SWOT Analysis of Textile and Garment Industry in India

SWOT Analysis of Textile and Garment Industry in India

Shubham Anil Jain
Aditya Birla Fashion and Retail Limited
Bangalore, India
Email: shubhamajain125@gmail.com


A study of your fashion brand’s strengths, weaknesses, opportunities, and threats, or SWOT, will show you how it compares to the competition. You can use the analysis tool to determine your brand’s position in the bigger fashion market. Your entire company and its position in various local marketplaces should be included in a fair analysis of your design house. As per as the, design and production are concerned they are on one side of the fashion industry’s whereas creative and sales division, are on the other. As we know the fashion industry is geographically segregated into three continents: the United States, Europe, and Asia. Utilize SWOT analysis to evaluate your brand’s performance across all four functions and its geographic presence. The Indian textile and garment industry is a major contributor to the country’s economy. SWOT analysis highlights the key strengths, weaknesses, opportunities, and threats of the Indian textile and garment industry.

SWOT Analysis of Textile and Garment

SWOT Analysis of Textile and Garment Industry:

1. Strengths:

a) Basic raw materials:
The strong point of India is that, it is very self-sufficient in raw materials, especially when it comes to natural fibers. It is seen that, the third-largest cotton crop in the world is grown in India. The speciality of Indian textile industry is that, all types of fibres are produced and handled here.

b) Labour:
The Indian apparel and textile industry has long been supported by low-cost labour and strong entrepreneurial abilities.

c) Adaptability:
The garment industry’s predominately small-scale manufacturing gives for more flexibility in handling more specific and smaller orders.

The textile sector in India offers a number of advantages. The first is the accessibility of inexpensive labour. According to facts, the country has highly skilled labour available for very little money, which lowers the cost of production. India has a lot of raw materials available, which helps to minimise costs and shorten lead times. Resources including jute, cotton, silk, and cotton yarn, as well as man-made fibres, are particularly abundant in India. Another highlight area of India is its large diversity of cotton fibres that stands India apart from other nations. They go on to say that the textile as well as garment sector in India is very self-reliant one. From the acquisition of raw materials through the creation of completed items, it has a whole value chain.

2. Weaknesses:

a) Increased reliance on cotton:
Due to over-concentration on cotton, the majority of the global market is ignored, synthetic products are expensive in India, and the fabric needed for items like swimwear, skywear, and industrial gear is comparatively scarce.

b) The Spinning Sector:
The spinning industry has to adopt new technologies because it is not modernized.

c) The Weaving Sector:
India has a comparatively small number of looms without shuttles.

d) Processing of Fabrics:
The weakest link in the Indian textile value chain is processing, which has a negative impact on the country’s capacity to compete in export markets.

e) Deficient Infrastructure:
India’s export competitiveness is being harmed along the entire textile supply chain by high electricity prices and lengthy export lead times.

f) Low Labour Productivity:
In India, productivity levels for producing different types of clothing are much lower.

3. Opportunities:

a) Increased Industry:
By 2010, the global textile market would increase at a rate of 3-4%, reaching $200-210 billion.

b) Market entry via bilateral negotiations:
Due to bilateral agreements between participating nations, trade between regional trade blocs is expanding.

c) Information technology integration:
In the production of clothing, “Supply Chain Management” and “Information Technology” are essential. The availability of EDI (Electronic Data Interchange) facilitates quick, simple, transparent communication and minimizes duplication.

d) The Possibility of High-Value Items:
India has the chance to raise its UVRs (Unit Value Realization) through rising up the value chain, creating value-added goods, and developing a steadily growing number of technologically advanced goods.

Technical textiles, product development and diversification, FDI, and brand awareness are just a few of the prospects available to the Indian textile sector. The Indian textile sector can maintain its current expansion and prosper in the near future thanks to technical fabrics. Additionally, it will aid in the development of the sector (Rakshit, Hira, and Gangopadhyay, 2007). India uses relatively little technological textiles. In the upcoming years, both woven and nonwoven technology textiles will prosper in India.

4. Threats:

a) Decline in the fashion cycle:
The number of seasons per year has increased, shortening the cycle of fashion as a result.

b) Formation of Trading Blocks:
The world trade environment has changed as a result of trading blocs like NAFTA, SAPTA, etc. If there were bilateral agreements, Indian exports would suffer significantly.

c) Phasing out of Quotas:
India would have to expose its closed local market to global competitors, which will hurt the domestic market.

It is clearly found that, China shows the greatest and big challenge to the Indian textile industry on and around the international market. India is also threatened because of the low-cost producers such as Pakistan and Bangladesh, which can decrease India’s demand for exports in the future. The another point of threat is India’s geographic distance from the US, Europe, and Japan’s three largest markets, as opposed to rivals Mexico, China, etc., which are geographically closer. Long lead times and high transportation costs are the results of great distance.

The global textile market is currently worth $400 billion. According to data and the facts it is forecasted that, the output of textiles will rise by 25% globally, with Asia playing a major role. As per as the Indian textile and apparel sector is considered as one of the largest in the world, plays a vital role in the Indian economy, and is very old. The scale, scope, depth, and competitiveness of the Indian textile and apparel sector is incomparable by any other country, exception of China. India now has the chance to work on its inherent strengths and become the top sourcing and investment place after quotas were removed at the end of 2004.


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