The document discusses the growth of India's textile industry from 1980-1981 to 2009-2010. It analyzes key periods of pre-liberalization (1980-1992), post-liberalization (1992-2005), and post-MFA regime (2005-2010). Textile policy evolved over time to make the industry more efficient and competitive by removing controls, allowing private investment and imports. Economic reforms in 1991 further deregulated and liberalized the sector. The textile industry has significantly contributed to India's GDP, employment, and exports over decades of development.
- The text summarizes a document discussing the textile industry of Pakistan and where it currently stands.
- Pakistan's textile industry contributes significantly to GDP and employment but accounts for a small share of the global textile market.
- The industry primarily exports raw materials and low-value clothing, while competitors like China and Bangladesh have increased exports of higher-value and technical textiles.
- For Pakistan to increase exports, it needs to either focus on low-cost mass production like Bangladesh or produce higher-value goods through investment in technology, skills development, and research capabilities.
A study on ‘Performance Evaluation of Select Textile Companies An Empirical A...IOSRJBM
Indian Textile industry has played a pioneered role in growth and upliftment of country. It is the sector that contributes approx 14 per cent to industrial production, 4 per cent to GDP and Approx 13 Percent of total exports of the country. The sector has offered employment to around 45 million people, by acting as one of the biggest employment generator sector. In spite of having such a remarkable records, companies in textile industry are facing many problems like shortage of raw material, obsolete machinery, power shortage, low productivity of labour and competition in foreign market. So the objective of the study is to measure and compare the performance of selected textile companies in India during last five years. The secondary data collected is analyzed using various statistical tools and techniques such as Ratio analysis and one way ANOVA. To measure the financial performance of selected textile companies, in terms of Managerial efficiency, Liquidity, Profitability and Solvency position of the companies, ratio analysis has been used. Further one way ANOVA has been used to identify if there exist a significant difference in the mean and performance of different textile companies. The results showed that there is significance difference in the Return on Capital Employed, Net Profit Margin, Current Ratio, Debt to Equity Ratio, and Fixed Asset turnover ratio of sample Textile companies at 5% level of significance
This report analyzes China's textile fabric industry in 2011, focusing on key segments including cotton, wool, silk, hemp and chemical fibers. It highlights the largest companies in each segment and notes that while prices rose in 2010 for raw materials, the output and sales of fabrics were balanced. The industry continues to have strong potential for growth due to increasing demand for downstream textile products.
Export competitievness of indian textile industry b.govindan kutty nair -223...BGK NAIR
This study examines the export competitiveness and performance of India's textile industry from 2010-2014. It analyzes 11 textile product groups using the Revealed Comparative Advantage (RCA) index. The results show that 7 of the 11 products have an RCA over 1, indicating a comparative advantage in the world market. These include silk, cotton, vegetable fibers, manmade filaments, manmade staple fibers, carpets, and special woven fabrics. Cotton and carpets have the highest RCA values and are most competitive globally. The document outlines the objectives, methodology, literature review, data sources, and analysis of export competitiveness and performance for each product group.
This document provides an introduction and overview of Krishnakanth Spinning Mills in Dindigul, Tamil Nadu, India. It discusses the company's mission, installed capacity, goals of producing quality yarn to international standards and customer satisfaction. It also includes an organizational chart, descriptions of key departments including production, purchasing, stores, and functional charts. The document aims to familiarize the reader with the company profile and operations.
The Pakistan textile industry faces major challenges including a global recession, high production costs due to increased energy costs, depreciation of the Pakistani rupee raising import costs, and high inflation. Modernizing equipment and increasing research and development could help address declining competitiveness from outdated technology. High interest rates, lack of reliable energy supplies, and non-supportive government policies further hinder the industry. Solutions proposed include government subsidies, reducing taxes, and withdrawing withholding taxes to support the critical textile industry.
The document summarizes the Indian textile industry. It notes that the industry contributes significantly to India's economy through production, employment, and exports. The industry encompasses the full value chain from raw materials to final products. It has witnessed growth in recent decades. The government has implemented various initiatives and reforms to promote modernization and competitiveness in the industry. India has inherent advantages through its large raw material base and skilled workforce. There are business opportunities for both domestic and foreign players across the value chain.
The document discusses the competitiveness of Pakistan's textile industry and identifies several issues and challenges. It notes that the textile industry generates most of Pakistan's exports but its growth has slowed. Key factors of competitiveness include labor costs, access to materials, infrastructure and markets. While Pakistan has low labor wages, productivity is a challenge. The industry needs to improve capabilities in areas like technology, efficiency, product development and compliance to strengthen its position against competitors like China, India and Bangladesh.
- The text summarizes a document discussing the textile industry of Pakistan and where it currently stands.
- Pakistan's textile industry contributes significantly to GDP and employment but accounts for a small share of the global textile market.
- The industry primarily exports raw materials and low-value clothing, while competitors like China and Bangladesh have increased exports of higher-value and technical textiles.
- For Pakistan to increase exports, it needs to either focus on low-cost mass production like Bangladesh or produce higher-value goods through investment in technology, skills development, and research capabilities.
A study on ‘Performance Evaluation of Select Textile Companies An Empirical A...IOSRJBM
Indian Textile industry has played a pioneered role in growth and upliftment of country. It is the sector that contributes approx 14 per cent to industrial production, 4 per cent to GDP and Approx 13 Percent of total exports of the country. The sector has offered employment to around 45 million people, by acting as one of the biggest employment generator sector. In spite of having such a remarkable records, companies in textile industry are facing many problems like shortage of raw material, obsolete machinery, power shortage, low productivity of labour and competition in foreign market. So the objective of the study is to measure and compare the performance of selected textile companies in India during last five years. The secondary data collected is analyzed using various statistical tools and techniques such as Ratio analysis and one way ANOVA. To measure the financial performance of selected textile companies, in terms of Managerial efficiency, Liquidity, Profitability and Solvency position of the companies, ratio analysis has been used. Further one way ANOVA has been used to identify if there exist a significant difference in the mean and performance of different textile companies. The results showed that there is significance difference in the Return on Capital Employed, Net Profit Margin, Current Ratio, Debt to Equity Ratio, and Fixed Asset turnover ratio of sample Textile companies at 5% level of significance
This report analyzes China's textile fabric industry in 2011, focusing on key segments including cotton, wool, silk, hemp and chemical fibers. It highlights the largest companies in each segment and notes that while prices rose in 2010 for raw materials, the output and sales of fabrics were balanced. The industry continues to have strong potential for growth due to increasing demand for downstream textile products.
Export competitievness of indian textile industry b.govindan kutty nair -223...BGK NAIR
This study examines the export competitiveness and performance of India's textile industry from 2010-2014. It analyzes 11 textile product groups using the Revealed Comparative Advantage (RCA) index. The results show that 7 of the 11 products have an RCA over 1, indicating a comparative advantage in the world market. These include silk, cotton, vegetable fibers, manmade filaments, manmade staple fibers, carpets, and special woven fabrics. Cotton and carpets have the highest RCA values and are most competitive globally. The document outlines the objectives, methodology, literature review, data sources, and analysis of export competitiveness and performance for each product group.
This document provides an introduction and overview of Krishnakanth Spinning Mills in Dindigul, Tamil Nadu, India. It discusses the company's mission, installed capacity, goals of producing quality yarn to international standards and customer satisfaction. It also includes an organizational chart, descriptions of key departments including production, purchasing, stores, and functional charts. The document aims to familiarize the reader with the company profile and operations.
The Pakistan textile industry faces major challenges including a global recession, high production costs due to increased energy costs, depreciation of the Pakistani rupee raising import costs, and high inflation. Modernizing equipment and increasing research and development could help address declining competitiveness from outdated technology. High interest rates, lack of reliable energy supplies, and non-supportive government policies further hinder the industry. Solutions proposed include government subsidies, reducing taxes, and withdrawing withholding taxes to support the critical textile industry.
The document summarizes the Indian textile industry. It notes that the industry contributes significantly to India's economy through production, employment, and exports. The industry encompasses the full value chain from raw materials to final products. It has witnessed growth in recent decades. The government has implemented various initiatives and reforms to promote modernization and competitiveness in the industry. India has inherent advantages through its large raw material base and skilled workforce. There are business opportunities for both domestic and foreign players across the value chain.
The document discusses the competitiveness of Pakistan's textile industry and identifies several issues and challenges. It notes that the textile industry generates most of Pakistan's exports but its growth has slowed. Key factors of competitiveness include labor costs, access to materials, infrastructure and markets. While Pakistan has low labor wages, productivity is a challenge. The industry needs to improve capabilities in areas like technology, efficiency, product development and compliance to strengthen its position against competitors like China, India and Bangladesh.
This document provides a summary of a study on building complementarities and competitiveness in external trade between India and China. Some key points:
1) India and China have both moved from import substitution policies to more open, outward-looking trade policies since the late 1970s/early 1990s. Both are now WTO members pursuing market-oriented reforms.
2) Bilateral trade between India and China has grown rapidly since 2000, averaging 25.5% annual growth. However, India's share of China's global imports remains low at 1%, while China's share of India's imports is higher at 5%.
3) India's exports to China are dominated by primary/resource products but diversifying.
This document provides information on the Indian textile and clothing industry. It discusses the fragmentation of the industry between organized and unorganized sectors. It outlines major facts about the industry, including its large contribution to India's economy and exports. The document also examines the growing market size of the industry and analyzes strengths, weaknesses, opportunities, and threats. Finally, it reviews government initiatives to promote the industry.
A study on the effect of material price fluctuations on the profitability of ...Alexander Decker
This document analyzes the effect of cotton price fluctuations on the profitability of yarn producers in India, using Precot Meridian Ltd as a case study. It finds that while Precot has seen increasing sales over time, its profit margins have fluctuated, with losses incurred in some years. Analysis of key financial ratios like net profit ratio, gross profit ratio and operating profit ratio reveal that rising costs, especially for cotton which accounts for a major portion of total costs, have prevented Precot from maintaining stable and increasing profit margins despite revenue growth. The study aims to understand how cotton price volatility impacts yarn industry profits and identify strategies like strategic procurement and cost control that can help withstand fluctuations in input prices.
A project on readymade garments[CoSoMoS GrOuP(Hari&Taher)]Hariom Mehta
The document discusses India's garment industry. It states that India is the 2nd largest manufacturer of garments globally after China. The industry is fragmented with many small and medium enterprises. It employs over 35 million people directly and 47 million indirectly. The government has implemented several schemes to promote the industry such as attracting foreign investment and establishing fashion hubs and training centers. The industry is growing and modernizing, with international brands outsourcing more production to India. It is projected to become one of the top three textile and garment exporters globally.
The document provides information on India's textiles and apparel industry. It discusses the industry's growth prospects, with the domestic market projected to reach USD 223 billion by 2021 from USD 137 billion in 2016. Textile and apparel exports from India are also expected to increase to USD 82 billion by 2021 from USD 39.66 billion in 2016. The document outlines various government initiatives to support the industry such as the establishment of integrated textile parks and increasing budgetary support. It also highlights factors like rising incomes, favorable demographics and policy support that provide advantages for the growth of the textiles sector in India.
The textile and apparel industry in India is projected to reach US$ 223 billion by 2021 from US$ 137 billion in 2016 growing at a CAGR of 12.84%. Textile exports from India are expected to increase to US$ 82 billion by 2021 from US$ 36.63 billion in FY17. Cotton is the major raw material for the textile industry in India, accounting for over 50% of fabric production. The readymade garments and cotton textiles segments dominate India's textile exports.
The document summarizes the Indian textile industry. It notes that the industry contributes significantly to India's economy through production, employment, and exports. The industry encompasses the full value chain from raw materials to final products. It has witnessed growth in recent decades. The government has implemented various initiatives and reforms to promote modernization and competitiveness in the industry. India has inherent advantages through its large raw material base and skilled workforce. There are business opportunities for both domestic and foreign players across the value chain.
The textile industry is Bangladesh's largest export sector, accounting for over 75% of total exports. However, the industry faces many challenges that threaten its competitiveness. These include outdated machinery and lack of research/development; high production costs due to energy shortages, inflation, and interest rates; and safety issues damaging international confidence after disasters like Rana Plaza. To address these challenges, recommendations include improving infrastructure like energy access; expanding technical skills and access to capital; diversifying export markets; and strengthening workplace safety standards.
The document provides an overview of the textiles and apparel industry in India. Some key points:
- The size of India's textile market was around US$ 150 billion in 2017 and is expected to reach US$ 223 billion by 2021, growing at a CAGR of 12.28%.
- Exports of textiles from India reached US$ 18.56 billion in FY2019 and are expected to increase to US$ 82 billion by 2021.
- Major segments of the industry include cotton, silk, jute, wool and man-made fibers like polyester and nylon. Cotton accounts for the largest share of yarn and fabric production.
- The government has implemented several
GLOBAL TEXTILES AND CLOTHING INDUSTRY by Hiresh Ahluwalia333jack333
The document discusses the global and Indian textiles and clothing industries. It notes that the global textiles market is expected to grow to $700 billion by 2012 after quotas were removed in 2005. For India, the textiles industry contributes significantly to its economy and employment. It discusses the major sectors of the Indian textiles industry including organized mills, man-made fibers, decentralized power looms, wool, silk, handlooms, and handicrafts. The organized mill industry employs around 1 million workers while power looms contribute 62% of India's total cloth production and 4.86 million jobs. Overall, the textiles industry plays a large role in both the global and Indian economies and employment.
This document provides an overview of Raymond Limited, an Indian textile company. It discusses the textile sector in India including industry size, growth drivers, and Porter's five forces analysis. It then provides details on Raymond's market share, brands and products, recent news, competitors, and SWOT analysis. Financial statements including the income statement, balance sheet, and cash flow are also included. The document concludes with information on Raymond's organizational structure, job descriptions, culture, and training needs.
India's textiles and apparel industry has grown significantly in recent years and is projected to reach $223 billion by 2021. Textiles and apparel exports from India stood at $39.2 billion in FY18 and are expected to increase to $82 billion by 2021. Production of raw materials like cotton has also increased, with cotton production reaching 35.1 million bales in FY17. The government has implemented several schemes to encourage investment and modernization in the industry.
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.
The Indian garment industry is an important sector that employs millions of people and accounts for a significant portion of India's GDP and exports. It has grown substantially over the years at 30% annually and is now one of the largest exporters of garments globally, though it faces competition from countries like Bangladesh and China. The industry relies on India's advantages like availability of raw materials and cheap labor but also faces challenges around technology, skills, and government policies.
The document analyzes India's apparel industry. It discusses that the industry contributes 2% to India's GDP and is one of the country's fastest growing segments. It also outlines the various stages of apparel manufacturing such as design, pattern making, cutting, sewing, and finishing. Additionally, the summary provides statistics on India's apparel imports and exports from 2015-16 to 2019-20. It notes that while India was once a leader in apparel exports, Bangladesh has now surpassed it due to cheaper labor and fewer strikes. The conclusion suggests India can increase its global apparel exports by focusing on its large cotton production and automating processes to use materials more efficiently.
This document analyzes productivity growth in the Indian leather industry from 1979-1980 to 2008-2009. It finds that:
1. Total factor productivity growth was positive but low at 0.091 during the pre-reform period from 1979-1992, and increased dramatically to 1.19 during the post-reform period from 1991-2009.
2. While labor productivity improved during some post-reform years, it declined negatively during the 2000s decade of the post-reform period.
3. Liberalization has had a favorable impact on total factor productivity growth in the leather industry, though the industry struggled at times with negative growth in the 1980s and declining productivity in some periods.
The textile and apparel industry in India is projected to reach US$ 250 billion by 2019 from US$ 150 billion in July 2017. Textile and apparel exports from India are expected to increase to US$ 82 billion by 2021 from US$ 36.66 billion in FY17. Total cloth production in India in FY17 was 63.6 billion square metres. The government has undertaken various initiatives like SITP and TUFS to encourage investment and support infrastructure development in the textile industry. Rising income levels and favorable demographics are expected to drive domestic demand for textiles in India.
The text summarizes key information about the global textile industry:
1) The textile industry involves designing, manufacturing, and distributing textiles such as clothing and involves natural or artificial fibers formed into textiles through processes like weaving, knitting, and pressing.
2) Historically, the textile industry developed in the 19th century through the industrial revolution and mass clothing production but later faced issues with unsafe working conditions and low wages.
3) The textile industry remains an important global industry worth over $400 billion annually and is concentrated in certain areas but has increasingly moved production overseas through globalization and trade agreements.
The textile and apparel industry in India is projected to reach US$ 223 billion by 2021 from US$ 150 billion in 2017, growing at a CAGR of 10.14%. Exports have increased from US$ 31.65 billion in FY19 to US$ 39.2 billion in FY18 and are expected to reach US$ 82 billion by 2021. Domestic demand is also expected to rise due to increasing income levels, favorable demographics, and a shift toward branded products. Production of raw materials like cotton has increased, with cotton production reaching 36.1 million bales in FY19, and man-made fiber production reaching 1.204 million tonnes in the same period. The industry employs
The document discusses various trends and industries that will shape business opportunities in the year 2030, including resources, global warming, new careers, globalization, technology, science, knowledge, and space. It predicts that industries related to alternative energy sources, environmental protection, genetic engineering, web-based communication, advanced technologies, healthcare, information, and space exploration and colonization will experience significant growth and generate substantial revenues as the world continues to change in the coming years.
This visual dictionary defines and describes various building materials and components used in construction. It includes definitions for air barrier paper, gable vents, roof turbines, ridge vents, soffit vents, and other items related to roof construction. It also defines components of homes like studs, top plates, rafters, sheathing, as well as plumbing fixtures, electrical systems, siding materials, and more. Images are provided to illustrate many of the terms.
This document provides a summary of a study on building complementarities and competitiveness in external trade between India and China. Some key points:
1) India and China have both moved from import substitution policies to more open, outward-looking trade policies since the late 1970s/early 1990s. Both are now WTO members pursuing market-oriented reforms.
2) Bilateral trade between India and China has grown rapidly since 2000, averaging 25.5% annual growth. However, India's share of China's global imports remains low at 1%, while China's share of India's imports is higher at 5%.
3) India's exports to China are dominated by primary/resource products but diversifying.
This document provides information on the Indian textile and clothing industry. It discusses the fragmentation of the industry between organized and unorganized sectors. It outlines major facts about the industry, including its large contribution to India's economy and exports. The document also examines the growing market size of the industry and analyzes strengths, weaknesses, opportunities, and threats. Finally, it reviews government initiatives to promote the industry.
A study on the effect of material price fluctuations on the profitability of ...Alexander Decker
This document analyzes the effect of cotton price fluctuations on the profitability of yarn producers in India, using Precot Meridian Ltd as a case study. It finds that while Precot has seen increasing sales over time, its profit margins have fluctuated, with losses incurred in some years. Analysis of key financial ratios like net profit ratio, gross profit ratio and operating profit ratio reveal that rising costs, especially for cotton which accounts for a major portion of total costs, have prevented Precot from maintaining stable and increasing profit margins despite revenue growth. The study aims to understand how cotton price volatility impacts yarn industry profits and identify strategies like strategic procurement and cost control that can help withstand fluctuations in input prices.
A project on readymade garments[CoSoMoS GrOuP(Hari&Taher)]Hariom Mehta
The document discusses India's garment industry. It states that India is the 2nd largest manufacturer of garments globally after China. The industry is fragmented with many small and medium enterprises. It employs over 35 million people directly and 47 million indirectly. The government has implemented several schemes to promote the industry such as attracting foreign investment and establishing fashion hubs and training centers. The industry is growing and modernizing, with international brands outsourcing more production to India. It is projected to become one of the top three textile and garment exporters globally.
The document provides information on India's textiles and apparel industry. It discusses the industry's growth prospects, with the domestic market projected to reach USD 223 billion by 2021 from USD 137 billion in 2016. Textile and apparel exports from India are also expected to increase to USD 82 billion by 2021 from USD 39.66 billion in 2016. The document outlines various government initiatives to support the industry such as the establishment of integrated textile parks and increasing budgetary support. It also highlights factors like rising incomes, favorable demographics and policy support that provide advantages for the growth of the textiles sector in India.
The textile and apparel industry in India is projected to reach US$ 223 billion by 2021 from US$ 137 billion in 2016 growing at a CAGR of 12.84%. Textile exports from India are expected to increase to US$ 82 billion by 2021 from US$ 36.63 billion in FY17. Cotton is the major raw material for the textile industry in India, accounting for over 50% of fabric production. The readymade garments and cotton textiles segments dominate India's textile exports.
The document summarizes the Indian textile industry. It notes that the industry contributes significantly to India's economy through production, employment, and exports. The industry encompasses the full value chain from raw materials to final products. It has witnessed growth in recent decades. The government has implemented various initiatives and reforms to promote modernization and competitiveness in the industry. India has inherent advantages through its large raw material base and skilled workforce. There are business opportunities for both domestic and foreign players across the value chain.
The textile industry is Bangladesh's largest export sector, accounting for over 75% of total exports. However, the industry faces many challenges that threaten its competitiveness. These include outdated machinery and lack of research/development; high production costs due to energy shortages, inflation, and interest rates; and safety issues damaging international confidence after disasters like Rana Plaza. To address these challenges, recommendations include improving infrastructure like energy access; expanding technical skills and access to capital; diversifying export markets; and strengthening workplace safety standards.
The document provides an overview of the textiles and apparel industry in India. Some key points:
- The size of India's textile market was around US$ 150 billion in 2017 and is expected to reach US$ 223 billion by 2021, growing at a CAGR of 12.28%.
- Exports of textiles from India reached US$ 18.56 billion in FY2019 and are expected to increase to US$ 82 billion by 2021.
- Major segments of the industry include cotton, silk, jute, wool and man-made fibers like polyester and nylon. Cotton accounts for the largest share of yarn and fabric production.
- The government has implemented several
GLOBAL TEXTILES AND CLOTHING INDUSTRY by Hiresh Ahluwalia333jack333
The document discusses the global and Indian textiles and clothing industries. It notes that the global textiles market is expected to grow to $700 billion by 2012 after quotas were removed in 2005. For India, the textiles industry contributes significantly to its economy and employment. It discusses the major sectors of the Indian textiles industry including organized mills, man-made fibers, decentralized power looms, wool, silk, handlooms, and handicrafts. The organized mill industry employs around 1 million workers while power looms contribute 62% of India's total cloth production and 4.86 million jobs. Overall, the textiles industry plays a large role in both the global and Indian economies and employment.
This document provides an overview of Raymond Limited, an Indian textile company. It discusses the textile sector in India including industry size, growth drivers, and Porter's five forces analysis. It then provides details on Raymond's market share, brands and products, recent news, competitors, and SWOT analysis. Financial statements including the income statement, balance sheet, and cash flow are also included. The document concludes with information on Raymond's organizational structure, job descriptions, culture, and training needs.
India's textiles and apparel industry has grown significantly in recent years and is projected to reach $223 billion by 2021. Textiles and apparel exports from India stood at $39.2 billion in FY18 and are expected to increase to $82 billion by 2021. Production of raw materials like cotton has also increased, with cotton production reaching 35.1 million bales in FY17. The government has implemented several schemes to encourage investment and modernization in the industry.
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.
The Indian garment industry is an important sector that employs millions of people and accounts for a significant portion of India's GDP and exports. It has grown substantially over the years at 30% annually and is now one of the largest exporters of garments globally, though it faces competition from countries like Bangladesh and China. The industry relies on India's advantages like availability of raw materials and cheap labor but also faces challenges around technology, skills, and government policies.
The document analyzes India's apparel industry. It discusses that the industry contributes 2% to India's GDP and is one of the country's fastest growing segments. It also outlines the various stages of apparel manufacturing such as design, pattern making, cutting, sewing, and finishing. Additionally, the summary provides statistics on India's apparel imports and exports from 2015-16 to 2019-20. It notes that while India was once a leader in apparel exports, Bangladesh has now surpassed it due to cheaper labor and fewer strikes. The conclusion suggests India can increase its global apparel exports by focusing on its large cotton production and automating processes to use materials more efficiently.
This document analyzes productivity growth in the Indian leather industry from 1979-1980 to 2008-2009. It finds that:
1. Total factor productivity growth was positive but low at 0.091 during the pre-reform period from 1979-1992, and increased dramatically to 1.19 during the post-reform period from 1991-2009.
2. While labor productivity improved during some post-reform years, it declined negatively during the 2000s decade of the post-reform period.
3. Liberalization has had a favorable impact on total factor productivity growth in the leather industry, though the industry struggled at times with negative growth in the 1980s and declining productivity in some periods.
The textile and apparel industry in India is projected to reach US$ 250 billion by 2019 from US$ 150 billion in July 2017. Textile and apparel exports from India are expected to increase to US$ 82 billion by 2021 from US$ 36.66 billion in FY17. Total cloth production in India in FY17 was 63.6 billion square metres. The government has undertaken various initiatives like SITP and TUFS to encourage investment and support infrastructure development in the textile industry. Rising income levels and favorable demographics are expected to drive domestic demand for textiles in India.
The text summarizes key information about the global textile industry:
1) The textile industry involves designing, manufacturing, and distributing textiles such as clothing and involves natural or artificial fibers formed into textiles through processes like weaving, knitting, and pressing.
2) Historically, the textile industry developed in the 19th century through the industrial revolution and mass clothing production but later faced issues with unsafe working conditions and low wages.
3) The textile industry remains an important global industry worth over $400 billion annually and is concentrated in certain areas but has increasingly moved production overseas through globalization and trade agreements.
The textile and apparel industry in India is projected to reach US$ 223 billion by 2021 from US$ 150 billion in 2017, growing at a CAGR of 10.14%. Exports have increased from US$ 31.65 billion in FY19 to US$ 39.2 billion in FY18 and are expected to reach US$ 82 billion by 2021. Domestic demand is also expected to rise due to increasing income levels, favorable demographics, and a shift toward branded products. Production of raw materials like cotton has increased, with cotton production reaching 36.1 million bales in FY19, and man-made fiber production reaching 1.204 million tonnes in the same period. The industry employs
The document discusses various trends and industries that will shape business opportunities in the year 2030, including resources, global warming, new careers, globalization, technology, science, knowledge, and space. It predicts that industries related to alternative energy sources, environmental protection, genetic engineering, web-based communication, advanced technologies, healthcare, information, and space exploration and colonization will experience significant growth and generate substantial revenues as the world continues to change in the coming years.
This visual dictionary defines and describes various building materials and components used in construction. It includes definitions for air barrier paper, gable vents, roof turbines, ridge vents, soffit vents, and other items related to roof construction. It also defines components of homes like studs, top plates, rafters, sheathing, as well as plumbing fixtures, electrical systems, siding materials, and more. Images are provided to illustrate many of the terms.
The document summarizes auction items being bid on at a Viva la Musica concert, including groupings of paintings, watercolor paintings, beaded jewelry, necklaces, scarves, wine, voice lessons, and conducting lessons. Bidding ranges from $10 for baby caps to $450 for a set of paintings. The proceeds will support Viva la Musica.
Air barrier paper and various vents like gable, roof turbine, and ridge vents are described to reduce air leakage and ventilate attics. Batter boards, backhoes, and front end loaders are construction tools used on job sites. Various types of windows, doors, roofing materials, insulation, and other building components are defined with pictures provided for visualization.
Este documento compara las presentaciones gráficas orientadas a grandes cuentas con las demostraciones online dirigidas a la mayoría de las cuentas. Las presentaciones gráficas son lineales, sin errores y con retroalimentación intensiva, pero son virtuales y simplifican las ideas de forma coercitiva. Las demostraciones online son perceptivas, convincentes e impactantes visualmente, pero corren el riesgo de saturación, fallas técnicas y desconexión del orador.
The document describes several handcrafted jewelry items that will be auctioned at a concert to raise money. The items include beaded necklaces from South Africa, Ndebe beaded neckpieces from Africa, and necklaces made by Mary Ann Weisberg featuring materials like turquoise, garnet, jasper and rose quartz. Attendees can bid on the jewelry and enjoy a musical performance.
El documento compara las presentaciones gráficas orientadas a grandes cuentas con las demostraciones online dirigidas a la mayoría de las cuentas. Las presentaciones gráficas son lineales, sin errores y con retroalimentación intensiva, pero son virtuales y simplifican las ideas de forma coercitiva. Las demostraciones online son perceptivas, convincentes e impactantes visualmente, pero corren el riesgo de saturación, fallas técnicas y desconexión del orador.
This document provides instructions for setting up and operating the AVerMedia EB1304 NET digital video recorder. It includes connecting cameras, sensors, and other devices. The document also explains how to format the hard disk, set the date and time, view live video, and playback recorded video. Menu navigation and remote control functions are described to control the device.
Answers the following questions:
What is prototyping?
What are the different types of prototypes?
What is it used for?
How do you prototype for usability testing?
Organic Food Industry
Research Objective
Organic Food Category and Products
Contaminants and Pesticides
Regulations and Certifications
Market Size
Market Geography
Market Penetration
Frequency of Purchase – Trends
Perception of Organic Food – Trends
Driving Market Needs
Building on GAPs
SWOT Analysis
The document provides an overview of the food processing industry in India. It discusses the structural analysis and classification of the industry. It also outlines the reforms undertaken, including liberalization policies, fiscal incentives and financial reforms. Key initiatives under the 10th and 11th Five Year Plans are summarized, focusing on infrastructure development, quality assurance standards, and human resource development. The impacts of union budgets on various food processing sub-industries are also highlighted.
The document summarizes the Indian textile industry. It states that the industry is an important part of the Indian economy, contributing 14% to industrial production and employing over 35 million people. It also notes that the industry has seen high growth in output and exports in recent years. The industry benefits from India's large raw material base and presence across the entire textile value chain. The government has implemented several initiatives to support the industry through modernization, infrastructure development, and foreign investment promotion.
The document summarizes the Indian textile industry. It states that the industry is an important part of the Indian economy, contributing 14% to industrial production and employing over 35 million people. It also notes that the industry has seen high growth in output and exports in recent years. The industry benefits from India's large raw material base and presence across the entire textile value chain. The government has implemented several initiatives to support the industry through modernization, infrastructure development, and improving competitiveness.
The document summarizes the Indian textile industry. It notes that the industry contributes significantly to India's economy through employment, exports, and GDP. India has a large raw material base as a top global producer of cotton, silk, jute and man-made fibers. The industry is fragmented with many small independent units. Exports are dominated by ready-made garments while the domestic market is growing. The government has implemented policies to modernize the industry and attract foreign investment. India has a cost advantage over competitors in textile production.
ABSTRACT Marketing Strategies of Readymade Garments Industry of India.pdfAnn Wera
This document discusses marketing strategies of the readymade garments industry in India. It begins by providing background on the industry and outlines several objectives of the study, including to examine existing marketing policies and strategies used by garment companies. It then presents several hypotheses to be tested regarding relationships between owner/company factors and marketing strategies. The methodology discusses using statistical tools like t-tests, ANOVA, and percentages to analyze primary survey data collected from garment manufacturers, retailers, and customers. Limitations of the study include its focus on two regions of India and potential bias from informant responses.
This document provides information about conducting a feasibility study for a formal trouser business. It discusses what a feasibility report is and covers the key areas of marketing, technical, and financial feasibility. It also provides background information on the Indian textile industry and menswear market. The document outlines the production process for making trousers and specifies details about the potential company, including the product, address, brand, and quality standards. It analyzes the political, economic, social, and technological factors affecting the industry.
Role of the Cotton Textiles Export Promotion Council (TEXPROCIL) In the Devel...paperpublications3
The document discusses the role of the Cotton Textiles Export Promotion Council (TEXPROCIL) in developing India's textile export industry. It provides background on TEXPROCIL, which was established in 1954 to promote cotton textile exports. TEXPROCIL works to connect international buyers with Indian suppliers and provides members with market data, trade fair participation assistance, and representation to the government. However, the document notes TEXPROCIL still faces challenges like complicated documentation procedures, lack of standards for new fabrics, and trade barriers that limit market access for members. Overall, the summary aims to analyze issues faced by TEXPROCIL members and suggest improvements to better serve exporters.
It could well be considered the beginning of the Golden Era for the Indian textile industry. The current year and beyond promises to be an excellent period of growth for the industry. In our recent interaction with industry leaders, a sense of optimism and confidence was quite evident. The Government is expected to announce its new textile policy with an ambitious target of achieving 20 per cent share of the global textile trade and helping the domestic industry attain a size of $650 billion by 2024-25 by focussing on investments, skill development and labour law reforms. The policy blueprint, termed the ‘Vision, Strategy and Action Plan for the textiles and apparel industry, lays thrust upon diversification of exports through new products and markets along with increasing value addition and promoting innovation and RandD activities. Dr. Rohit Agarwal "Golden Era of Indian Textile Industry" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2 , February 2019, URL: https://www.ijtsrd.com/papers/ijtsrd21374.pdf
Paper URL: https://www.ijtsrd.com/other-scientific-research-area/other/21374/golden-era-of-indian-textile-industry/dr-rohit-agarwal
Textiles commissioner india's approach to technical textilesVeenaVerma29
The document summarizes the Indian technical textiles industry. It notes that the industry has grown significantly in recent years and is the fastest growing segment of the Indian textiles industry. However, India only accounts for 9% of the global technical textiles market. The top segments in India are different than the top segments globally. The government has launched several initiatives like the Technology Mission on Technical Textiles to promote the industry through setting up centers of excellence, supporting business startups, and increasing awareness.
Textiles commissioner india's approach to technical textilesVeenaVerma29
The document summarizes the Indian technical textiles industry. It notes that the industry has grown significantly in recent years and is the fastest growing segment of the Indian textiles industry. However, India only accounts for 9% of the global technical textiles market. The top segments in India are different than the top segments globally. The government has launched several initiatives like the Technology Mission on Technical Textiles to promote the industry through setting up centers of excellence, supporting business startups, and increasing awareness.
The document provides information on India's textiles and apparel industry. It discusses key facts about the industry, its evolution, segments, growth trends and export market share. The textile and apparel market in India is projected to reach USD 123 billion by 2021 from USD 108 billion in 2015. Textile exports from India are expected to increase from USD 40 billion in 2016 to USD 82 billion by 2021. Total cloth production in India is projected to grow from 64.3 billion square meters in 2015 to 112 billion square meters by 2017. The government is taking steps like integrated textile parks and favorable policies to support the industry's growth.
The document provides information on India's textiles and apparel sector. Some key points:
- The domestic textile industry in India is projected to reach USD123 billion by 2021, up from USD108 billion in 2015. Textile and apparel exports are expected to increase to USD82 billion by 2021, up from USD40 billion in 2016.
- Cotton production has been volatile in recent years, reaching 38 million bales in FY15, while man-made fiber production has been rising steadily.
- The two main segments of the sector are yarn and fiber, and processed fabrics and apparel. Cotton is the major material in yarn and fabric production.
- Exports have grown significantly
The document provides an overview of the textiles and apparel industry in India. Some key points:
- The size of India's textile market was around US$ 150 billion in 2017 and is expected to reach US$ 223 billion by 2021, growing at a CAGR of 12.28%.
- Exports have grown strongly over the years, reaching US$ 39.2 billion in FY2018, and are expected to increase to US$ 82 billion by 2021.
- Cotton production and man-made fibre production have also been increasing steadily to meet growing demand.
- The home textiles industry is expected to grow to US$ 8.2 billion by 2021 from US$ 4.
The garment industry is economically important for Bangladesh and one of its most emerging sectors. It has experienced phenomenal growth over the past 15 years, growing from exporting $1 million in 1978 to $8 billion in 2006. Currently, the garment industry employs over 4 million people, mostly women from rural areas, and contributes around 80% of Bangladesh's total exports. While the industry has brought significant economic benefits, it also faces problems like low wages, poor working conditions, and an inability to upgrade product quality. Overall, the garment industry remains vital to Bangladesh's economy but continued challenges threaten its long term prospects.
Vibrant Gujarat summit on Manufacturing sectorVibrant Gujarat
The focus sectors identified by the Government for supporting the growth of manufacturing industry. Gujarat is broadly classified into Textiles, Engineering, Automobile and Auto Ancillaries, Chemical, Gems & Jewellery and Pharmaceutical.
The textile and apparel industry in India is projected to reach US$ 223 billion by 2021 from US$ 150 billion in 2017, growing at a CAGR of 10.14%. Exports have increased from US$ 31.65 billion in FY19 to US$ 39.2 billion in FY18 and are expected to reach US$ 82 billion by 2021. Production of raw materials like cotton have also increased, with cotton production reaching 36.1 million bales in FY19. The domestic demand is expected to further drive the growth of the industry.
Vibrant Gujarat summit on Manufacturing sectorVibrant Gujarat
Indian Technical textile/Industrial Textile market today is mainly focusing on Pack-tech, Cloth-tech and Home-tech; while higher value added products like Med-tech & Indu-tech still have to be expanded.
Technology Mission on Technical Textiles (TMTT) focuses on standardization, creating common testing facilities with national / international accreditation and to provide support for the development of domestic & export markets for technical textiles.
The textile and apparel industry in India is projected to reach US$ 223 billion by 2021 from US$ 150 billion in 2017, growing at a CAGR of 10.14%. Exports of textiles from India reached US$ 31.65 billion in FY19 and are expected to increase to US$ 82 billion by 2021. Production of cotton, the major raw material, reached 36.1 million bales in FY19 while production of man-made fibre reached 1.204 million tonnes. The domestic demand is expected to drive growth in the industry.
Problems and prospects of goods and services taxBabita Saraswat
OBJECTIVES
1. To find out the problems after implementation of good and service tax in textile industry.
2. To find out the future prospects of GST in textile industry.
1. 53
Chapter IV
GROWTH OF TEXTILE INDUSTRY IN INDIA
4.1 Introduction
The phenomenal growth of textile industry in India has been striking features
in the economic development of the country since independence. It has contributed to
the overall growth of the country in terms of Gross Domestic Product (GDP),
employment generation and export. It has acquired a prominent place in the socio-
economic development of the country during the past four and a half decades.
Performance of the textile sector, which forms a major part of industrial sector, has
therefore got direct impact on the growth of the national economy. The present
section deals with the growth of Indian textile industry during the period from 1980-
81 to 2009-10 which represents pre liberalization (1980-81 -1991-92) and post-
liberalization (1992-93-2004-05) and post-MFA regime (2005-06-2009-10)
The evolution of textile policy in India has been along a trajectory intend to
make the industry more efficient and competitive. In the textile policy of 1985;
greater emphasis was given to modernization through up-gradation of technology by
ensuring the availability of adequate funds under soft loan scheme of IDBI (Industrial
Development Bank of India). The policy removed unnecessary controls and
regulations on the existing units and closure of unviable mills (Roychowdhury, 1995).
While the textile policy of 1985 made some efforts to make the plants more efficient,
the policies skipped off from significant structural changes like elimination of
licenses that would have made the industry more competitive. Further, there were no
changes in the restrictive labour laws and reservation of markets for small-scale firms
which were the key barriers to the capacity expansion to benefit from the economies
of scale.
Economic Reforms of 1991 in India brought some changes in the industrial
policies which sought to deregulate industries and expose firms to international
competition. It represented both a challenge, and an opportunity, to the protected
manufacturing sector.
2. 54
The process of liberalization opened-up textile sector to potential entrants.
Besides eliminating the system of licensing, the textile sector was removed from the
list of reservation for the small scale industries. In 2000, a new textile policy was
announced by the Government with the aim of modernizing the textile industry to
meet the global competition and implemented in a time bound manner with the
technology up-gradation fund scheme covering all manufacturing sectors of the
textile industry. The policy relaxed the restrictions on foreign investment, foreign
technology and foreign equipment to make the domestic industry more efficient and
competitive.
Indian textile industry started to integrate fully with WTO from January 2005.
The system of bilateral quotas regulating global textile industry for many years in the
name of MFA was phased out before 31 December 2004. The MFA was replaced by
the ATC which incorporated a series of stages of phasing out quantitative restrictions,
occurring at the beginning of 1995, 1998, 2002 and 2005, Nagaraj (1989) studied
trends in compound annual growth rates of textile industry during 1986-87 and
concluded that unregistered units recorded a better growth rate 5.8 percent than the
registered units (3.3 percent and entire manufacturing sector recorded a growth of
4.6 percent during the period under review. Porter (1992) made a strong case for
India’s garment sector in the post-MFA regime and cautioned that in garments too,
there is no room for India to be complacent as there will be tough competition from
countries like China, which manufacture in a much larger scale using better
technology. Chandra (1999) recorded that the global textile trade regime changed
drastically from the year 2005 with phase-out of MFA. The implication of the policies
is that firm have been improving their capabilities are the ones that are going to
benefit the most. The study discussed the nature of competition that Indian textile
firms are going to face domestically and globally. Some of the characteristics of
competitive firms that will emerge in the ensuing period are indicated. Landes et al.,
(2005) examined the growth prospects of India’s cotton and textile industries. They
argued that the demand for cotton and man-made fibers of India will increase in
response to rising consumer demand in India and increasing in exports of textiles and
apparel the removal of the Multi-fiber arrangement quotas, and various studies related
to growth have been undertaken. The major studies are from Sasidaran and
Shanmugam, (2008). Kathuriya and Bhardwaj (1998), Bernard Sinclair-Desgagne
3. 55
(2002), Pulapre Balakrishnan and M. Suresh Babu (2003), C. Veeramani (2004),
Ratan Kumar Ghosal (2006), J. Stan Metcalfe, John Foster and Ronnie Ramlogan
(2006), Fulvio Castellacci (2006), L.G.Burange (2006), Sheila Devi (2008),
Nagraj(2008).
Research work pertaining to the impact of economic reforms on growth and
exclusively textiles manufacturing industry were very few and scanty. More over the
studies have not dealt with reform periods except that of Pradeesh (2008) and Nagaraj
(2008) that too in textile industries. Issues and the number of sub-sectors considered
in the estimation of growth and its sources on Indian textile industry is very much
limited and there is hardly any study which considered post-MFA scenario Hence this
study has been undertaken to fill the gap.
The analysis is undertaken in the present study is based on the product groups
which are identified in terms of product codes. The codes and their corresponding
product names are indicated in appendix: 1 . The study examined the performance of
textile industry in terms of growth indicators and product groups.
4.2 Growth Indicators and Product Groups of the Textile Industry
The growth indicators which have been considered to analyze the growth of
the industry in India, are (i) Number of Factories (ii) Gross Fixed Capital Formation
(Gross block) (iii) Employment (number of persons engaged) and (iv) Gross Value
Added (output) in various product groups of the textile industry.
4.2.1 Number of Factories
Increases in the number of factories, against the backdrop of regulation by
government and local bodies on the establishments are bound to throw light on the
implications of reforms. This is the analytical rationale for choosing the number of
factories as a growth indicator in the reform era. In the study, the number of factories
is a taken as real variable. It has got the following limitations.
4. 56
1. Irrespective of the value of assets, size of capital, employment and output, each
unit gets equal weightage which is a serious limitation especially in a
comparative analysis.
2. The status of premises in which the unit is located may also be a limitation.
Number of Factories in the Pre-Liberalization Period
Table 4.2 presents the number of factories in the textile product manufacturing
industry in India in the pre-liberalization period. The Compound Growth Rate
computed, using the procedure described in section 3.3 of the Chapter-III is given in
the last row of the table.
Table: 4.1
Number of Factories and Compound Growth Rate in the Pre-Liberalization Period
Table 4.1 presents product group wise and year wise number of factories and growth rate in
percentage during pre-liberalization period from 1980-81 to 1991-92.
Year
NIC 0140 1711 1712 1721 1722 1723 1729 1730 1810
Textile
Sector
1980-81 3384 6164 1456 93 209 196 296 801 1219 13818
1981-82 3198 6651 1460 104 269 213 267 828 1177 14167
1982-83 3100 5584 1277 76 191 151 233 749 968 12329
1983-84 3106 5795 1441 89 236 179 233 725 1045 12849
1984-85 3111 5419 1396 85 189 161 310 961 1191 12823
1985-86 3158 5844 1434 88 209 161 225 805 1186 13110
1986-87 3016 5618 1513 86 189 180 203 793 1211 12809
1987-88 2965 5706 1600 158 214 271 220 868 1334 13336
1988-89 2844 5811 1674 111 160 235 211 833 1445 13324
1989-90 2955 5873 1845 150 173 314 201 919 1429 13859
1990-91 2967 6115 1829 153 219 336 197 1021 1611 14448
1991-92 2896 6107 1837 164 185 366 247 1058 1752 14612
Total 36700 70687 18762 1357 2443 2763 2843 10361 15568 161484
CGR (%) -1.16 -0.13 2.97 6.27 -1.92 6.91 -2.55 2.38 4.11 1.87
Source: Calculated from ASI data
It is clear from table 4.1 that there are wide fluctuations across the product
group and year wise analysis. The maximum number of factories is 14612 in 1991-92
and the minimum number of 12329 units is in 1982-83. Among the product group, the
maximum number of factories of 70687 is in the product group of Manufacturing of
Cotton Spinning, Processing other than in Mills, Weaving and Finishing (1711) and
minimum number of 1357 units in the product group of Manufacturing of Fabrics or
5. 57
Plastic Sheeting, Manufacture of made up Textile Articles (1721). The Compound
Growth Rate in the number of factories during the pre-liberalization period is
estimated to be 1.87 percent. (Bracketed figures show the product code, the details are
given in appendix: 1
Number of Factories and Compound Growth Rate in Post-Liberalization Period
Table 4.2 presents the number of factories in the textile product manufacturing
industry in India during post-liberalization period. The Compound Growth Rate
computed, using the procedure described in section 3.3 of the Chapter III is given in
the last row of the table.
Table 4.2
Number of Factories and Compound Growth Rate in the Post-Liberalization Period
The product group wise and year wise number of factories and their growth rate in
percentage are presented in table 4.2
Source: Calculated from ASI data
Year
NIC 0140 1711 1712 1721 1722 1723 1729 1730 1810
Textile
Sector
1992-93 3241 7529 1646 190 167 328 216 1172 2031 16520
1993-94 3367 7209 2104 219 216 369 266 1417 2846 18013
1994-95 3216 7108 2122 223 233 366 282 1669 3004 18223
1995-96 3410 8165 2168 182 235 311 250 1507 3211 19439
1996-97 3311 7808 2136 193 222 418 259 1631 3375 19353
1997-98 3562 7752 2509 177 199 393 260 1380 3004 19236
1998-99 3420 7620 2694 282 189 467 416 1722 3093 19903
1999-00 3472 7441 2931 324 353 515 385 1663 3392 20476
2000-01 3421 7131 2900 403 399 468 330 1930 3353 20335
2001-02 3155 6546 2606 426 446 446 400 1688 3273 18986
2002-03 2874 6452 2708 347 471 548 377 1861 3297 18935
2003-04 2868 6194 2882 442 471 565 410 2071 3173 19076
2004-05 2960 6228 2907 584 407 581 443 2260 3386 19756
Total 42277 93183 32313 3992 4008 5775 4294 21971 40438 248251
CGR (%) -1.09 -1.73 4.08 9.58 9.02 4.93 5.60 4.00 2.31 4.08
6. 58
While looking at the growth rate in the number of factories over the years,
1999-2000 recorded maximum number of 20476 units and minimum number of
16520 in 1992-93. Among the product groups, maximum number of 93183 units are
recorded in the product group of Manufacturing of Cotton Spinning, Processing other
than in Mills (1711) and minimum number is in the product group in the
Manufacturing of made up Textile Articles (1721) with 3992 units. It is also seen that
there are product wise and year wise fluctuations in the number of factories. The
Compound Growth Rate in the number of factories in the post liberalization period is
recorded as 4.08 percent.
Number of Factories in the Post -MFA Regime
The number of factories in the textile product manufacturing industry in India
in the post-MFA regime is given in the table 4.3. The Compound Growth Rate
computed, using the procedure described in section 3.3 of the Chapter III is given in
the last row of the table 4.3.
Table: 4.3
Number of Factories and Compound Growth Rate in the Post -MFA Regime
Table 4.3 records the year wise and product group wise number of factories
and their compound growth rate in the post-MFA regime from 2005-06 to 2009-10.
Source: Calculated from ASI data
Year
NIC
0140 1711 1712 1721 1722 1723 1729 1730 1810
Textile
sector
2005-06 3185 7319 3153 490 365 642 376 2259 4438 22227
2006-07 3187 7386 3269 529 376 679 385 2370 4714 22895
2007-08 3190 7453 3390 571 388 717 395 2486 5008 23598
2008-09 3192 7520 3515 617 401 758 404 2609 5320 24336
2009-10 3142 7181 3246 558 387 675 400 2396 4573 22562
Total 15896 36859 16573 2765 1917 3471 1960 12120 24053 115618
CGR (%) -0.25 -0.20 1.32 4.23 1.85 2.14 1.76 2.17 1.83 1.65
7. 59
Among the five year period of the post-MFA regime, the year 2008-09 marked
the maximum number of 24336 factories and the year 2005-06 with the minimum
number 2of 2227 factories. Among the product group, the maximum number of
factories of 36859 is recorded in the product group of Manufacturing of Cotton
Spinning, Processing other than in Mills, Weaving and Finishing of Cotton Textiles
on Handlooms (1711) and the minimum of 1917 factories in the product group of
Manufacturing of Making of Blankets, Shawls, Carpets (1722). The CGR attained during
the Post-MFA regime is 1.65 percent. The complete phasing out of MFA is a
significant policy shift as far as Indian textile industry is concerned.
Number of Factories in the Pre- Liberalization, Post- Liberalization and Post-
MFA Regime
A concise presentation of the growth rate of the number of factories for the
nine product group in the pre-liberalization (1980-81 to 1991-92), post-liberalization
period (1992-93 to 2004-05) and post-MFA regime (2005-06 to 2009-10) has been
made below using the diagram for easy comprehension.
8. 60
Figure: 4.1
Growth Rate in Number of Factories in Indian Textile Industry in the Pre-
Liberalization, Post-Liberalization and Post-MFA Regime
Source: Growth rate (%) from table No. 4.1, 4.2 and 4.3
A review of the growth in the number of factories in the three spells of time
reveals that the pre-liberalization period witnessed 1.87 percent growth, while the
growth rate in the post-liberalization period and post-MFA regime are 4.08 percent
and 1.65 percent respectively. A concise inquiry in to the causative factors of growth
rate is attempted in chapter VII where the important tenets of the thesis are
consolidated.
-4
-2
0
2
4
6
8
10
12
140 1711 1712 1721 1722 1723 1729 1730 1810 Textile
Sector
CGR(%)
Product Code
Pre(1980-81 to 1991-92) Post (1991-92 to 2004-05) Post MFA(2005-06 to 2009-10)
9. 61
4.2.2 Gross Fixed Capital Formation/Gross Block
Uchikawa (2001) has shown that there was a sharp acceleration in gross
investment in the first half of the 1990s. The gross fixed capital stock as per Annual
Survey of Industries (ASI) increased at the rate of 10.1 per cent per annum at 1980-81
year. A regression equation estimated for the time-series of capital stock showed that
a multiplicative dummy for the post-1990 period was significant at the 5 percent
level, confirming the acceleration of investment after the economic reforms.
Mazumdar and Sarkar (2004) showed that there was substantial increase in the
fixed capital of manufacturing industries from Rs. 16.74 lakh crores in 1980-81 to Rs.
239.28 lakh crores in 1995-96 and investment rose from 15.57 percent to 54.92
percent. The index of real capital growth had also zoomed to 280 in 1995-96 from
174 in 1980-81.Rani and Unni (2004) reported that the growth rate in fixed capital of
organized sector for the period from 1989 to 95 was 13.56 per cent and it marginally
declined to 12.09 per cent during 1994-2000. Whereas in the unorganized sector it
was 5.25 percent in 1989-95 and increased to 6.39 percent in 1994-2001. In
particular, the fixed capital growth rate in organized textile industry was 14.75
percent during 1989-95 and declined to 13.29 percent during the period between
1994-2001. The scenario was entirely different in the unorganized sector with 5.62
percent during 1989-95 and 4.28 percent in 1994-2001.Nagaraj (2008) recorded that
the Indian economy turned around after 2002-03, clocking a growth rate of 8.7 per
cent per annum based on an industrial recovery and the growth has been underpinned
by an unprecedented rise in the fixed investment. The India’s fixed investment rate –
gross fixed capital formation (GFCF) as a ratio of domestic output – has gone up by 7
percentage points in five years to reach 33 percent in 2006-07 – up from around 25
percent in the second half of the 1990s. It represents the largest increase in the
investment rate India ever witnessed, taking it close to those attained by the East
Asian Economies in their phase of rapid economic growth. Also the gross fixed
capital formation has risen from 22.8 percent of GDP at current prices in 2001-02 to
35.9 percent in 2006-07.
Thus the emerging hypotheses is that Indian manufacturing sector in general
and Indian textile industry in particular showed more inclination towards capital
intensification especially in a liberalized environment and this section seeks to
explore that hypothesis.
10. 62
In this section the average annual trend growth in gross fixed capital
formation and its acceleration/deceleration in Indian textile industry in the pre-
liberalization period, post-liberalization period and post-MFA period is discussed.
Gross Fixed Capital Formation in the Pre-Liberalization Period
The gross fixed capital formation expressed in lakhs of rupees in 9 textile
product manufacturing industry in India in pre-liberalization period is presented in
table 4.4 The Compound Growth Rate (GCR) computed using the methods briefly
described in section 3.3 of the Chapter III is given in the last row of the table
Table: 4.4
Gross Fixed Capital Formation and Compound Growth Rate in the Pre-
Liberalization Period
The product group wise and year wise growth of fixed capital formation and their
growth rate in percentage is presented in this table 4.4
(Rs.in lakhs)
Source: Calculated from ASI data
Table 4.4 shows that there are wide fluctuations in gross fixed capital
formation across the product group and year wise. Among various years maximum
gross fixed capital formation was Rs 100633.86 lakhs in 1990-91 and minimum of
Rs 52491.77 lakhs in 1988-89. Among the product groups the maximum gross fixed
capital formation of Rs.716559.99 lakhs is in the product group of Manufacturing of
Cotton Spinning, Processing other than in Mills, Weaving and Finishing (1711) and
Year
NIC 0140 1711 1712 1721 1722 1723 1729 1730 1810
Textile
Sector
1980-81 781.50 47684.96 2782.52 128.05 205.28 285.57 55.89 264.23 477.64 52665.65
1981-82 926.00 48324.00 2728.00 262.00 193.00 325.00 108.00 422.00 633.00 53921.00
1982-83 850.09 60185.96 3870.02 275.14 372.87 469.64 92.03 438.33 838.71 67392.79
1983-84 650.87 69143.12 3583.41 304.47 597.08 530.54 50.14 772.11 505.01 76136.74
1984-85 783.25 57275.47 3990.50 416.23 607.08 296.20 140.76 652.85 784.97 64947.32
1985-86 1067.26 58930.31 4617.50 229.34 432.74 564.02 142.63 666.13 1228.53 67878.44
1986-87 705.43 44615.50 6145.74 245.74 362.79 373.64 365.89 976.74 1269.77 55061.24
1987-88 823.74 55447.48 7182.73 246.76 272.66 667.63 2262.59 927.34 1504.32 69335.25
1988-89 1348.73 41785.44 3325.32 284.18 229.75 489.87 227.22 1034.81 3766.46 52491.77
1989-90 697.66 62052.63 4425.15 577.78 606.43 483.04 458.48 1921.05 3774.27 74996.49
1990-91 924.34 86134.39 5795.24 497.35 237.04 1229.10 622.22 1156.61 4037.57 100633.86
1991-92 1191.48 84980.72 4621.52 473.54 116.14 546.19 865.92 1664.57 5084.30 99544.39
Total 10750.35 716559.99 53067.65 3940.58 4232.87 6260.44 5391.76 10896.77 23904.54 835004.96
CGR(%) 2.34 3.15 5.38 8.57 -2.88 7.59 29.52 16.05 25.63 10.59
11. 63
minimum of Rs 3940.58 lakhs for the product group of Manufacturing of Fabrics or
Plastic Sheeting, Manufacture of made up Textile Articles (1721). The Compound
Growth Rate in the gross fixed capital formation in the pre-liberalization period is
estimated to be 10.59 percent.
Gross Fixed Capital Formation and Compound Growth Rate in the Post-
Liberalization Period
The gross fixed capital formation expressed in lakhs of rupees in the 9 textile
product manufacturing industry in India in the post-liberalization period is presented
in table 4.5. The Compound Growth Rate has been computed using the methods
briefly described in section 3.3 of the chapter III and is given in the last row of the
table 4.5.
Table: 4.5
Gross Fixed Capital Formation and Compound Growth Rate in the Post-Liberalization Period
(Rs.in lakhs)
Source: Calculated from ASI data
While looking at the growth rate in the gross fixed capital formation over the
years 2004-05 recorded maximum of Rs283817.25 lakhs and minimum of Rs
125127.30 lakhs in 2001-02. Among the product groups, maximum gross fixed
capital formation Rs 1945538.31 lakhs is recorded in the product group
Manufacturing Cotton Spinning and Processing other than in Mills (1711) and
Year
NIC 0140 1711 1712 1721 1722 1723 1729 1730 1810
Textile
Sector
1992-93 2061.37 109398.28 7723.61 939.91 549.79 600.86 428.33 2039.91 6414.16 130156.22
1993-94 1849.18 134884.02 15418.44 1242.21 3623.77 1747.95 638.93 4394.67 12520.49 176319.67
1994-95 1230.08 189018.05 17221.80 789.10 424.44 3380.45 5910.15 4830.08 21522.18 244326.32
1995-96 2406.59 216100.37 9450.92 849.45 809.16 1529.30 1829.30 7269.96 21224.18 261469.23
1996-97 2040.43 210014.54 10596.81 808.16 842.20 2153.90 1540.78 5448.58 11916.67 245362.06
1997-98 2645.91 212064.41 13789.32 698.22 892.17 2113.88 1525.98 7113.17 16771.17 257614.23
1998-99 1521.55 161542.05 11193.29 848.06 778.09 680.57 3973.85 4420.14 12102.83 197060.42
1999-00 4543.82 144637.46 61762.90 2221.55 936.75 1216.96 4816.96 14174.20 22665.02 256975.62
2000-01 1341.00 96485.67 27426.67 1849.33 2078.67 1653.67 3725.33 14307.67 25831.67 174699.67
2001-02 1748.89 76676.83 11625.08 3063.81 2783.81 845.71 3092.06 8600.32 16690.79 125127.30
2002-03 882.08 105884.59 26306.60 3161.64 3178.30 1264.15 2611.01 11593.40 25102.20 179983.96
2003-04 1572.53 121570.37 20350.31 3385.19 3859.57 2052.78 3487.65 20050.00 23517.90 199846.30
2004-05 2009.36 167261.70 30289.18 16271.93 3088.01 1350.00 5563.16 24453.80 33530.12 283817.25
Total 25852.78 1945538.31 263154.92 36128.56 23844.72 20590.18 39143.50 128695.90 249809.38 2732758.25
CGR(%) -1.93 -2.89 8. 77 20.76 14.27 -0.62 14.78 17.35 8.48 8.78
12. 64
minimum gross fixed capital formation among the product group is in the
Manufacturing of Making of Blankets and Shawls (1723) with Rs 20590.18 lakhs. It is
also seen that there are product wise and year wise fluctuation in the gross fixed
capital formation. The Compound Growth Rate in the gross fixed capital formation
in the post- liberalization period is recorded as 8.78 percent.
Gross Fixed Capital Formation in the Post-MFA Regime
The gross fixed capital formation expressed in rupees lakhs in 9 textile product
manufacturing industry in India during post-MFA regime is presented in table 4.6
The Compound Growth Rate has been computed using the methods briefly described
in section 3.3 of the chapter III and is given in the last row of the table.
Table 4.6
Growth Rate in Gross Fixed Capital Formation and Compound Growth Rate in
the Post- MFA Regime
(Rs. in.lakhs)
Year
NIC 0140 1711 1712 1721 1722 1723 1729 1730 1810
Textile
Sector
2005-06 2676.32 215647.4 37891.09 5174.37 3143.45 2530.91 10363.79 30906.41 70923.41 379257.12
2006-07 2792.12 226905.8 41827.56 5926.24 3485.82 2715.22 12469.03 36840.16 85400.52 418362.52
2007-08 2872.43 235460.7 45536.34 6694.14 3812.19 2872.43 14795.12 43307.80 101415.11 456766.31
2008-09 3039.16 251290.9 50984.85 7776.45 4288.12 3125.64 18055.01 52359.67 123859.92 514779.71
2009-10 2677.88 219313.3 41305.8 8368.63 3563.52 2518.84 12249.22 37573.57 83025.81 410596.60
Total 14057.93 1148618 217545.6 33939.85 18293.11 13763.07 67932.17 200987.6 464624.8 2179762
CGR (%) 0.86 1.36 3.77 13.12 4.68 1.32 7.29 7.70 7.11 5.25
Source: Calculated from ASI data
Among the five years period of the post-MFA regime, the year 2008-09
marked the maximum gross fixed capital formation of Rs 514779.71 lakhs and the
year 2005-06 with the minimum gross fixed capital formation of Rs 379257.12 lakhs.
Among the product groups the maximum gross fixed capital formation of Rs
1148618.12 lakhs is recorded by the product group Manufacturing of Cotton Spinning,
Processing other than in Mills, Weaving and Finishing of Cotton Textiles on
Handlooms (1711) and the minimum of Rs 13763.07 lakhs by the product group
13. 65
Manufacturing of all types of Threads, Cordage, Ropes, Twines and Nets etc (1723).
The CGR attained during the Post-MFA regime is 5.25 percent. The complete phasing
out of MFA is a significant policy shift as far as Indian textile industry is concerned.
Gross Fixed Capital Formation and Compound Growth in the Pre-
Liberalization, Post-Liberalization and Post-MFA Regime
The growth rate of the gross fixed capital formation for the product group in
the pre-liberalization period, post-liberalization and post-MFA regime has presented
in the Fig 4.2
Figure: 4.2
Growth Rate in Gross Fixed Capital Formation in Indian Textile Industry in the
Pre- Liberalization, Post-Liberalization and Post-MFA Regime
Source: Growth rate (%) from table No 4.4, 4.5 and 4.6
-5
0
5
10
15
20
25
30
35
140 1711 1712 1721 1722 1723 1729 1730 1810 Textile
Sector
CGR(%)
Product Code
Pre(1980-81 to 1991-92) Post(1992-93 to 2004-05 Post-MFA(2005-06 to 2009-10)
14. 66
Gross Fixed Capital Formation growth rate in the pre- liberalization, post-
liberalizationand post-MFA regime is given figure 4.2 Growth rate for the period of
pre-liberalization is 10.59 percent, for the post-liberalization period it is 8.78 percent
and post-MFA regime recorded 5.25 percent.
4.2.3 Employment
There is unanimity amongst the scholars that the organized manufacturing
sector registered “jobless growth” during the period from1980-81 to 1990-91. While
the average annual rate of growth of gross value added during this period was about
8.66 percent the corresponding average annual employment growth was merely 0.53
percent. The resultant employment elasticity was 0.06 (Kannan and Raveendran,
2009).
The employment stagnation in the 1980s was also confirmed by the studies of
World Bank (1989), Fallon and Lucas (1993), Papola (1994), Ghose (1994), Nagaraj
(1994), Kannan (1994) Bhalotra (1998), Dutta Roy (1998) and Goldar (2000).
The growth of employment in the organized manufacturing sector during the
1990’s has also been analyzed by a number of researchers and the general consensus
has been that employment growth picked up considerably during the first half of the
1990s. Goldar (2000) showed that employment in the organized manufacturing sector
registered an impressive growth of 4.03 percent during the period from 1990-91 to
1995-96 comparing favorably with the growth rate achieved in the 1970s (3.8 per
cent). Kannan and Raveendran, (2009) again argue that for the period as a whole as
well as for two separate periods – the pre and post reform phases – the picture that
emerges is one of “jobless growth”. One set of industries was characterized by
employment creating growth while another set by employment displacing growth.
Over this period there has been acceleration in capital intensity at the expense of
employment generation.
Many studies argued that the effects of economic reforms on the employment
situation in India have been pessimistic in the post-reform period also (Mundle 1992,
1993; Deshpande 1992; Bhattacharya and Mitra 1993, Agarwal and Goldar 1995;
Kundu 1997). The impression that one would gather from these studies about the
prospects of employment growth in manufacturing in the post-reform period is
15. 67
proven to be wrong by the marked acceleration that has taken place in employment
growth in organized manufacturing in the 1990s.
This is the background against which this section examines the employment
implications of growth performance in terms of growth in employment so as to
further probe the “jobless growth” phenomenon reported for earlier but shorter
periods and to subject the examination of the growth and employment performance in
terms of product groups to find if there are any discernible patterns in Indian textile
industry.
Employment in the Pre- Liberalization Period
Table 4.7 presents the employment (total number of persons engaged) in the 9
textile product manufacturing industry in India during the pre-liberalization period.
The Compound Growth Rate (CGR) has been computed using the methods described
in section 3.3 of the chapter III is given in the last row of the table 4.7
Table: 4.7
Employment and Compound Growth Rate in the Pre- Liberalization Period
Source: Calculated from ASI data
Year
NIC 0140 1711 1712 1721 1722 1723 1729 1730 1810
Textile
Sector
1980-81 - - - - - - - - - -
1981-82 175782 1382312 79614 5472 14852 9198 8301 14829 49514 1739874
1982-83 164354 1243298 86807 5239 16998 8117 7548 16994 49108 1598463
1983-84 177633 1305169 90841 5453 15161 7947 7513 17213 50020 1676950
1984-85 124212 1323029 90605 5081 16810 8657 7522 20408 52760 1649084
1985-86 116141 1317595 88845 4464 17384 10577 6810 18194 58391 1638401
1986-87 134766 1140331 103210 4734 11660 10528 7069 20408 60303 1493009
1987-88 133522 1147526 97240 4028 9396 9026 6048 19075 59141 1485002
1988-89 115480 1136836 100872 5356 9733 11033 8089 26463 70790 1484652
1989-90 117091 1088444 89945 6210 8168 10991 6675 20704 84200 1432428
1990-91 134853 1127639 103939 6638 13328 13019 7764 30307 94832 1532319
1991-92 124824 1105508 100480 5711 8459 16906 7477 33699 103375 1506439
Total 1518658 13317687 1032398 58386 141949 115999 80816 238294 732434 17236621
CGR (%) -2.93 -2.06 1.80 1.41 -6.41 6.47 -0.43 7.35 8.06 1.47
16. 68
It is clear from the table 4.7 that there are wide fluctuations across the product
group and year wise. The aggregate employment in terms of total number of persons
engaged is 1739874 in 1981-82 which is the maximum and the minimum number of
persons engaged is 1432428 in 1989-90. Among the product group the maximum
number of persons engaged is 13317687 in the product group of the Manufacturing
of Cotton Spinning and Processing other than in Mills (1711) and minimum number
of person engaged is 58386 for the product group of Manufacturing of Fabrics or
Plastic Sheeting, Manufacture of made up Textile Articles (1721). The Compound
Growth Rate in the number of people engaged during the pre-liberalization period is
estimated to be 1.47 percent.
Employment in the Post- Liberalization Period
Table 4.8 provides the employment (total number of persons’ engaged) in the
9 textile product manufacturing industry in India during the post-liberalization period.
The Compound Growth Rate has been computed using the methods described in
section 3.3 of the chapter-3 is given in the last row of the table 4.8.
Table 4.8
Employment and Compound Growth Rate in the Post- Liberalization Period
Source: calculated from ASI data
Year
NIC 0140 1711 1712 1721 1722 1723 1729 1730 1810
Textile
Sector
1992-93 114668 1072389 96716 6931 5906 13107 9281 31859 115509 1466366
1993-94 135943 1083866 107220 8823 5270 11849 7555 36805 133909 1531240
1994-95 139582 1062669 134639 9758 10832 13949 8703 48677 190489 1619298
1995-96 129087 1075586 115915 9685 9156 17647 10112 50919 229878 1647985
1996-97 152828 1231939 124207 8677 9334 16820 9616 51771 250805 1855997
1997-98 159248 1145709 117731 9411 8362 20588 10944 59105 253036 1784134
1998-99 166776 1129759 144027 9928 10114 23208 11258 45531 273210 1813811
1999-00 115626 1061454 147168 13911 13335 16514 18929 58226 275540 1720703
2000-01 142967 966790 170959 21979 11517 30491 18912 62577 294746 1720938
2001-02 123528 936597 176155 26086 18562 24696 18985 87566 329401 1741576
2002-03 103568 881312 138218 23600 16635 20436 21116 80806 316223 1601914
2003-04 105357 844770 155801 20622 21068 26702 19031 90525 335050 1618926
2004-05 91979 803913 163758 33257 24712 26946 20449 137349 378542 1680905
Total 1789237 14099202 1977756 244849 189569 287378 206036 1002846 3825289 23622162
CGR (%) -2.46 -2.80 4.16 13.95 11.73 6.06 9.05 10.98 8.76 6.61
17. 69
The table 4.8 shows that there are wide fluctuations across the product group
and in different years during the post-liberalization period. The aggregate
employment in terms of total number persons engaged among the years, maximum
number of persons engaged is 1855997 in 1996-97 and minimum number of persons
engaged is 1466366 in 1992-93. Among the product group the maximum number of
persons engaged is 14099202 in the product group of Manufacturing of Cotton
Spinning, Processing other than in Mills (1711) and minimum number of person
engaged is 189569 for the product group of Manufacturing of Fabrics or Plastic
Sheeting, Manufacturing of Making of Blankets and Shawls (1722). The Compound
Growth Rate in the number of persons engaged during the post-liberalization period is
estimated to be 6.61 percent.
Employment in the post- MFA Regime
Table 4.9 presents the employment (total number of persons engaged) in the 9
textile product manufacturing industry in India during the post-MFA regime. The
Compound Growth Rate has been computed using the methods described in section
3.3 of the chapter III is given in the last row of the table 4.9.
18. 70
Table 4.9
Employment and Compound Growth Rate in the Post- MFA Regime
Source: calculated from ASI data
Among the five years period of the post-MFA regime, the year 2009-10
marked the maximum number of persons engaged which is 2127034 and the year
2005-06 with the minimum number of person engaged as 1818369. Among the
product groups the maximum number of persons engaged is 4150037 in the product
group Manufacturing of Cotton Spinning, Processing other than in Mills, Weaving and
Finishing of Cotton Textiles (1711) and the minimum of 83382 in the product group
Manufacturing of Making of Blankets, Shawls, Carpets, Rugs and Other Similar Textiles
products (1722). The CGR attained during the Post-MFA regime is 2.04 percent. The
complete phasing out of MFA is a significant policy shift as far as Indian textile
industry is concerned.
Employment in the Pre- Liberalization, Post-Liberalization and Post-MFA
Regime
The growth rate of the employment (total number person enaged) for the
product group during the pre-liberalization period, post-liberalization and post-MFA
regime is given in figure 4.3
Year
NIC 0140 1711 1712 1721 1722 1723 1729 1730 1810
Textile
Sector
2005-06 108080 802449 185242 42181 24766 24425 21145 161130 448951 1818369
2006-07 111895 859538 177272 28609 14385 29788 20466 127293 536445 1905691
2007-08 110584 844264 183067 31165 14563 31431 21557 139331 594877 1970839
2008-09 109288 829261 189051 33948 14743 33163 22706 152508 659673 2044341
2009-10 108007 814525 195230 36980 14925 34992 23917 166931 731527 2127034
Total 547854 4150037 929862 172883 83382 153799 109791 747193 2971473 9866274
CGR (%) -0.25 -0.06 1.71 -0.92 -9.41 8.61 3.56 2.55 12.56 2.04
19. 71
Figure: 4.3
Growth Rate in Employment in Indian Textile industry in the Pre-
Liberalization, Post-Liberalization and Post-MFA regime
Source: Growth rate (%) from table No 4.7, 4.8 and 4.9
The analysis of growth rate in employment for the pre- liberalization (1980-81
to 1991-92), post-liberalization (1991-92 to 2004-05) and post-MFA regime (2005-06
to 2009-10) shows that they are 1.47 percent and 6.67 percent and 20.04 percent
respectively.
-15
-10
-5
0
5
10
15
20
140 1711 1712 1721 1722 1723 1729 1730 1810 Textile
Sector
CGR(%)
Product code
Pre (1980-81 to 1991-92) Post (1992-93 to 2004-05) Post-MFA 2005-06 to 2009-10
20. 72
4.2.4 Gross Value Added (Output)
Uchikawa (1999) observed that the growth rate of gross value added (GVA) is
a good indicator of market conditions. As rapid growth of GVA in an industry
generates an expectation that the industry will grow in the future, investment in the
industry will increase. Gross value added and gross fixed capital formation of textile
products including wearing apparel industry had grown throughout the 1980s and
their growth rates of GVA and GFCF accelerated in the 1990s. Goldar (2000) studied
the growth rate of gross value added (at constant prices) for different two-digit
industries have reported that the growth rate of GVA in Indian manufacturing sector
was 8.67 percent in 1980s and marginally declined to 7.43 percent in the 1990s. The
rate of growth in Indian textile products was 10.44 per cent during 1990-97 as
compared to 14.63 per cent during 1980s.
Balakrishnan and Babu (2003) found that the annual average rate of growth in
the nineties had risen almost across the board at two digit level of industry.
Nevertheless, they argued that the acceleration is not particularly impressive for what
is often hailed as the most significant policy regime shift since 1950. Rani and Unni
(2004) have shown that value added in the organized manufacturing sector registered
an impressive growth rate of 8.25 per cent during 1989-95 as compared to 1984-90 at
7.20 per cent and 1994-2000 at 6.94 per cent. Whereas in the unorganized sector it
was negative 0.99 per cent in 1989-95 and increased to 6.92 per cent in 1994-2001.
The growth rate in organized textile industry was 6.41 per cent during 1989-95 and
declined to 2.86 per cent in 1994-2000. In the unorganized textile industry growth in
value added was (-2.88) per cent in 1989-95 and it grew by 6.26 percent in 1994-
2001.The analysis indicates that economic reform policies have differential impact on
various industry groups.
Nagaraj’s (2003) findings show that while the total manufacturing gross value
added grew at over 8 per cent per annum in real terms during 1981-87, the registered
manufacturing segment recorded a growth over 10 per cent per annum with reference
to National Account Statistics (NAS) data 1989.
Further, it is observed that, since 1980-81 output in the manufacturing sector
has grown at 7 per cent per year. Nagaraj (2003) It is further records that, industrial
21. 73
output growth during the last two decades has improved compared to the previous
period of relative stagnation. But contrary to both the euphoria and apprehension with
the acceleration of reforms there has been little change in the trend growth rate of
output in the 1990s compared to the previous decade. Moreover, since the mid 1990s,
there are distinct signs of a slowdown in growth for seven years now and “stalled”
reforms since the mid-1990s are widely believed to be responsible for the industrial
deceleration. Balakrishnan (2005) does not provide any support for his argument
about acceleration in the rate of growth during the post-reform period. Kaur (2007)
argued that there is no denying the fact that reforms ushered in a new era of growth
and development. The liberalized policies adopted since 1991-92 not only accelerated
the overall growth rates but also develop the confidence of foreign investors in the
Indian industry. Kannan and Raveendran (2009) pointed out that, in terms of output
growth, all the manufacturing industries seem to have done quite well, and many of
them registered double digit growth rates during the post-reform period. Unlike in the
case of employment, no polarization is discernible. The growth rate of GVA in Indian
textile industry was 4.33 per cent for the period from 1981-82 to 1991-92 and
increased to 5.34 per cent in the period beween1992-93 to 2004-05.
As opposed to the common view that acceleration in average growth is
credited to policy reforms initiated in 1991, Delong (2004) argued that acceleration
began in the early or mid 1980s could not be due to policy in initiatives, though it is
further admitted that the rapid growth in the second half of the 1980’s could not be
sustained without the second wave of reforms of the 1990’s. Rodrik (2004) joins
Delong in stating that the reforms undertakes in the 1990’s cannot be accepted as a
turning point in the Indian manufacturing.
As the debate continues for and against the positive impact of reforms on the
growth of acceleration of Indian manufacturing industries, the present study re-
examine the issues with reference to Indian textile industry.
Gross Value Added in the Pre- Liberalization
Table 4.10 presents the gross value added (output) in the textile product
manufacturing industry in India during the pre-liberalization period. The Compound
22. 74
Growth Rate (CGR) has been computed using the methods described in section 3.3 of
the chapter-3 is given in the last row of the table 4.10.
Table: 4.10
Gross Value Added and Compound Growth Rate in the Pre- Liberalization Period
(Rs. in.Lakhs)
Source: Calculated from ASI data
It is clear from the table 4.10 that there are wide fluctuations of gross fixed
capital formation across the product group and year wise. Among the various years
maximum gross value added was Rs 384145.3 lakhs in 1990-91 and minimum of Rs
229532.7 lakhs in 1981-82. Among the product group the maximum gross value
added is Rs.2773155.66 lakhs in the product group of Manufacturing of Cotton
Spinning, Processing other than in Mills, Weaving and Finishing (1711) and the
minimum of Rs 17068.2 lakhs for the product group of Manufacturing of Embroidery
Work, Zari Work and Making ornamental Trimmings (1729). The Compound Growth
Rate in the gross value in the pre-liberalization period is estimated to be 8.09 percent.
Year
NIC 140 1711 1712 1721 1722 1723 1729 1730 1810
Textile
Sector
1980-81 4176.41 207716.73 9644.15 1140.12 1720.77 1830.65 1046.37 2120.97 5116.94 234513.1
1981-82 4081.89 197547.12 12004.65 1194.76 2457.38 1928.34 1136.92 3331,09 5854.65 229532.7
1982-83 5337.6 197128.94 11999.02 1100.39 2894.69 2261.81 1175.2 3387.8 6684.06 231969.5
1983-84 9292.68 232136.96 14090.06 1078.8 2254.22 2652.91 1143.53 4891.18 6541.28 274081.6
1984-85 5596.55 213857.03 13821.69 2130.65 2453.57 5950.7 1078.88 3703.37 8805.26 257397.7
1985-86 6819.8 205498.07 16335.65 999.23 1942.77 2757.93 1015.47 4304.72 8563.81 248237.4
1986-87 6515.2 232116.13 18134.06 1223.69 1957.91 2886.2 1195.64 3844.12 11226.81 279099.8
1987-88 7408.08 205475.63 20047.35 1490.25 1605.15 3299.44 1377.44 4626.04 14944.99 260274.4
1988-89 8585.9 212694.78 14797.36 1666.46 1683.45 2908.75 1425.42 6307.11 19681.56 269750.8
1989-90 7564.54 291561.57 20753.72 2164.78 2748.36 3333.14 2096.97 9759.07 24529.45 364511.6
1990-91 7829.47 306020 19852.11 1967.37 3564.21 4857.89 1515.26 9718.42 28820.53 384145.3
1991-92 8793.55 271402.82 21640.99 2749.75 2743.71 3710.47 2862.03 10375.63 39849.95 364128.9
Total 82000.78 2773155.66 193120.2 18905.49 28025.81 38377.89 17068.21 66369.43 180618.6 3397642
CGR (%) 6.08 3.26 6.76 7.32 1.90 6.32 7.13 13.54 20.52 8.09
23. 75
Gross Value Added in the Post- Liberalization Period
The gross value added (output) in the 9 textile product manufacturing industry in
India in the post-liberalization period is presented in table 4.11. The Compound
Growth Rate has been computed using the methods described in section 3.3 of the
chapter III is given in the last row of the table.
Table 4.11
Gross Value Added and Compound Growth Rate in the Post- Liberalization Period
(Rs.in Lakhs)
Source: Calculated from ASI data
The table 4.11 presents gross value added (output) during the post-
liberalization period and wide fluctuations gross value added across the product group
and in different years have been observed. Among the various years maximum gross
value added is Rs 797437.5 lakhs in 2004-05 and minimum of Rs 404066.3 lakhs in
1992-93 have also been observed. Among the product group the maximum gross
Year
NIC 0140 1711 1712 1721 1722 1723 1729 1730 1810
Textile
Sector
1992-93 9095.82 302981.8 22602.46 3665.85 3290.42 4380.84 1911.55 12170.52 43967.08 404066.3
1993-94 14431.99 342617.6 41470.92 3226.69 3337.9 4369.12 3026.09 16152.69 86908.04 515541.1
1994-95 5954.69 369969.2 36268.94 5380.94 3359.19 4128.67 3133.74 15637.91 87957.96 531791.2
1995-96 13685.75 307906.4 24164.59 3515.56 2618.86 4892.35 3039.2 20500.31 75375.23 455698.2
1996-97 15873.26 354937.8 24597.16 4334.34 3603.8 5420.64 4441.76 24876.89 67572.72 505658.4
1997-98 20199.89 360131.1 25371.58 3588.1 2240.77 5773.33 3152.52 17817.87 68511.7 506786.9
1998-99 15017.21 325058 38586.18 4296.42 5999.72 3714.4 7568.69 17742.71 88281.71 506265.1
1999-00 13721.13 416264.7 84689.63 11998.74 11149.25 9542.53 8673.71 40781.05 134942.5 731763.3
2000-01 12996.47 448101.2 64569.97 13218.71 9728.53 6996.04 19406.77 48998.32 129375.4 753391.4
2001-02 13463.36 400589.8 50142.69 14565.11 13812.56 6973.33 10823.53 36025.38 117251.2 663646.9
2002-03 10291.91 435620.2 56024.15 11888.34 12712.99 8088.9 12217.01 44966.75 137085.8 728896.0
2003-04 12911.47 393654.5 70878.51 17564.68 13113.62 9184.54 15260.34 52645.61 122362.2 707575.4
2004-05 23872.41 408977.8 81579.1 25487.44 13735.93 7870.9 15362.62 62402.69 158148.6 797437.5
Total 181515.4 4866810.0 620945.9 122730.9 98703.54 81335.59 108017.5 410718.7 1317740 7808518
CGR(%) 3.77 2.53 10.06 18.56 17.48 6.81 20.41 13.98 8.27 11.32
24. 76
value added is Rs. 4866810.0 lakhs in the product group of Manufacturing of Cotton
Spinning and Processing other than in Mills (1711) and minimum of Rs 98703.54
lakhs for the product group of Making of Blankets, Shawls, Carpets, Rugs and Other
Similar Textiles Products (1722). The Compound Growth Rate in the gross value added
for the pre-liberalization period is estimated to be 11.32 percent.
Gross Value Added in the Post- MFA regime
Table 4.12 presents the gross value added (output) in the textile product
manufacturing industry in India during the post-MFA regime. The Compound
Growth Rate has been computed using the methods described in section 3.3 of the
chapter III and is given in the last row of the table. This is given in the last row of
table 4.12.
Table: 4.12
Gross Value Added and Compound Growth Rate in Post- MFA Regime
(Rs.in Lakhs)
Year
NIC 0140 1711 1712 1721 1722 1723 1729 1730 1810 Total
2005-06 36180.71 549385.5 95228.61 15665.35 21567.56 18424.51 17782.62 96840.11 300746.9 1322822
2006-07 32664.94 698934.5 118500.7 59078.74 30573.88 19651.33 20670.45 115114.4 429852.2 1547041
2007-08 42491.94 778787.4 138152 45490.62 30538.33 18528.13 31318.53 141662.1 565081 1759050
2008-09 44436.53 811375.6 150596.1 48501.45 42443.22 26515.14 35726.87 163003.7 663700.8 1938299
2009-10 79129.31 869492.2 118811.3 51044.72 57971.78 33198 35972.22 115804.6 441505.9 1802930
Total 234903.4 370797.5 621288.7 219780.9 183094.8 116317.1 141470.7 632424.9 240088.7 8370142
CGR (%) 7.45 9.74 12.26 22.91 18.32 10.82 21.44 14.9 22.35 15.58
Source: Calculated from ASI data
Among the five years period of the post-MFA regime, the year 2008-09
marked the maximum gross value added that is Rs 1938299 lakhs and 2005-06 with
the minimum gross fixed capital formation of Rs 379257.12 lakhs. Among the
product group the maximum gross value added of Rs 632424.9 lakhs is recorded by
the product group Manufacturing of Knitted or Crocheted Textile Products (1730) and
the minimum of Rs116317.1lakhs by the product group of Manufacturing of all types
25. 77
of Threads, Cordage, Ropes, Twines and Nets etc (1723). The CGR attained during
the Post-MFA regime is 15.58 percent. The complete phasing out of MFA is a
significant policy shift as far as Indian textile industry is concerned.
Gross Value Added (Output) in the Pre- Liberalization, Post-Liberalization and
Post-MFA Regime
The growth rate of the gross value added (output) for the 9 product group
during the pre-liberalization period (1980-81 to 1991-92), post-liberalization (1991-
92 to 2004-05) and post-MFA regime (2005-06 to 2009-10) periods has been
presented in the figure 4.4.
Figure: 4.4
Growth Rate of Output in Indian textile industry in the pre- liberalization, Post-
liberalization and post-MFA regime
Source: Growth rate (%) from table No 4.10, 4.11 and 4.12
0.00
5.00
10.00
15.00
20.00
25.00
140 1711 1712 1721 1722 1723 1729 1730 1810 Textile
Sector
CGR(%)
Product Code
Pre (1980-81 to 1991-92) Post(1992-93 to 2004-05 Post-MFA(2005-06 to 2009-10)
26. 78
In the pre-liberalization period gross value added increased at an annual
average rate of 8.09 percent, this has been 11.32 percent in the post-liberalization
period. The post-MFA regime recorded a high rate of 15.58 percent.
4.3 The Growth Rate of Textile Industry in India in the Pre-Liberalization,
Post- Liberalization and Post-MFA Regime
A study of the performance of an industry in different periods of time during
which some policy changes appeared would enable to bring out of the implications of
such policy changes. It is in this context that study of the overall growth performance
of textile industry in terms of growth in (i) Number of Factories (ii) Gross fixed
capital formation (iii) Employment and (iv) Output, in the pre-liberalization (1980-81
to 1991-92), post- liberalization (1991-92 to 2004-05) and post-MFA regime (2005-
06 to 2009-10) have been undertaken. This is condensed in table no 4.13
4.3.1 Pre-liberalization Period
Among the different indicators, Gross fixed capital formation has registered
the highest growth rate of 10.59 percent followed by output with 8.09 percent growth
and Number of units with 1.87 percent. Comparatively a poor performance has been
recorded in employment which is 1.47 percent. This is contents in table no 4.14.
4.3.2 Post-Liberalization Period
Among the different indicators examined in the post-liberalization period,
Output registered the highest growth rate of 11.32 percent followed by Gross Fixed
Capital Formation with 8.78 percent and Employment with 6.61 percent. The
minimum of 4.08 percent was registered in the case of number of factories.
4.3.3 Post-MFA Regime
In the post MFA regime, the Industry’s growth rate among the different
indicators shows that output continued to register highest growth percentage of 15.58,
followed by Gross Fixed Capital Formation with 5.25 percent. The minimum of 1.65
percent is registered in Number of factories and employment recorded 2.04 percent
growth.
27. 79
4.3.4 A Comparative Analysis of the Overall Growth Rate of Textile industry
in India in the Pre-Liberalization, Post- Liberalization and Post-MFA
Regime
The growth rate of textile industry in India in the pre-liberalization, post-
liberalization and post-MFA regime is given in fig 4.5
Figure: 4.5
The Growth Rate of Textile Industry in the Pre- liberalization, Post-
liberalization and Post-MFA Regime
Source: Growth rate (%) from Table No (4.13)
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
140 1711 1712 1721 1722 1723 1729 1730 1810 Total
CGR(%)
Product code
Pre(1980-81 to 1991-92) Post(1992-93 to 2004-05) Post-MFA(2005-06 to 2009-10)
28. 80
4.4 Conclusions:
• The average annual trend growth rate in number of factories at the aggregate
and product group level witnessed wide variations.
• It is evident that the intra-industry growth rates have fluctuated with in a small
range in a protected environment indicating balanced growth in the
establishment of new units.
• During the period of study from 1980-81 to 2009-10, it has been observed in the
number of factories grew at an average rate of 2.53 percent per annum with a
negligible acceleration over time.
• The rate of growth of gross fixed capital formation was 7.87 per cent during the
entire period of analysis. The pre and post-liberalization periods have relatively
higher growth in capital formation than the post-MFA regime. The single most
reason could be the total phasing out of Multi-Fiber Agreement (MFA) and
ushering in an era of competition. To face the competition, the entrepreneurs
might have embarked upon cost cutting strategies through advanced technology
and automated machines warranting heavy investments in capital assets
especially in plant and machinery.
• In the case of employment growth, the post-liberization scenario of the industry
is surprisingly better with 6.61 annual average growth than the pre-reform
period. The annual average growth rate was 2.04 percent during post-MFA
regime; we noted here that the negative growth in employment is due to the
labour saving technological advancement in the Indian textiles industry.
• The average growth of output in textile industry during pre-liberalization period
was 8.09 percent.
• The industry’s output growth rate marginally improved to 11.32 percent during
post-reform period. In other words the growth momentum achieved in the pre-
liberalization period accelerated to the post-MFA regime also. It is to be noted
that the inter product group variations in growth rates were not significant and
uniform throughout the post reform period.
• The performance of textile industry during the post-MFA regime recorded a significant
annual growth rate of 15.58 percent.