The Indian Textile Industry in 2005
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Abstract:
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The Multi Fibre Arrangement (MFA) that came to an end on January 1, 2005 has
opened up a plethora of opportunities for the Indian textile industry. With
textiles accounting for almost 20 percent of Indian exports, and the industry
and allied areas providing employment to around 80 million people in India, the
Indian government is turning its attention to removing the bottlenecks that
hinder its growth.
The Indian textile industry has the advantages of high operational efficiencies
in spinning and weaving, low-cost skilled labour, availability of raw materials
and design capabilities.
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Yet, infrastructural bottlenecks like the
transaction time at ports, inland transportation time, lack of
initiative by textile manufacturers to go in for technological
upgradation, fragmentation of the Indian textile industry etc.,
have been limiting the growth of the industry.
Analysts have a few recommendations to make on ways to increase
the competitiveness of the Indian textile industry. The
government should encourage the closure of non-competitive
mills; and exporters should move up the value chain by focusing
on apparel exports rather than fibre exports. Also, Indian
companies should acquire companies abroad to gain direct entry
into markets for value-added products in the European, Japanese,
and US markets.
Issues:
» The evolution of the Indian textile industry.
» The different factors that determine the structure of the industry.
» The strengths and weaknesses of the Indian textile industry.
» The opportunities for the Indian textile industry under the new global textile
regime.
» The chief challenges faced by the Indian textile industry and how these
challenges may be met.
» The outlook for the industry and to discuss consolidation as an option for the
future.
Contents:
Keywords:
Indian textile industry, Multi Fibre Arrangement (MFA),
Apparel exports, Cotton textile exports, Import quota restriction, Confederation
of Indian Industry (CII), Value chain, KSA Technopak, Technology Upgradation
Fund Scheme (TUFS), Vision 2010, Reliance Industries, Indorama Synthetics India,
NAFTA (North American Free Trade Agreement), WTO (World Trade Organisation),
Arvind Mills, Textile Industry, Post-MFA, Largest Exporter, Per Cent Global, China Hong Kong
The Indian Textile Industry in 2005
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