Indian Textile Industry Analysis
Analysis of Indian Textiles and Apparels Industry: A Focus on Market Structure and Competitiveness
Abstract: The Indian textile industry is one of the oldest and most significant industries in the country. It accounts for around 4 per cent of the gross domestic product (GDP), 14 per cent of industrial production and over 13 per cent of the country's total export earnings. In fact, it is the largest foreign exchange earning sector in the country. Moreover, it provides employment to over 35 million people. The Indian textile industry is estimated to be around US$ 52 billion and is likely to reach US$ 115 billion by 2012. The domestic market is likely to increase from US$ 34.6 billion to US$ 60 billion by 2012. It is expected that India's share of exports to the world would also increase from the current 4 per cent to around 7 per cent during this period. India's textile exports have shot up from US$ 19.14 billion in 2006-07 to US$ 22.13 billion in 2007-08, registering a growth of over 15 per cent. This article tries to investigate the underlying market structure that has developed over the years together with the strengths, weakness, opportunities and threats the industry is currently facing. In the course of the analysis the data shows that the industry operates in a monopolistic setup and all the assumptions for a monopolistic economy holds good.
Introduction: The economic history of India cannot deny the contribution of textile industry in effectively changing the social scenario. Its presence in the Indian as well as the world economy is a commendable one. The manifestation of its significance in playing a pivotal role is discerned with its 14% contribution to the total industrial production, 4% to GDP and 16.63% to export earnings as estimated by the Ministry of Textiles, India. The textile industry ranks second in providing direct employment to over thirty five million people after agriculture in our country. It is estimated that the textile industry is
Abstract: The Indian textile industry is one of the oldest and most significant industries in the country. It accounts for around 4 per cent of the gross domestic product (GDP), 14 per cent of industrial production and over 13 per cent of the country's total export earnings. In fact, it is the largest foreign exchange earning sector in the country. Moreover, it provides employment to over 35 million people. The Indian textile industry is estimated to be around US$ 52 billion and is likely to reach US$ 115 billion by 2012. The domestic market is likely to increase from US$ 34.6 billion to US$ 60 billion by 2012. It is expected that India's share of exports to the world would also increase from the current 4 per cent to around 7 per cent during this period. India's textile exports have shot up from US$ 19.14 billion in 2006-07 to US$ 22.13 billion in 2007-08, registering a growth of over 15 per cent. This article tries to investigate the underlying market structure that has developed over the years together with the strengths, weakness, opportunities and threats the industry is currently facing. In the course of the analysis the data shows that the industry operates in a monopolistic setup and all the assumptions for a monopolistic economy holds good.
Introduction: The economic history of India cannot deny the contribution of textile industry in effectively changing the social scenario. Its presence in the Indian as well as the world economy is a commendable one. The manifestation of its significance in playing a pivotal role is discerned with its 14% contribution to the total industrial production, 4% to GDP and 16.63% to export earnings as estimated by the Ministry of Textiles, India. The textile industry ranks second in providing direct employment to over thirty five million people after agriculture in our country. It is estimated that the textile industry is