PRESENTATION ON

“A STUDY OF EXPORT COMPETITIVENESS ON INDIAN TEXTILE INDUSTRY”

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF
MASTER IN BUSINESS ADMINISTRATION
SUBMITED BY
ASHISH SAXENA
(MBA-IV)

UNDER THE GUIDANCE OF

Dr. SHIKHA SHARMA
(Professor ABS)
AMITY UNIVERSITY RAJASTHAN
 Introduction
 It contributes 14% to the industrial production
 4% to the country's gross domestic product (GDP)
 17% to the country‟s export earnings.
 Long tradition of excellence in textile
 It provides direct employment to over 35 million people
 It is the second largest provider of employment after agriculture.
India earns about 27% of its total foreign exchange through textile
exports.
 Scope & Objectives of the study
 The objective of this study is to assess the competitiveness of Indian
textile industry.
 India‟s textile industry is one of the economy‟s largest.
 India possesses many strengths and opportunities in textile sector.
 The industry is inherent with lot of experience, availability of cheap
labour, abundant raw material and supporting government
initiatives.
 Find out the competitor of India in world Export.
 Industry Profile
 India is the largest producer of jute

 The top exporter of cotton yarn with share of 25% in the world
trade

 It is the second largest producer of cotton yarn and silk

 It has the second largest spindalge in the world

 The largest producer of cotton

 It is the fifth largest of synthetic fiber/yarn

 Major Players
 Vardhman Textiles: Biggest world class textile group
manufacturing varied range of goods for the global textile
market.
 Welspun India: Ties with 12 major retailers for its products.
 Century mills- Asia‟s largest composite 100 per cent cotton
textile mill.
 Bombay Dyeing: one of the largest producers of textiles. It
produces various products.
 Aditya Birla Group: Most diversified conglomerate Its key
business segments include viscose filament yarn
(VFY), carbon black, branded garments, textiles and insulators
with its manufacturing units.

 Raymond Ltd: US$ 300 million plus conglomerate more than

60% of market share in India, Raymond Ltd. is today the
largest integrated producer of fabric in the world.

 Alok Industries: Manufacturer of best apparel fabrics.

 Major Production Center's
 Amritsar  Ahmadabad
 Phagwara  Surat
 Ludhiana  Mumbai
 Bhiwani  Bengaluru
 Delhi  Chennai
 Faridabad  Coimbatore
 Modinagar
 Madurai
 Raurkela
 Kanpur
 Tirrupur
 Kolkata
 Research Methodology
 REVEALED COMPARATIVE ADVANTAGE (RCA) is used
by BALASSA in 1965.
 It is commonly used measure of export competiveness.
 RCA is calculated as the ratio of a country„s export share in
world trade for a specific commodity or a group of
commodities.
 RCA for country “I” and commodity “j” (vis-à-vis the world)
is given as: RCAij = (Xij/Xwj)/(Xi/Xw)
Where,
 Xij = ith country„s export of commodity „j‟

 Xwj= world export of commodity „j‟

 Xi = total exports of country „I‟

 Xw = total world export

 Revealed Comparative Advantage:

 India to World / World to World (TEXTILE)

India to World / World to World (All Products)

 TEXTILE include 11 sub items in the category which can be
seen in the below table. HS CODE 59 category group named
Impregnated, coated, covered or laminated textile fabrics;
textile articles of a kind suitable for industrial use.
 India Export:

 The above figure represents the year exports of TEXTILE of

India, also the total of exports from 2004-12. The figures are
taken from INTRACEN.ORG, the figure here represents the
total of TEXTILE exports from India to rest of the world. This
figure includes the total 11 sub items of TEXTILE sector
  World Export:

 The above figure shows the year on year exports of TEXTILE

over the world, with the total of exports from 2004-12. The
figure represents the total of exports around the world, a total
of all countries and also the sum of exports from year 2004-
12. It includes 11 sub items of TEXTILE sector.
 The RCA has been calculated on each items of HS code 59
which can be seen in the above table.

 From the above table, values which are = / > then 1, has the RCA
 Export Growth
2.5

1.5

0.5

0
Exported RATIO in Exported RATIO in Exported RATIO in Exported RATIO in Exported RATIO in Exported RATIO in Exported RATIO in Exported RATIO in
2004 2005 2006 2007 2008 2009 2010 2011

 The growth ratio of TEXTILE exports of India year on year is shown in

the above graph, keeping the base year 2004. The graph explains that the
trend of growth of exports of TEXTILE is moving upwards but with a
slow pace yet it is increasing.
 Findings &Analysis
 China is the biggest threat for India.
 Infrastructure: China is much ahead of India. The Chinese
Government has been investing a lot as compared to India for
the development

 Labour reforms: The labour reforms in India are extremely

stringent which hampers the growth of textile manufacturers to
a great extent.
 International trade trends: China has much more better
FORIGN TRADE POLICY then India that gives them an edge
in export market.

 Taiwan, Mexico, Bangladesh, South Korea, Indonesia and

Pakistan are also emerging rivals.
 SWOT ANALYSIS
 STRENGTH
 Low cost labour force.
 Rich resources of Raw material.
 Growing domestic and international market.
 WEAKNESS
 Fragmented Industry
 Unskilled labour force.
 Technological Obsolescence
 Opportunity

 Indian companies need to focus on Product Development.

 The organized retailing in India will further fuel demand of

apparel in the country.

 Large, potential domestic and international market.

 Threat

 High competition mostly from China.

 Non-availability of technical resources.

 Recommendations
 Setting up Textile Industries oriented SEZs

 Starting up new courses like Textile Manufacturing and Textile

Technology at ITIs and Engineering Institutes

 Liberalized labour laws, tax and other benefits of a Special

Economic Zone need to be implemented

 Access to high quality and cost-effective manpower

 Excellent connectivity by road, rail air and ports

 Single-window clearance
 Conclusion
 Indian textile industry, which is one of the oldest sectors and
hold great significance for its economy.

 Indian textile industry its major marketplaces are Europe and

US.

 India to be the market leader needs to surpass China, which is

its biggest competitor.

 High investment in R&D to launch new products

 For higher productivity it is imperative that the workforce
should be skilled and educated.

 The Indian textile industry is presently worth $ 47 billion and

its continual expansion has led the government to lengthen the
Technology Up gradation Fund Scheme.

 The future prospects of the Indian domestic market are also

very promising, with strong increase in GDP.

 Above mentioned all the factors will help the country to

become a highly competitive player in global textile market.
THANK YOU