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.