GARMENT INDUSTRY INDIA IN THE WORLD

SCENARIO

Presented By-Poulomi Sen

TCFS 2nd YearRoll No: 26

Indian Garment Industry- A budding leader of Indian Economy

* India's Garment Industry is a well-organized enterprise and is

among the best in the world. It constitutes of designers,

manufacturers, exporters, suppliers, stockiest, and wholesalers.

Indian Garment Industry has carved out a niche in the global

markets and earned a reputation for its durability, quality and

beauty.

* A huge industry growing at the rate of 30% per annum.

* Distributed equally across all major cities of India.

* It has an output of about 7% of total industrial production.

* Market capitalization is at a rate of 20% per annum.

An Overview on the Industry- An Introduction

* The Garment Industry is of major importance to the Indian

economy as it contributes substantially to India's export earning.

* The annual plan for 2007-08 formulated by Indian government to

promote the textile sector, includes schemes for attracting

foreign direct investments, brand promotion through public-

private partnership (PPP) for global acceptance of Indian brands,

trade centers for facilitating business and image building, fashion

hubs as a stable marketplace for Indian fashion, common

compliance code for creating apparel standards for the benefit of

buyers, and training centers for developing human resources.

* The garment industry accounts for 14% of industrial production, which

is 4% of GDP and employs 45 million people and accounts for nearly 11%

share of the country’s total exports basket.

* India’s exports of Textiles and Clothing together clubbed as garments is

pegged at USD 64.41 billion by the end of March, 2017.

* During the year 2012-13, Garments accounted for almost 39% of the

total textile exports.

* Exports of garment products from India have increased steadily

over the last few years, particularly after 2004 when textiles exports

quota was discontinued.* The total textile exports during 2012-13 was valued at Rs 137619.44

crore as against Rs 129829.30 crore during the corresponding period of

financial year 2011-12, registering an increase of 6.00 percent in rupee

terms.

INDIAN GARMENT INDUSTRY AT A GLANCE IN 2012 - 2013

1. Today the textile and garments industry plays a significant role in

the economy.

2. It is one of the largest and the most important sectors of Indian

economy in terms of output, foreign exchange earnings and

employment.

3. The sector employs 35 million persons. Of this, textile segment

alone accounts for 29 million and the clothing industry accounts for

the remaining 6 million people.

4. In fact it is the second largest employer in the economy after

agriculture.

5. It contributes nearly 20 per cent to the country’s total export

earnings.

TODAY’S SENARIO

* Indian garment industry is amongst the top players in terms of

export (Currently in the 2nd Position)

* Main competitors are Bangladesh & China.

* Bulk of India’s exports go to the US, Canada and the European

Union.

* Indian exports have become competitive, thanks partly to the

government’s restrictions on exports of cotton and cotton yarn

which lowered the raw material prices.

* Texport Syndicate India Limited CEO & Director Avinash Misar

says that “If India can grab 10 per cent of China’s business, Indian

apparel exports will double to $20 billion in coming years,”

Indian Garment Industry- A focus on export issues

STRENGHTS

1. Advantages of Mass availability of Raw Materials

2. Advantage of cheap labour cost.

3. Rich cultural heritage provides a mass inspiration.

4. High capability of India in product development.

SWOT ANALYSIS OF Indian Garment Industry

Weakness

1. Unavailability of State of the art Technology & infrastructure.

2. Improper policies of Government leading to backlogs in mass

export.

Opportunities

1. Climbing wage rates of ASEAN & ASIAN countries.

2. Since buyers are looking at alternative markets for sourcing,India has greater chance because our country is democraticand economically and socially stable.

3. Removal of Quota Constraints & arrival of MFA (Multi- FiberArrangement ) gave rise to innumerable opportunities posing agreat advantage to India.

THREATS

1. Immense price pressure.

2. Different bodies like Cotton Corporation, Indian Textiles andAEPC should sit together and formulate the right strategyrather than each pulling in different directions. Thegovernment should formulate a structured approach asgarments is a complex supply-chain industry.

3. Low availability of skilled manpower.

4. Garments exports do not have large profit margins, investmentsfrom private entrepreneurs are low and this is why thisindustry has not grown much in India compared to manycountries.

Marketing of the Garment Industry

1. Opening of the globalised markets have increased opportunities for

many ASEAN & ASIAN Countries.

2. Proper policies of the Government will aid to enhanced market for

India in the globalised market.

3. Wide range of fabrics, huge labour investment are baring essentials

for creating a niche in the world market.

4. Extensive promotional policies, wide use of marketing tools are very

essential as Bangladesh, Vietnam etc are posing very important

threats for the Indian market.

CONCLUSION

India is in a very good position in terms of Garment

Industry (Marketing , Export etc). The Government should

allow various open rules so that extensive business could

be carried out. Our country should not bask in the glory

of being a budding leader but should strive to be the BEST

as we have an ocean full of resources & opportunities.