Swot Analysis of Indian Textile Industry

Strengths:

1. Indian textile industry is an independent & self-reliant industry.

2. Plenty of Raw Material sites that help businesses to control costs and reduce lead-times across the operation.

3. The availability of low cost and skilled labor gives competitive advantage to industry.

4. Access to large varieties of cotton fiber and has a rapidly growing synthetic fiber industry.

5. India has great advantage in the Spinning sector and has a presence in all process of operation and value chain.

6. India is one of the largest exporters of yarn in the international market and contribute about 25% of the global trade in cotton yarn.

7. The Apparel Industry is one of the largest foreign revenue contributor and owns 12% of its total exports.

8. The industry is large and diverse segments that provide wide range of products.

9. Growing economy and potential domestic and international market.

10. The industry Manufacturing Flexibility, which helps to increase productivity.

Weaknesses:

1. Indian textile industry is very fragmented industry.

2. The industry is very dependent on cotton.

3. Lower productivity in different segments.

4. There is decreasing in Mill Segment.

5. Lack of technological developments which affect productivity and other activities throughout the value chain.

6. Infrastructure Bottlenecks and effectiveness, such as Transaction Time in ports and transport Time.

7. Unfavorable labor laws.

8. Lack of Trade Membership, which limits to exploit other potential market.

9. Failure to generate economies of scale.

10. Higher indirect taxes, "Power and interest rates.

Opportunities:

1. Growth rate of Domestic textile industry is 6-8% per year.

2. Great Potential Domestic and international market.

3. Product development and diversification to meet global needs.

4. Removal of Quota Restrictions leads to greater Market Development.

5. The market is gradually moving towards Branded Readymade Garment.

6. Increased disposable income and purchasing power of Indian Customer opens New Market Development.

7. New Retail Industry and malls provide great opportunities for Apparel, Handicraft and other parts of the industry.

8. Greater investment and FDI opportunities are available.

Threats:

1. Competition from other developing countries, especially China.

2. Continuous quality improvement is needed for the hour as there are different demand patterns worldwide.

3. Abolition of quota system will lead to fluctuations of Export Demand.

4. Threat to traditional market for Powerloom and handloom products and force them to product diversification.

5. Geographical Disadvantage.

6. International labor and environmental laws.

7. To balance supply and demand.

8. To make the balance between price and quality.