SWOT Analysis

Strengths:

 Indian Textile Industry is an Independent & Self-Reliant industry.

 Abundant Raw Material availability that helps industry to control costs and reduces the
lead-time across the operation.
 Availability of Low Cost and Skilled Manpower provides competitive advantage to
industry.
 Availability of large varieties of cotton fiber and has a fast growing synthetic fiber
industry.
 India has great advantage in Spinning Sector and has a presence in all process of
operation and value chain.
 India is one of the largest exporters of Yarn in international market and contributes
around 25% share of the global trade in Cotton Yarn.
 The Apparel Industry is one of largest foreign revenue contributor and holds 12% of the
country’s total export.
 Industry has large and diversified segments that provide wide variety of products.
 Growing Economy and Potential Domestic and International Market.
 Industry has Manufacturing Flexibility that helps to increase the productivity.

Weaknesses:

 Indian Textile Industry is highly Fragmented Industry.

 Industry is highly dependent on Cotton.
 Lower Productivity in various segments.
 There is Declining in Mill Segment.
 Lack of Technological Development that affect the productivity and other activities in
whole value chain.
 Infrastructural Bottlenecks and Efficiency such as, Transaction Time at Ports and
transportation Time.
 Unfavorable labor Laws.
 Lack of Trade Membership, which restrict to tap other potential market.
 Lacking to generate Economies of Scale.
 Higher Indirect Taxes, Power and Interest Rates.

Opportunities:

 Growth rate of Domestic Textile Industry is 6-8% per annum.

 Large, Potential Domestic and International Market.
 Product development and Diversification to cater global needs.
  Elimination of Quota Restriction leads to greater Market Development.
 Market is gradually shifting towards Branded Readymade Garment.
 Increased Disposable Income and Purchasing Power of Indian Customer opens New
Market Development.
 Emerging Retail Industry and Malls provide huge opportunities for the Apparel,
Handicraft and other segments of the industry.
 Greater Investment and FDI opportunities are available.

Threats:

 Competition from other developing countries, especially China.

 Continuous Quality Improvement is need of the hour as there are different demand
patterns all over the world.
 Elimination of Quota system will lead to fluctuations in Export Demand.
 Threat for Traditional Market for Powerloom and Handloom Products and forcing them
for product diversification.
 eographical Disadvantages.
 International labor and Environmental Laws.
 To balance the demand and supply.
 To make balance between price and quality.