GLOBALIZATION OF INDIAN TEXTILES

PRESENTED BY JAYANTHI.V SAVITHA.K

INTRODUCTION

What is globalisation? Initiation and development-1990s

Largest textile industry

INDIAN TEXTILE INDUSTRY BEFORE GLOBALISATION

Economic environment Problems faced by textile industry Market liberalization Expected market trends

Required competencies

POLICY
"The National Textile Policy 2000.

Increased global competition in the post

2005 trade regime under WTO

Huge import volume of cheap textiles from other Asian neighbors

High production cost with respect to other

TO BE CONTINUED
Use

of outdated manufacturing

technology
Poor

supply chain management and

huge transit cost

Huge

unorganized and decentralized

MAJOR RAW MATERIAL

Nearly

56% of yarn produced is made of

cotton.
Country

produces nearly 23 varieties of

cotton.
India

is the second largest player in the

world cotton trade.

OTHER RAW MATERIAL

Largest producer of jute Second largest producer of silk Third largest producer of cotton, accounting for nearly 16% of global production

Third largest producer of cellulosic fibre/yarn

Fifth largest producer of synthetic fibres/yarn

Eleventh largest producer of wool

GOVERNMENT REGULATIONS&POLICIES

Technology upgradation fund scheme Policy related to foreign investment

Upgrading infrastructure

AFTER GLOBALIZATION WHERE INDIA STANDS ?

competitive environment
import intensive and inward looking Approximate manufacturing units Open market policy

INDUSTRY HAS WITNESSED A CHANGE IN REGULATIONS

Post 1985 Emphasis on small scale sector Pre 1985

Emphasis on increasing scale

Importance given to cotton textiles Favourable fiscal treatment given to powerlooms (mainly tiny and smallscale units) as compared to composite mills Most segments reserved for smallscale industry (SSI)* Restrictions on installation of automatic looms

Many segments (especially readymade garments, knitwear and hosiery) deserved from reservation for SSI Schemes for technology upgradation and modernisation introduced Multifibre approach adopted; emphasis on man made and synthetic fibres, in addition to cotton Taxation structure made simpler

ADVANTAGES

Large raw material base Positive developments in the Textile Policy

Flexibility in production Product development and design capabilities

TO BE CONTD

Strong contribution to Indian Economy Industry functions in the form of clusters

Sector is diverse.
large domestic market, tradition, skilled employees

DISADVANTAGES
regulation and taxes favor small-scale family workshops inflexible labor laws (government approval needed for firing) underdeveloped transportation infrastructure (ports) production scattered all over India complicating fast exports

MAJOR COMPETITORS

China Korea Taiwan Turkey

Thailand
Indonesia

KEY PLAYERS

CONCLUSION
Employment Development Economic vision

of machineries

growth

THANK YOU