The Indian textile industry is a major contributor to the Indian economy, generating $18.73 billion in exports and employing over 35 million people. It encompasses various sectors such as cotton, man-made fibers, wool, silk, handlooms and handicrafts. While India has strengths like low costs and a large skilled workforce, the industry is fragmented and faces threats from competition abroad and within India. To capitalize on new opportunities, industry players must invest in product development, technology, and integrated manufacturing capabilities.

1. Indian Textile Industry Syndicate I

2. Multi - Fibre Arrangement Quotas on imports of textile from more competitive developing countries. Dismantling of quota on Jan 1,2005 Increased opportunities Competition

4. Perspective of the Economy Total market size (2006-07): Exports: USD 18.73 bn Strong contribution to Indian Economy 14% contribution to industrial production 4% contribution to GDP 17% contribution to export earnings Direct employment to more than 35 million people

5. Sector is diverse hand-spun and hand woven sector capital intensive, sophisticated mill sector

6. Segments Organized Cotton/ Man-Made Fibre Textiles Mill Industry Man-made Fibre/ Filament Yarn Industry Wool and Woolens Textiles Industry Sericulture and Silk Textiles Industry Handlooms Handicrafts Jute and Jute Textiles Industry Textiles Exports

7. SWOT Analysis

8. Strengths India’s strong base in raw-materials Cotton dominates the industry Nearly 56% of yarn produced is made of cotton Country produces nearly 23 varieties of cotton India is the second largest player in the world cotton trade

9. India’s position is strong vis-à-vis other countries in most raw materials Largest producer of jute Second largest producer of silk Third largest producer of cotton, accounting for nearly 16% of global production Third largest producer of cellulosic fibre/yarn Fifth largest producer of synthetic fibres/yarn Eleventh largest producer of wool

10. Low cost skilled labour Presence across the value chain Reduced lead time Growing domestic market

11. Weakness Fragmented Industry Historical Regulations Lower Productivity and Cost Competitiveness Technology Obsolescence

12. Opportunities New Product Development Stress on product development New specialized fabrics Investing in design centers and sampling labs Increased use of CAD to develop designing capabilities Investing in trend forecasting

13. Threats Competition in domestic market Ecological and social awareness Regional alliances China

14. Major Players of Indian Textile Industry Arvind Mills Raymonds Reliance Textiles Vardhaman Spinning Welspun India

15. Comments "We need to maintain and manufacture high quality products. We have timely deliveries because India is recognized as major player in international textile market. So, if we maintain our competitiveness, we'll be able to regain some markets, we have lost to China," K V Srinivasan, Chairman, South India Mills

16. The Meltdown In US Rising Commodity Prices Credit Crunch

17. Impact on Indian Textile Industry Decreasing demand in European and US markets Decreasing demand for retail garments Mills in Rajasthan and Tamil Nadu reduced shifts (resulting in job loss) cut down capacity

18. India was losing out to countries like Bangladesh, Vietnam and Cambodia The chairman, Confederation of Indian Textile Industry (CITI), R.K. Dalmiya

19. Conclusion A huge window of opportunity has opened up for the Indian textile industry which is fast closing up. Various players need to get act together. It’s now for players to make investments in building the capacities and making them integrated manufacturers. They need to invest more in R&D. This is the only way they can compete with the Chinese dragon.