Analysis Of Textile Industry

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TEXTILE INDUSTRY IN INDIA
In India, textile industry is more of labor intensive industry. It is because it provides livelihood to unskilled laborers where they play an important role in the development of the economy. Textile industry also has an impact to the society as a whole as it comes under the basic necessities of human beings. Due to changing social and economic factors, there has been an increase in demand in this industry.
After removal of trade tariffs and non tariff barriers in 2015, countries like Japan, China, Hong Kong, India have emerged successfully in textile industry. In Indian textile industry, 14% is contributed to industrial production, 16.6% to export earnings and 4% is contributed to the Indian gross domestic product …show more content…

It also helps to determine the decline or growth of a particular market.
POLITICAL ASPECT:
For an industry to gain trust and goodwill, it is necessary for them to consider legal and political aspect as a part of the strategies. The industry should follow the policies and set rules and regulations of the government so that the industry is considered and recognized as an authorized business company. If rules and polices are being followed, it shows that the industry values the policies set by the government as per the business operations. In this aspect, it involves the following:
 Tax policy
Employment laws
 Environmental …show more content…

CONCLUSION:
From political aspect, government should initiate to apply sustainable policies for the beneficial of the industry. Some of the initiatives that the government has taken are releasing of a subsidy of $533.87 millions for textile industry under the technology Up-gradation Fund Scheme (TUFs). Government has also extended 10% capital subsidy and 5% interest subsidy on installation of machineries under TUFs.
When there is an increased of inflation rate, it makes the cost of production very high which will proportionately decrease the profits margin of the industry. Changing of trends and lifestyle of people will also affect the demand of the products. Technological development has led to an increase of technological advancements in textile industry.
Textile industry is facing competition from foreign industry including our neighboring countries like Sri Lanka, Pakistan and Bangladesh where they took advantage of unilateral tariff preference schemes.
Research and studies are conducted by the government to improve textile export and competitiveness of the Indian textile industry. It was also estimated the domestic household market size of textiles.
FIVE FORCES FRAMEWORK PROPOSED BY MICHEAL

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