitution has in fact been supported by a number of people on the ground that it is not possible to increase substantially the raw cotton production without affecting other crops particularly food crops. Competition from other Countries: In the international market, India has been facing severe competition from other countries like Taiwan, South Korea, China and Japan. The high cost of production of the Indian industry is a serious adverse factor. Labour Problems: The cotton textile industry is frequently plagued by labour problems. The very long strike of the textile workers of Bombay caused losses amounting to millions of rupees not only to the workers and industry but also to the nation in terms of excise and other taxes and exports. Accumulation of Stock: At times the industry faces the problems of very low off take of stocks resulting in accumulation of huge stocks. The situation leads to price cuts and the like leading to loss or low profits. Miscellaneous: The industry faces a number of other problems like power cuts, infrastructural problems, lack of finance, exorbitant rise in raw material prices and production costs etc. EXPORT AT GLANCE: Textile exports plays a crucial role in the overall exports from India.Throught export friendly government policies and positive efforts by the exporting community, textile exports increased substantially from US$ 5.07 billion in 1991-92 to US$ 12.10 billion during 2000-01. The textile export basket contributing over 46 percent of total textile export. In world textile trade has risen to 3.1 percent in 1999-2000 as against 1.80 percent in early nineties. Exports have grown at an average of 11 percent per annum over the last few years, while world textile trade has grown only about 5.4 per cent per annum in the same years. During INVESTMENT IN TEXTILE INDUSTRY Investment is the key for Indian textiles to make rapid strides. The Vision Statement prepared by the Indian Cotton Mills federation has projected that the industry has the potential to reach a size of $85 billion by 2010 from the current level of $ 36 billion. Further, the vision statement has estimated that textile exports could touch $40 billion by 2010 from $ 11 billion in 2002. In the process, Indias share in the global textile and

clothing trade is expected to double from three percent in 2002 to six percent by 2010. To reach these these ambitious target, it is estimated that new investment to the tune of Rs.1, 40,000 crores will be needed in the next five years. After analysing the capacity and technology levels in various segments of textile Industry and the need for modernisation, funds required for various segments have been below.

SWOT ANALYSIS OF INDIAN TEXTILE INDUSTRY Indian textile industry has several Strengths Abundant Raw Material Availability Low Cost Skilled Labour Presence across the value-chain Growing Domestic Market Indian textile industry has several Weaknesses Fragmented industry Effect of Historical Government Policies Lower Productivity and Cost Competitiveness Technological Obsolescence

Indian textile industry has several Opportunities Post 2005 challenges Research and Development and Product Development Indian textile industry has several Threats Competition in Domestic Market Ecological and Social Awareness Regional alliances Strengths Abundant Raw Material Availability: Allowing the industry to control cost and reduce over all lead-times across the value chain. Low Cost Skilled Labour Low cost skilled labour providing a distinct competitive advantage for the industry. Presence across the value-chain Presence across the value-chain providing a competitive advantage when compared to countries likes Bangladesh, Srilanka, who have developed primarily as garmenters. Reduced Lead-times: Manufacturing capacity present across the entire product range, enabling textile companies and garmenters do source their material locally and reduce lead-time. Super Market: Ability to satisfy customer requirements across multiple product grades- small and large lot sizes specialized process treatments etc. Growing Domestic Market Growing Domestic market which could allow manufacturers to mitigate risks while allowing them to build competitiveness. Weaknesses Fragmented industry Fragmented industry leading to lower ability to expand and emerge as world-class players. Effect of Historical Government Policies Historical regulations thought relaxed continue to be an impediment to global competitiveness. Lower Productivity and Cost Competitiveness

Labour force in India has a much lower productivity as compared to competing countries like china, Srilanka etc. The Indian industry lacks adequate economies of scale and is therefore unable to compete with china, and other countries etc. Cost like indirect takes, power and interest are relatively high. Technological Obsolescence Large portion of the processing capacity is obsolete While state of the art integrated textile mills exist majority of the capacity lies currently with the powerloom sector. This has also resulte Opportunities Post 2005 challenges During the year 2005 is a huge opportunity that needs to be capitalised. Research and Development and Product Development Indian companies needs to increase focus on product development. Newer specialized fabric- smart Fabrics , specialized treatement etc. Faster turn around times for design samples Investing in design centers and sampling labs. Increased use of CAD to develop designing capability in the Organisation and developing greater options. Investing in trend forecasting to enable growth of the industry in India. Threats Competition in Domestic Market Competition is not likely to remain just in the exports space, the industry is likely to face competition from cheaper imports as well. This is likely to affect the domestic industry and may lead to increased consolidation. Ecological and Social Awareness Development in the form of increased consumer consciousness on issues such as usage of child labour unhealthy working conditions etc. The Indian industry needs to prepare for the fall out of such issues by issues by improving its working practices. Regional alliances Reginal trade blocs play a significant role in the global garment industry with countries enjoying concessional tariffs by virtue of being members of such blocs/ alliances.

Indian industry would need to be prepared to face the fall out of the post 2005 scenarious in the form of continued barriers for imports. CONCLUSION: The Indian textile industry is currently one of the largest and most important sector in the economy interms of output foreign exchange earnings and employment in India. The Textile industry has the potential to scale new height in the globalized economy. The textile industry in India has gone through significant charges in anticipation of increased international competition. The industry is facing numerous problems and among them the most important once are those of liquidity for many organized sector units, demand recession and insufficient price realization. The long-range problems include the need for sufficient modernisation and restructuring of the entire industry to cater more effectively to the demands of the domestic and foreign markets for textiles as per the needs of today and tomorrow. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 d in low value addition in the industr