SWOT Analysis

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.

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.

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.

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.