Export Competitiveness of Indian textile industry

1. 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

2. 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.

3. 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.

4. 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

6. 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.

7.  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.

8. Major Production Center's
 Amritsar
 Phagwara
 Ludhiana
 Bhiwani
 Delhi
 Faridabad
 Modinagar
 Kanpur
 Kolkata
 Ahmadabad
 Surat
 Mumbai
 Bengaluru
 Chennai
 Coimbatore
 Madurai
 Raurkela
 Tirrupur

9. 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)

10. 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)

11.  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.

12.  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

13.  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.

14.  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

15. Export Growth
0
0.5
1
1.5
2
2.5
Exported RATIO in
2004
Exported RATIO in
2005
Exported RATIO in
2006
Exported RATIO in
2007
Exported RATIO in
2008
Exported RATIO in
2009
Exported RATIO in
2010
Exported RATIO in
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.

16. 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.

17.  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.

18. 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

19.  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.

20. 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

21. 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

22.  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.

23. THANK YOU