Textile Industry Concerns

 

 

  • Indian Textile Industry is highly fragmented Industry that is lead by several small-scale industries. Because of this, there is lack of Industry Leadership. These small companies do not have fiscal resources to invest in technological up-gradation and they are not able to generate economies of scale. This leads to inability to establish a world-class competitive player.
  • Despite many policies Industry is bound with historical regulations that are reason for Complex Industry Structure.
  • Though Industry has cheap and skilled manpower but they are less productive.
  • Industry is unable to generate economies of scale, as a result, it is tough to balance the demand and supply equation.
  • There is lack of technological up-gradation in various steps of value chain that affect the quality, cost and distribution.
  • There are high Costs like, High Indirect Taxes, Power and Interest Rates.
  • Inadequate Research & Development.
  • There is less FDI in this industry that is hurdle to make industry more competitive on global basis.
  • Industry has unfavorable labor Laws.
  • India has disadvantage in terms of Geographic Locations. Because of this there is Global Logistic Disadvantage as shipping cost is higher.
  • There is uneven supply chain model and inbound freight traffic is low which affects cost of shipping.
  • India lacks in various trade memberships, which restrict to tap potential market.
  • Inappropriate energy supplies to rural and sub-urban areas.
  • Industry needs to compete on the basis of Price, Quality and Delivery for the different segments.