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    SWOT Analysis of Indian Apparel & Textile Industry: Raw Material Base

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    Anonymous UoRu4s
    The Indian textile industry contributes significantly to India's GDP and employment. It is one of India's largest sources of foreign exchange. A SWOT analysis identifies key strengths as India's large raw material base and cheap labor. However, weaknesses include overdependence on cotton, lack of modernization in spinning and weaving sectors, and poor infrastructure. Opportunities exist in growing world trade, market access through trade agreements, and integrating information technology. Threats include decreasing fashion cycles, formation of trade blocs, and phasing out of quotas.

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    SWOT Analysis of Indian Apparel & Textile Industry: Raw Material Base

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    Anonymous UoRu4s
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    The Indian textile industry contributes significantly to India's GDP and employment. It is one of India's largest sources of foreign exchange. A SWOT analysis identifies key strengths as India's large raw material base and cheap labor. However, weaknesses include overdependence on cotton, lack of modernization in spinning and weaving sectors, and poor infrastructure. Opportunities exist in growing world trade, market access through trade agreements, and integrating information technology. Threats include decreasing fashion cycles, formation of trade blocs, and phasing out of quotas.

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    APPAREL INDUSTRY

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    Swot

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    The Indian textile industry contributes significantly to India's GDP and employment. It is one of India's largest sources of foreign exchange. A SWOT analysis identifies key strengths as India's large raw material base and cheap labor. However, weaknesses include overdependence on cotton, lack of modernization in spinning and weaving sectors, and poor infrastructure. Opportunities exist in growing world trade, market access through trade agreements, and integrating information technology. Threats include decreasing fashion cycles, formation of trade blocs, and phasing out of quotas.

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    Download as docx, pdf, or txt
    108 views3 pages

    SWOT Analysis of Indian Apparel & Textile Industry: Raw Material Base

    Uploaded by

    Anonymous UoRu4s
    The Indian textile industry contributes significantly to India's GDP and employment. It is one of India's largest sources of foreign exchange. A SWOT analysis identifies key strengths as India's large raw material base and cheap labor. However, weaknesses include overdependence on cotton, lack of modernization in spinning and weaving sectors, and poor infrastructure. Opportunities exist in growing world trade, market access through trade agreements, and integrating information technology. Threats include decreasing fashion cycles, formation of trade blocs, and phasing out of quotas.

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    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:-
    1. STRENGTH
    I. Raw material base
    India has high self sufficiency for raw material particularly natural fibres. Indias cotton crop
    is the third largest in the world. Indian textile Industry produces and handles all types of
    fibres.
    II. Labour
    Cheap labour and strong entrepreneurial skills have always been the backbone of the Indian
    Apparel and textile Industry.
    III. Flexibility
    The small size of manufacturing which is predominant in the apparel industry allows for
    greater flexibility to service smaller and specialized orders.
    IV. Rich Heritage
    The cultural diversity and rich heritage of the country offers good inspiration base for
    designers.
    V. Domestic market
    Natural demand drivers including rising income levels, increasing urbanisation and growth
    of the purchasing population drive domestic demand.
    2. WEAKNESS
    I. 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.
    II. Spinning Sector
    Spinning sector lacks modernization and there is a need of introducing new technology.
    III. Weaving Sector
    India has relatively less number of shuttle-less loom.
    IV. Fabric Processing
    Processing is the weakest link in the Indian textile value chain, adversely affecting its ability
    to compete in exports.
    V. Poor Infrastructure
    High power costs and long export lead times are eroding Indias export competitiveness
    across the textile chain.
    VI. Low Labour Productivity
    Productivity levels for manufacturing various apparel items are far lower in India in
    comparison with its competitors.
    OTHER WEAKNESSSES
    VII. Less attention on man power training
    VIII. Poor quality standards
    IX. Distance of the potential market
    X. Lower average consumption in domestic market
    XI. Lack of professionalism and integration of supply chain
    XII. Dependence on quota system
    XIII. Very low investment on R&D
    XIV. Limited exploitation of economies of scale
    3. OPPORTUNITIES
    I. Growing Industry
    World textile trade would continue to grow at a rate of 3-4% to reach $200-210 billon by
    2010.
    II. Market access through bilateral negotiation
    The trade is growing between regional trade blocs due to bilateral agreements between
    participating countries.
    III. 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.
    IV. Opportunity in High Value Items
    India has the opportunity to increase its UVRs (Unit Value Realization) through moving up
    the value chain by producing value added products and by producing more and more
    technologically superior products.
    4. THREATS
    I. Decreasing Fashion Cycle
    There has been an increase in seasons per year which has resulted in shortening of the
    fashion cycle.
    II. 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.
    III. Phasing out of Quotas
    India will have to open its protected domestic market for foreign players thus domestic
    market will suffer.

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