The Indian textile industry has been the pioneer of India’s transformation
from an agrarian economy to an industrial economy. The Indian textile
industry contributes 14% of industrial production, 4% of GDP, 35% of export
earnings, 35 million direct employment generation, and around 65 million
additional employment generation, it can hardly be over emphasized that the
growth and development of textile industry has an imported bearing on the
growth of the Indian economy.
The Indian textile industry has advantages like strong cotton base, expanding
the man-made fiber industry and a large pool of technical and managerial
manpower. Proper utilization of these could have helped the industry in attaining
a sound global position. However, due to protection hitherto provided by the
government from import penetration through high tariff barriers and quota regime
in international markets, the industry became complacent.
As a result, the Indian textile industry is plagued with problems of long
manufacturing and delivery time; poor supply chain coordination, poor material and technology, and people who have no knowledge about the market. Marketers
too seem to be complacent and any conscious effort in brand building and fruitful
promotional activities seem to be missing. A huge market and opportunities, as
a result, remain untapped. Further, the industry is undergoing a complete
metamorphosis as a result of setting up of WTO and gradual phasing out of
quantitative restrictions and dismantling of tariff barriers aimed at complete
integration of textile trade after 2004. |