INTRODUCTION

The textile industry in India is one of

the oldest manufacturing sectors in the country and is currently its largest. The Textile industry occupies an important place in the economy of the country because of its contribution to the industrial output, employment generation and foreign exchange earning.

ECONOMIC ANALYSIS OF TEXTILE INDUSTRY

The Textile Industry occupies a vital place in the

Indian economy and contributes substantially to its exports earnings. Textiles exports represent nearly 30 per cent of the country's total exports. It provides direct employment to over 15 million persons in the mill and handloom sectors. India is the worlds second largest producer of textiles after China. It is the worlds third largest producer of cotton-after China.

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. 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 countrys total export.
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 Increasing disposable incomes of the

people. Growing domestic market.

WEAKNESSES
Indian

Textile Industry is highly Fragmented Industry. Predominance of unorganised sector. Industry is highly dependent on Cotton. Lower Productivity in various segments. Lack of Technological Development that affect the productivity and other activities in whole value chain.
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 There is Declining in Mill Segment. Lack of Trade Membership, which restrict to

tap other potential market. Higher Indirect Taxes, Power and Interest Rates.

OPPORTUNITIES
Increasing demand for the luxury brands from

the middle class. Research and new product development can help the companies to move across the value chain. Large, Potential Domestic and International Market. Emerging Retail Industry and Malls provide huge opportunities for the Apparel, Handicraft and other segments of the industry.
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THREATS
Increased competition in the domestic markets.

Changing governments policy on FDI.

Competition from other developing countries,

especially China. Tackle Chinese aggression over the international market. Threat for Traditional Market for Power loom and Handloom Products and forcing them for product diversification.
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COMPARISON OF THE INDIAN AND CHINESE TEXTILE INDUSTY

India ranks among the top target countries for any company sourcing textiles and apparel. Indeed, apart

from China, no other country can match the size, spread, depth, and competitiveness of the Indian textile and apparel industry. India : a growing source India has a complete supply chain from a vast raw material supply to high quality finished products. Labour costs are among the lowest in the world. Indian firms offer experience, entrepreneurship and design skills which Chinese firms find hard to match.
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Advantages of India over China

Abundant raw material availability.

Low cost skilled labour.

Presence across the value chain.

Growing domestic market.

More creative .

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