Analysing the Macroenvironment of Textile Industry

Analysing the Macroenvironment of Textile Industry

ANALYSING THE MACROENVIRONMENT OF TEXTILE INDUSTRY

INTRODUCTION

The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture.

Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. It has a unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing; it is a major contribution to the country's economy.

Indian textile industry has the highest loomage including handlooms in the world. It contributes about 61% to the world loomage. It also contributes about 12% to the world production of textile fibres and yarns including jute. It is the largest producer of jute, second largest producer of silk, third largest producer of cotton and cellulosic fibre/yarn and fifth largest producer of synthetic fibres/yarns.

THE DEMOGRAPHIC ENVIRONMENT

Demographic trends in India are changing with increase in disposable income levels, consumer awareness and tendency to spend. According to the National Council of Applied Economic Research (NCAER) data, the Consuming Class, with an annual income of US$ 980 or above, is growing and is expected to constitute over 80% of the population by 2009-10. There is a change in the consumer mindset that has led to a trend of increased consumption on personal care and lifestyle products as well as branded products. These trends offer great growth opportunities for companies across various sectors, including textiles.

Supporting the increasing demand for consumption is the revolution taking place in India's retail sector. Organized retail is playing a key role in structuring the Indian domestic market, reinforced by the rapid rise of supermarkets,