SWOT ANALYSIS OF THE INDIAN TEXTILES INDUSTRY SWOT analysis of the Indian textile industry keeping in mind the

global changes that have taken place in the post quota regime. STRENGTHS1. Abundant raw material availability that helps industry to control costs and reduces the leadtime across the operation. Availability of low cost and skilled manpower provides competitive advantage to industry. 2. Presence across the value chain. The presence of capabilities across the entire value chain within the country is an advantage as it reduces the lead time for production and cuts down the intermediate shipping time. 3. Its a vertically integrated industry which covers a large gamut of activities from production of its own raw material namely cotton, wool etc to provide consumer hig value added product such as fabric and garment. 4. Second largest cotton producer as well as the largest area under cultivation. 5. Recent government efforts to promote the industry. Govt. support to handloom sector through tax exemption which ensure price competitive fabric 6. Steadily diversified its raw material base to include man-made fibres such as Polyester, viscose, acrylic, polypropylene etc. as well as other natural fibers. 7. Flexible in terms of production quantity and lead time which helps in increased productivity 8. India is one of the largest exporters of yarn in international market and contributes around 25% share of the global trade in cotton yarn. 9. Growing economy and potential domestic and international market. Demographic trends in India are changing, with increase in disposable income levels, consumer awareness and propensity to spend. 10. Indian textile industry is an independent & self-reliant industry starting from raw material procurement to final production with value addition at every step. 11. Diversified garment industry in terms of manufacturing facility , size , type of apparel produced, quantity and quality of output , cost etc 12. The new age creative and risk taking entrepreneurs. WEAKNESSES: 1. Higher indirect taxes, power and interest rates. 2. Lack of technological development that affect the productivity.

3. Industry is highly dependent on cotton. 4. Inefficient supply chain management 5. Lack of economies of scale and advance processing capabilities. Declining in mill segment. 6. Infrastructural bottlenecks and efficiency.

7. Unfavorable labour laws. 8. Foreign investments are not coming in as the overall factors influencing the industry are not investment friendly 9. Logistical disadvantages in terms of shipping costs and time pose serious threats to its growth 10. Fragmented structure with the dominance of the small scale sector 11. High power costs 12. Rising interest rates and transaction costs 13. Caters mainly to the low-end class. 14. Low level of training. 15. The export-import policy of India changes too frequently due to which it becomes very difficult for importers to import goods. 16. Lack of trade membership, which restrict to tap other potentials 17. Additionally, this sector is still unorganized at many levels and needs a lot of government reforms for further improvisation OPPORTUNITIES: 1. Huge demand for value added goods in all major countries. 2. 3. Relocation from high cost economies. Large and relatively untapped domestic market

4. Large Indian Expatriate community. Hence there is large demand for Indian Garments. 5. 6. Rate of import duties is minimal. Bilateral Agreements on Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income and capital have further opened the

Opportunity for higher export for the garment sector. 7. Shifting towards branded readymade garment. 8. Growth rate of domestic textile industry. 9. Elimination of quota restriction leads to greater market. And has created opportunity to import machinery and technology at preferential tariffs and enter joint venture arrangement with foreign firms 10. Emerging retail industry and malls.

11. Growing demand for non-woven textiles. 12. Growing technical textile market due to strong demand for automotive fabrics. 13. Product development and diversification to cater global needs.

THREATS: 1. In export, elimination of quota system will lead to fluctuations in export demand 2. Geographical demerits. 3. To make balance between demand and supply 4. Competition from other developing countries, especially China. 5. Slow improvement in quality to international standards and adoption to fast changing fashion demands. Continuous quality improvement is needed as there are different demand patterns all over the world 6. To make Balance between price and quality. 7. International labor and Environmental Laws. 8. Entry of multinational in domestic markets.