Premium Essay

Textile Industry Analysis

Submitted By
Words 1896
Pages 8
The Textile industry contributes 2% to India’s GDP .India is the largest producer of cotton and jute and second largest producer of silk and manmade fibre and filament in the world. Cotton majorly dominates the yarn and the fabric stage. Who produces them? The handloom and textile weavers. Any loom which is operated manually is called a handloom whereas textile is a flexible material composed of natural or synthetic fibres, formed by weaving, knitting, knotting etc. The textile industry employs the maximum number of people after agriculture. It directly employs upto 50 million and indirectly upto 60 million people (approximately). The Goods and Services Tax (GST) is the biggest tax reform in India
…show more content…
The majority of weavers are women (77.9% of the workforce). About 87% people work and live in rural areas and 13% in urban areas. Their living conditions are pitiable and 54 % weavers live in ' Kutchcha' houses, 31 % in semi-pucca houses and only 15 % live in pucca houses. About 9.7 % of weavers are having AAY cards (Antyodaya Anna Yojana), 36.9% have BPL (Below Poverty Line) cards, 34.5% have APL (Above Poverty Line) cards and only 18.9% are ration cards. Coming to their literacy levels, 29 % have no schooling at all while 12.7 % have below primary level qualification, 18.2 % have primary level education and 22.9 % have reached the middle schools.
The increasing prices and shrinking markets for the finished goods of the handloom sector has further increased distress faced by the weaver community pushing most of them into debt trap For example: fabric yarn that is made at a place, could be dyed at a second place, woven at a third, printing taking place at a fourth and so on. At every stage there would be a GST that would be attracted and despite all these stages being the start to finish for the same single product, the multiple GST that the stages attract, pile up to make the product much costlier than before the GST
…show more content…
They are not against GST but against the tax rate which is levied, has the potential to ruin this industry. There was a three-day strike by textile traders in West Bengal. The cloth markets in major Gujarat cities, including Surat, Ahmedabad, Bhavnagar and Rajkot, remained shut. In the strike called by the Erode Handloom Cloth Merchants Association, about 3,000 odd textile shops here remained closed. Cloth merchants observed state-wide bandh in Rajasthan. A string of shops on Cotton Street, Satyanarayan Park and the adjoining street in Burrabazar, one of east India’s largest wholesale hubs remained

Similar Documents

Free Essay

Performance of Textile Industry in Industrialisation: a Study with Reference to India

...PERFORMANCE OF TEXTILE INDUSTRY IN INDUSTRIALISATION: A STUDY WITH REFERENCE TO INDIA INTRODUCTION Prosperity of any nation is extremely difficult without industrial development – is a well established truth for all the economies – developing or developed. Economic development and industrialization have became so closely integrated with each other that progress of an economy is now accessed from the success it has achieved in transformation from agricultural set up into a industrial set up. Through industrialization a situation is created whereby many industries are set up rapidly and ultimately backward areas are converted into economically developed areas and backward economies into developed economies. Industrialization, infact is a composite term which involves a number of structural changes such as changes in the production techniques, factor intensities, industrial employment and output. Industrialization is not only a way to increase output or national income but is a means of introducing modern technology and changing ways of life and finally the structure of the economy because of its self-reinforcing quality. But the all above cannot be executed without a well planned industrial policy. The industrial polity provides direction to the pace of industrialization and industrial development. Hence, to industrialize the country, India too, framed industrial policy which was amended, modified and reoriented several times. The First Industrial Policy was framed in......

Words: 6332 - Pages: 26

Premium Essay

Aurora Textile Company

...CASE 21: AURORA TEXTILE COMPANY Q1. How has Aurora Textile performed over the past four years? Be prepared to provide financial ratios that clear present a clear picture of Aurora’s financial condition? A- From 1999 – 2002, Aurora Textiles Company’s financial performance was unappealing and disheartening. Like many of its competitors, Aurora had been struggling financially. The company had not responded quickly to the deteriorating business environment, and had suffered consecutive losses for the past four years. Figure 1: Net Earnings of Aurora Textile Company (1999-2002) The graph above shows the net earnings of the company from 1999-2002. As we see, throughout the years, the net earnings have declined and resulted in a loss, especially in 2001. This could be attributed to the business risks that arose from the intense competition that characterized the industry in which Aurora operates. Moreover in January 2005, the US textile industry experienced intense competition when the WTO lifted the ban on quotas, which worsened Aurora’s financial condition and its credit rating of BB. The main reason for the decline in net earnings was due to the textile industry facing difficult circumstances. Figure 2: Financial ratios (1999-2002) The above table shows the financial ratios of the company from 1999-2000. Measures of probability have worsened during these years as ROA and ROE have been declining. Net sales have been steadily declining which led to management’s...

Words: 1661 - Pages: 7

Premium Essay

Textile Rrl

...Vu, V. (2013) Promoting the Implementation of Corporate Social Responsibility (CSR) Standards to Ensure Sustainable Development of Textile Enterprises in Vietnam Implementing corporate social responsibility (CSR) is one of the requirements that enterprises need to observe to ensure green growth towards sustainable development. Corporate social responsibility (CSR) has been conventionally defined as a voluntary humane activity in solving social and charitable problems. Recently, however, there is a new school that advocates strong intervention by the state and society, including the need for legislation to strengthen the CSR of enterprises, instead of leaving it to their individual discretion. “Sustainable development (SD) is the development of using available natural resources and environmental conditions not only to meet the needs of human beings but also to ensure the necessary environmental and resource conditions for future generations so that they can live better" [WCED, 1987]. The sustainable development of a society is judged by certain criteria in all three aspects: the economy, society and environment and natural resources. These criteria are different in countries which have different levels of development. In general, however, in order to obtain sustainable development, they must balance all three objectives: the economy, society......

Words: 3571 - Pages: 15

Free Essay

Tommy Hilfiger


Words: 17393 - Pages: 70

Premium Essay

Textile Industry of Pakistan

...The aim of this report is to empirically analyze the relationship between interest rate, inflation, loan disbursed to textile sector, energy crises and yarn prices with textile sector growth in Pakistan during 2001 to 2011.Dependent variable is Textile sector growth Independent variables are Interest rate,, Inflation, Energy crisis, Price of cotton yarn and Loan disburses to textile sector. The aim of this report is to empirically analyze the relationship between interest rate, inflation, loan disbursed to textile sector, energy crises and yarn prices with textile sector growth in Pakistan during 2001 to 2011.Dependent variable is Textile sector growth Independent variables are Interest rate,, Inflation, Energy crisis, Price of cotton yarn and Loan disburses to textile sector. “Impact of Energy Crisis, Interest Rates and Inflation on Textile Sector of Pakistan” Term Report, Fall 2015 “Impact of Energy Crisis, Interest Rates and Inflation on Textile Sector of Pakistan” Term Report, Fall 2015 Submitted by: Zehra Hasan Zaidi, Sana Shamim,Hamza Nadeem, Abeer Salman Submitted by: Zehra Hasan Zaidi, Sana Shamim,Hamza Nadeem, Abeer Salman LETTER OF TRANSMITTAL 1st December 2015 The Course lecturer Analysis of Pakistani Industries Institute of Business Management Korangi Creek, Karachi. Dear Madam, SUBJECT: TERM REPORT We feel immense pleasure in presenting to your good self, the term report as part of our course requirement. We found this report to be truly......

Words: 2546 - Pages: 11

Free Essay

Industry Analysis

...Executive Summary III. Industry Analysis A. Environmental Analysis The competition between businesses within the textile and clothing industry has always been steep. The change in lifestyle combined with the fast changing trends has left entrepreneurs with the challenge of keeping pace with the demand of the consumers. With KRaze-Zip’s fresh, unique, and high in quality yet economical products, it is in the best position to answer such growing needs. The Clothing Accessories Industry Today Since KRaze-Zip will be selling clothing accessories, it will be penetrating the clothing and textile industry. The clothing and textile industry has been a declining industry in the Philippines since 2005. This decline is due to the MFA (Multi-fiber Agreement) phase out and lowered of trade quotas which greatly affected the Philippines due to its inability to compete with countries with lower wage costs. Aside from this, the global crisis in 2008 has also led to the decline of the industry not only in the Philippines, but also worldwide. However, the textile and clothing industry remains to be Philippines’ second largest industry based on the number of establishments according to the survey released by the National Statistics (August 29, 2012). Out of 4, 643 manufacturing firms employing 20, 7.5% or a total number of 347 establishments came from the wearing apparel industry. Meanwhile, the industry generated 85, 805 jobs......

Words: 1730 - Pages: 7

Premium Essay

Report on Giant Textile

...Case Report On : Chittagong Giant Textile Submitted to: Professor Md. Sahidur Rahman Dept. of Management Studies Center for Business Studies University of Chittagong Submitted by: Halima Begum(1302105) Submission Date: 16 May,2015 Chapter Index Serial No Contents Page No 1. Introduction 03 2. Overview of The Company 04 3. Question Analysis: 05 3a. SWOT of the Company 05  Strength 05  Weakness 05  Opportunity 06  Threats 06 3b. Business Level Strategy 07 3c. Recommendation 08 4. Conclusion 09 1.Introduction The Bangladesh Textile Industry has an overwhelming presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textile industry also plays a pivotal role through its contribution to industrial output, employment generation, and the export earnings of the country. In Bangladesh’s current scenario, textile industry is facing more challenges (cotton and yarn price fluctuation, effluent treatment and discharge, customer expectation on high quality and disposal of solid waste) from all the areas of business. For facing these challenges, organization has to plan their effective long and short range strategy. Before starting the strategic planning, the organization has to identify their internal capabilities and their competitive environment. SWOT analysis is one of the self evaluating tools to measure the company internal......

Words: 1280 - Pages: 6

Free Essay

Textile Insdutries Guatemala and India

...Introduction The following investigative document presents an overview of the textile industries in two emerging countries: Guatemala and India. The document analyses, compares and contrast the differences in the institutional structures of both countries and offers specific details and analysis of the textile industries for local and international businesses. Guatemala Republic of Guatemala is located in Central America bordered by Mexico to the North, the Pacific Ocean to the southwest, and Belize to the North East Honduras and El Salvador to the southeast. The country is mountainous with small desert and sand dune patches, having many hills filled with people, except for the south coastal area and the vast northern lowlands of Petén department. Two mountain chains enter Guatemala from west to east, dividing the country into three major regions: the highlands, where the mountains are located; the Pacific coast, south of the mountains; and the Petén region, north of the mountains. All major cities are located in the highlands and Pacific coast regions; by comparison, Petén is sparsely populated. These three regions vary in climate, elevation, and landscape, providing dramatic contrasts between hot and humid tropical lowlands and colder and drier highland peaks. Volcán Tajumulco, at 4,220 meters, is the highest point in the Central American states. Demographics Guatemala is a country of youth; 70% of its population is less than thirty years old. The......

Words: 4120 - Pages: 17

Premium Essay


...|Internship Report on Nishat Textile Mills | |[pic][pic] | |Internship report | |On | |  | |  | |[pic] | |  ...

Words: 10243 - Pages: 41

Free Essay


...Section B: Welspun India Industry Analysis – Textile Industry on Global Scale The global apparel and fashion trade is expected to grow to USD1 trillion by 2020. However with growth slowing down in developed markets, the dynamics of the global fashion market are expected to change dramatically. Emerging economies will fuel most of the growth in the fashion market. Brazil, Russian, India & China (BRIC) along with few other South-East Asian countries are seen as the major growth drivers. In addition to this, global apparel markets in the recent past have shown a paradigm shift, moving towards increased product differentiation, and catering to a diverse, aware, and demanding customer base. Retailers have thus gravitated toward demographic shifts, societal influences, economic influence, and environmental concerns. With growth in developed economics cooling, retailers are facing pressure due to restricted consumer spending. Under such conditions the global apparel value chain has shown a distinct shift both at the front- and supply-end. Recent Global Trends in Textile Sector * Increase in textiles and clothing global trade from US$ 355 billion in 2000 to US$ 602 billion in 2010 * Expected to reach US$ 1 trillion by 2020, CAGR of 5% pa. * China, India, Pakistan, Bangladesh, Thailand, Indonesia are leading suppliers and further expanding their capacities. * Established markets (North America, Western Europe) continue to show traction * Emerging......

Words: 2189 - Pages: 9

Premium Essay


...Garment Factory Compliance • Home • About • Top of Form [pic][pic] Bottom of Form [pic]Indian Textile Industry and Garment Exports November 28, 2012 Disha Leave a comment The Indian textile industry is one of the largest industries in the world, with a huge raw material and textile manufacturing base. The industry occupies a unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products. This large and ancient industry has carved out a special niche for itself as a facilitator of the county’s economic growth and participative development. Textile industry in India is a highly versatile sector, with smaller firms providing flexibility needed for smaller orders; the larger firms have the capacity to service the world’s biggest buyers. The Government of India has also undertaken several favourable policy initiatives, which have resulted in the growth of the sector. “Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to the country’s gross domestic product (GDP) and 16.63 per cent to export earnings,” as per Ministry of Commerce and Trade, India. Major destination for Indian garment exports The USA is the number one destination for the exports of Indian apparels. During 2011, the garment imports to the USA from world were around US$ 81.51 billion. India exports garments of worth US$ 3.53 billion to the USA, which accounts for 4.33 per cent share in the USA’s......

Words: 18280 - Pages: 74

Premium Essay

Term Paper

...sector is a multi-billion-dollar manufacturing and export industry in the country. The overall impact of the readymade garment exports is certainly one of the most significant social and economic developments in contemporary Bangladesh.  With over one and a half million women workers employed in semi-skilled and skilled jobs producing clothing for exports, the development of the apparel export industry has had far-reaching implications for the society and economy of Bangladesh. Literature Review: Several authors have analyzed aspects of the garment industry in Bangladesh. Of the various aspects of the industry, the problems and the working conditions of female workers have received the greatest attention.  There are several studies including the Bangladesh Institute of Development Studies (BIDS) study by Salma Chowdhury and Protima Mazumdar (1991) and the Bangladesh Unnayan Parisad (1990) study on this topic.  Both of these studies use accepted survey and research methodology to analyze a wealth of data on the social and economic background, problems and prospects of female workers in the RMG sector.  Professor Muzaffar Ahmad looks at the industrial organization of the sector and discusses robustness and long-term viability of apparel manufacturing in Bangladesh. Wiigton (2000) provides a good overview of this industry, especially the developments in the early years.  One of the few studies on the Bangladesh apparel industry to be published in a reputed journal in the U.S.......

Words: 5528 - Pages: 23

Free Essay


...WORKING OF THE TEXTILE MANUFACTURING UNIT” BY KUNJAN SHAH SHATAKSHI GOYAL HARSH SHAH UNDER THE GUIDANCE OF SMIT SHAH DIRECTOR SUPERNOVA POLYFABS PVT LTD UNIT OF ETCO SPINNERS PVT LTD MUMBAI ACKNOWLEDGEMENT We would like to express my profound gratitude to all those who have been instrumental in the preparation of this project report. We wish to place on records, our deep gratitude to our project guide Dr. Rajesh Jain, a highly esteemed and distinguished guide, for help and advice. INDIAN TEXTILE INDUSTRY The Textile industry in India traditionally, after agriculture, the only industry that has generated huge employment for both skilled and unskilled labor in textiles. The textile industry continues to be the second largest employment generating sector in India. It offers direct employment to over 35 million in the country. India is the second producer but India will lead in all. According to the Ministry of Textiles, the sector contributes about 14% to industrial production, 4% to the country's gross domestic product (GDP) and 17% to the country's export earnings. The share of textiles in total......

Words: 1864 - Pages: 8

Free Essay

Current State of Textile Industries in Bangladesh

...Current State of Textile Industries in Bangladesh Introduction: The textile and clothing sector is the largest manufacturing activity in Bangladesh. It provides direct employment to about than 5 million people, which accounts for 45 per cent of all industrial employment in the country. The sector contributes 10 per cent of the country’s GDP, 40 per cent of industrial value addition, and 78 per cent of export earnings. Major readymade garments exported by Bangladesh are knitted and woven shirts and blouses, trousers, skirts, shorts, jackets, sweaters and sportswear, and other fashion apparel. In the Table below provides a profile of Bangladesh’s textile and clothing sector. The sector can broadly be divided into primary textile sector (PTS) and export-oriented readymade garment (RMG) making sector. The PTS comprises spinning, weaving, and specialized textile units, traditional handloom sector and knitting and dyeing subsectors. Currently, there are now 350 spinning mills, 400 weaving firms, 310 dyeing and finishing units, and 4,500 garment factories. |Sub-sector |Number of units |Installed machine capacity |Production capacity |Employment | | | | | | | |Textile spinning |350 7.5 million |spindles ......

Words: 6682 - Pages: 27

Free Essay

Hoisery and Appearal

...Term paper submitted in partial fulfillment of the requirements of the Undergraduate Degree in Bachelor of Business Administration (Honours) J. D. Birla Institute at the Jadavpur University at Kolkata DECLARATION I declare the following: The word count of the dissertation is 11,200 words (approx) The material contained in this dissertation is the end result of my own work. Due acknowledgement has been given in the bibliography and references to all sources be they printed, electronic or personal. I am aware that my dissertation may be submitted to a plagiarism detection service where it will be stored in a database and compared against work submitted from this institute or from any other institutions. In the event that there is a high degree of similarity in content detected, further investigations may lead to disciplinary actions including the cancellation of my degree according to Jadavpur University rules and regulations. I declare that ethical issues have been considered, evaluated and appropriately addressed in this research. I agree to an entire electronic copy or sections of the dissertation to being placed on the e-learning portal, if deemed appropriate, to allow future students the opportunity to see examples of past dissertations and be able to print and download copies if they so desire. Signed: Date: Name: Sweta Prahaladka Roll no - 119 Supervisor: Mr. Shantanu P.Chakraborty ACKNOWLEDGMENT A......

Words: 11438 - Pages: 46