Garment industry

An overview of indian garment industry.

1. GARMENT INDUSTRY INDIA IN THE WORLD SCENARIO Presented By- Poulomi Sen TCFS 2 nd Year Roll No: 26

2. Indian Garment Industry- A budding leader of Indian Economy

3. * India's Garment Industry is a well-organized enterprise and is among the best in the world. It constitutes of designers, manufacturers, exporters, suppliers, stockiest, and wholesalers. Indian Garment Industry has carved out a niche in the global markets and earned a reputation for its durability, quality and beauty. * A huge industry growing at the rate of 30% per annum. * Distributed equally across all major cities of India. * It has an output of about 7% of total industrial production. * Market capitalization is at a rate of 20% per annum. An Overview on the Industry- An Introduction

4. * The Garment Industry is of major importance to the Indian economy as it contributes substantially to India's export earning. * The annual plan for 2007-08 formulated by Indian government to promote the textile sector, includes schemes for attracting foreign direct investments, brand promotion through public-private partnership (PPP) for global acceptance of Indian brands, trade centers for facilitating business and image building, fashion hubs as a stable marketplace for Indian fashion, common compliance code for creating apparel standards for the benefit of buyers, and training centers for developing human resources.

5. * The garment industry accounts for 14% of industrial production, which is 4% of GDP and employs 45 million people and accounts for nearly 11% share of the country’s total exports basket. * India’s exports of Textiles and Clothing together clubbed as garments is pegged at USD 64.41 billion by the end of March, 2017. * During the year 2012-13, Garments accounted for almost 39% of the total textile exports. * Exports of garment products from India have increased steadily over the last few years, particularly after 2004 when textiles exports quota was discontinued. * The total textile exports during 2012-13 was valued at Rs 137619.44 crore as against Rs 129829.30 crore during the corresponding period of financial year 2011-12, registering an increase of 6.00 percent in rupee terms. INDIAN garment industry AT a glance in 2012 - 2013

6. 1. Today the textile and garments industry plays a significant role in the economy. 2. It is one of the largest and the most important sectors of Indian economy in terms of output, foreign exchange earnings and employment. 3. The sector employs 35 million persons. Of this, textile segment alone accounts for 29 million and the clothing industry accounts for the remaining 6 million people. 4. In fact it is the second largest employer in the economy after agriculture. 5 . It contributes nearly 20 per cent to the country’s total export earnings. TODAY’S SENARIO

7. * Indian garment industry is amongst the top players in terms of export ( Currently in the 2 nd Position) * Main competitors are Bangladesh & China. * Bulk of India’s exports go to the US, Canada and the European Union. * Indian exports have become competitive, thanks partly to the government’s restrictions on exports of cotton and cotton yarn which lowered the raw material prices. * Texport Syndicate India Limited CEO & Director Avinash Misar says that “If India can grab 10 per cent of China’s business, Indian apparel exports will double to $20 billion in coming years,” Indian Garment Industry- A focus on export issues

8. STRENGHTS 1. Advantages of Mass availability of Raw Materials 2. Advantage of cheap labour cost. 3. Rich cultural heritage provides a mass inspiration. 4. High capability of India in product development. SWOT ANALYSIS OF Indian Garment Industry

9. Weakness 1. Unavailability of State of the art Technology & infrastructure. 2. Improper policies of Government leading to backlogs in mass export.

10. Opportunities 1. Climbing wage rates of ASEAN & ASIAN countries. 2. Since buyers are looking at alternative markets for sourcing, India has greater chance because our country is democratic and economically and socially stable. 3. Removal of Quota Constraints & arrival of MFA (Multi- Fiber Arrangement ) gave rise to innumerable opportunities posing a great advantage to India.

11. THREATS 1. Immense price pressure. 2. Different bodies like Cotton Corporation, Indian Textiles and AEPC should sit together and formulate the right strategy rather than each pulling in different directions. The government should formulate a structured approach as garments is a complex supply-chain industry. 3. Low availability of skilled manpower. 4. Garments exports do not have large profit margins, investments from private entrepreneurs are low and this is why this industry has not grown much in India compared to many countries.

12. Marketing of the Garment Industry Opening of the globalised markets have increased opportunities for many ASEAN & ASIAN Countries. Proper policies of the Government will aid to enhanced market for India in the globalised market. Wide range of fabrics, huge labour investment are baring essentials for creating a niche in the world market. Extensive promotional policies, wide use of marketing tools are very essential as Bangladesh, Vietnam etc are posing very important threats for the Indian market.

13. CONCLUSION India is in a very good position in terms of Garment Industry (Marketing , Export etc). The Government should allow various open rules so that extensive business could be carried out. Our country should not bask in the glory of being a budding leader but should strive to be the BEST as we have an ocean full of resources & opportunities.