SWOT analysis INDIAN textile.

SWOT analysis INDIAN textile.

1. SWOT analysis of Indian textile industry

2. SWOT  analysis of Indian Apparel & Textile Industry The Indian Textile industry adds 14% to the industrial production and 8% to the GDP of India. It provides employment to 38 million people and thus, is the second largest employment provider after agriculture. The Indian Apparel & Textile Industry is one of the largest sources of foreign exchange flow into the country with the apparel exports accounting for almost 21% of the total exports of the country. A systematic SWOT analysis of the textile and apparel industry indicates the following:-

3. STRENGTH Raw material base India has high self sufficiency for raw material particularly natural fibres. India’s cotton crop is the third largest in the world. Indian textile Industry produces and handles all types of fibres.   Labour Cheap labour and strong entrepreneurial skills have always been the backbone of the Indian Apparel and textile Industry. Flexibility The small size of manufacturing which is predominant in the apparel industry allows for greater flexibility to service smaller and specialized orders.

4. Rich Heritage The cultural diversity and rich heritage of the country offers good inspiration base for designers. Domestic market Natural demand drivers including rising income levels, increasing urbanisation and growth of the purchasing population drive domestic demand.

5. WEAKNESS More dependence on cotton Due to over specialization in cotton, the bulk of the international market is missed out, synthetic products in India are expensive and fabric required for items like swimsuit, sky-wear and industrial apparel is relatively unavailable. Spinning Sector Spinning sector lacks modernization and there is a need of introducing new technology. Weaving Sector India has relatively less number of shuttle-less loom.

6.   Fabric Processing Processing is the weakest link in the Indian textile value chain, adversely affecting its ability to compete in exports. Poor Infrastructure High power costs and long export lead times are eroding India’s export competitiveness across the textile chain. Low Labour Productivity Productivity levels for manufacturing various apparel items are far lower in India in comparison with its competitors.

7. OTHER WEAKNESSSES:-   Less attention on man power training   Poor quality standards   Distance of the potential market   Lower average consumption in domestic market   Lack of professionalism and integration of supply chain   Dependence on quota system   Very low investment on R&D   Limited exploitation of economies of scale

8. OPPORTUNITIES Growing   Industry World textile trade would continue to grow at a rate of 3-4% to reach $200-210 billon by 2010.   Market access through bilateral negotiation The trade is growing between regional trade blocs due to bilateral agreements between participating countries.   Integration of Information technology ‘Supply Chain Management’ and ‘Information Technology’ has a crucial role in apparel manufacturing. Availability of EDI (Electronic Data Interchange), makes communication fast, easy, transparent and reduces duplication.

9. Opportunity in High Value Items India has the opportunity to increase its UVR’s (Unit Value Realization) through moving up the value chain by producing value added products and by producing more and more technologically superior products.

10.   THREATS Decreasing   Fashion   Cycle There has been an increase in seasons per year which has resulted in shortening of the fashion cycle. Formation of Trading Blocks Formation of trading blocks like NAFTA, SAPTA, etc; has resulted in a change in the world trade scenario. Existence of bilateral agreements would result in significant disadvantage for Indian exports. Phasing out of Quotas India will have to open its protected domestic market for foreign players thus domestic market will suffer.

11. EXPORT

12. COMPARISION

13. TEXTILE INDUSTRY KEY FACTS  Indian Textile Industry is highly fragmented industry; at the same time it is an independent and self-reliant industry that has shown sustainable growth over the years. Indian textile Industry is valued at US$ 36 Billion with exports of US$ 17 Billion in 2005-2006. The Indian Textile Industry plays vital role in economic development and contributes 14% to industrial production in the country.

14. Indian Textile Industry is second largest industry in terms of providing vast employment opportunities and employs around 35 million people in country after agriculture sector.

15. Textile Industry contributes around 4% of GDP, 9% of excise collections, 18% of employment in industrial sector, and has 16 % share in country’s export. Industry contributes around 25% share in the world trade of cotton yarn. India is evolved as a major contributor in world’s cotton sector. Indian is the world’s third-largest producer of cotton and second-largest producer of cotton yarns and textiles.  India is the largest exporter of yarn in the international market and has a share of 25% in world cotton yarn export market. India contributes for 12% of the world’s production of textile fibers and yarn. Highly Fragmented, High dependence on cotton sector, Lower productivity, Unfavourable Labor Laws are few drawbacks of the industry from which it has to overcome.

16.  Indian textile industry is second largest after China, in terms of spindle age, and has share of 23% of the world’s spindle capacity. India has around 6% of global rotor capacity. The country has the highest loom capacity, including handlooms, and has share of 61% in world loom age. Including textiles and garments, 30% of India’s export comes from this sector.  Indian Textile Industry is one of the largest industry that provides high exports and foreign revenue. Large and potential domestic & international market, large pool of skilled and cheap labor, well-established industry, promising export potential etc. are few strengths of Indian Textile Industry.

17. REFERENCE UKESSAYS:- UKESSAYS https://www.google.com/search?q=india%27s+major+textile+hub&rlz=1C1CHBD_enIN974IN974&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjKz8eEtOHzAhUhH7cAHWZABn0Q_AUoA3oECAEQBQ&biw=1280&bih=577&dpr=1.5#imgrc=V-UMfZHCZQyuVM SWOTHUB:- https://swothub.com/textile-industry-swot-analysis/ https://blogs.siliconindia.com/rohitkantprasad/SWOT_analysis_of_Indian_Apparel_Textile_Industry-bid-nMHxN50t11848596.html

18. https://www.nidcoaching.com/nonwovens-at-frontline-in-battle-against-coronavirus/ https://www.researchgate.net/publication/279179011_Assessment_of_the_Indian_and_US_Technical_Textile_Industries_Application_of_SWOT_Analysis