Garments & Textile Industry

Topics: Cotton, Textile, Value chain Pages: 53 (15787 words) Published: March 15, 2013
Indian Textile and 
Garment Industry‐ 
An Overview 


Dr. T. S Devaraja

Indian Textile and Garment Industry‐ 
An Overview* 
By: Dr. T. S Devaraja  
Associate Professor 
Department of Commerce 
Post Graduate Centre 
University of Mysore 
Hassan, India 

The work described in this working paper was substantially supported by a grant from the Indian Council of Social Science Research, Ministry of Human Resource Development, Government of India, New Delhi.

India is the world’s second largest producer of textiles and garments after China. It is the world’s third largest producer of cotton-after China and the USA-and the second largest cotton consumer after China. The Indian textile industry is as diverse and complex as country itself and it combines with equal equanimity this immense diversity into a cohesive whole. The fundamental strength of this industry flows from its strong production base of wide range of fibres / yarns from natural fibers like cotton, jute, silk and wool to synthetic /man-made fibres like polyester, viscose, nylon and acrylic. The growth pattern of the Indian textile industry in the last decade has been considerably more than the previous decades, primarily on account of liberalization of trade and economic policies initiated by the Government in the 1990s. In producer-driven value chains, large, usually transnational, manufacturers play the central roles in coordinating production networks. This is typical of capital- and technology-intensive industries such as automobiles, aircraft, computers, semiconductors and heavy machinery. Buyer-driven value chains are those in which large retailers, marketers and branded manufacturers play the pivotal roles in setting up decentralized production networks in a variety of exporting countries, typically located in developing countries. This pattern of trade-led industrialization has become common in labour-intensive, consumer-goods industries such as garments, footwear, toys, handicrafts and consumer electronics. Large manufacturers control the producer-driven value chains at the point of production, while marketers and merchandisers exercise the main leverage in buyer-driven value chains at the design and retail stages. Apparel is an ideal industry for examining the dynamics of buyer-driven value chains. The relative ease of setting up clothing companies, coupled
with the prevalence of developed-country protectionism in this sector, has led to an unparalleled diversity of garment exporters in the third world. Apparel is an ideal industry for examining the dynamics of buyer-driven value chains. Key words: liberalization, Textile and Garment industry, labour-intensive, Buyer-driven value chains, producer-driven value chains, protectionism, and capital and technologyintensive industries

In global capitalism, economic activity is international in scope and global in organization. “Internationalization” refers to the geographic spread of economic activities across national boundaries. As such, it is not a new phenomenon. It has been a prominent feature of the world economy since at least the seventeenth century when colonial powers began to carve up the world in search of raw materials and new markets. “Globalization” is more recent, implying functional integration between internationally dispersed activities.

Industrial and commercial firms have both promoted globalization, establishing two types of international economic networks. One is “producer driven” and the other “buyerdriven”. In producer-driven value chains, large, usually transnational, manufacturers play the central roles in coordinating production networks (including their backward and forward linkages). This is typical of capital- and technology-intensive industries such as automobiles, aircraft, computers, semiconductors and heavy machinery. Buyer-driven value chains are...

References: 1. Aditya Marwaha (2008). Impact of China on Indian Garment Industry. A
dissertation presented in part consideration for the degree of MA Marketing, The
2. Afuah, A. and Tucci, C (2003). Internet business models and strategies: text and
3. Apparel Export Promotion Council (2009). Export Statistics for Garments and
4. Apparel Fortnightly Report (2002). Review of Export Performance. Apparel
fortnightly, April, pp: 63-64.
5. Apparel Online Report (2002). India Needs To Be Cautious But Not Worried.
6. Apparel Online Team Report (2002). Innovation for Garments Productivity,
Apparel online, November, pp: 22-23.
7. Apparel View Report (2003). Are We Using the Right Technology For Apparel
8. Balls, John D (2000). e-Business and ERP: Transforming the Enterprise. John
Wiley and Sons, Inc., New York, pp: 13.
9. Beaman, B.M (1998). Supply chain design and Analysis: Models and Methods.
10. Breitman and Lucas (1987). Supplier perceptions of quick response systems.
11. Calvin and Joseph (2007). Occupation Related Accidents in Selected Garment
Industries in Bangalore City
12. Chan, F (2001). For SMEs, Cost is all that Matters. Asia Computer Weekly,
October, pp: 8-14.
13. Cohen and Lee (1989). Development of supplier selection model—a case study
in the advanced technology industry
Engineers, 218, 1807-1824.
14. Chatterjee, S. and R. Mohan (1993). India’s Garment Exports’, in Economic
and Political Weekly, 28/35, pp: M95-119.
15. Chopra S. and Meindl P ( 2001). SCM, Prentice Hall, New Jersey.
16. Chopra, Sunil and Peter Meindl (2003). What will drive the Enterprise software
17. Christopher, S. Tang (2006). Perspectives in supply chain risk management.
18. Christopher, M. and Lee, H (2004). Mitigating supply chain risk through
improved confidence
19. Christopher. M (1998). Logistics and Supply Chain Management. 2nd edition,
London: Financial Times Pitman Publishing.
20. Clarke, M. P (1998). Virtual logistics: an introduction and overview of the
21. Claire Shaeffer (2009). Sewing for the Apparel Industry. Prentice Hall, New
22. Cooper, M.C. and Pagh, J. D (1999). SCM: Implementation Issues and
Research Opportunities
23. Copacino W (2000). The e-synchronized supply chain. Logistic management
distribution, report, Vol.39, pp: 38.
24. Croom, S.P., Romano and M. Giannakis (2000). Supply Chain Management:
An Analytical Framework for Critical Literature Review
25. David Anderson and hau Lee (2001). New Supply Chain Business Models –
The Opportunities and Challenges
26. David Taylor and Alyse Terhune (2000). Collaborative Communities: The Next
27. Deshpande P.P (2009). Garment - Export Industry of India. APH Publishing
Corporation, New Delhi.
28. Donald Bowersox, David Closs, Theodore Stank, and Scott Keiler (2000).
29. Donald R.Coper (2006). Business research methods. Florida atlantic
University,Tata Mc.Graw-Hill publishing company limited,Newdelhi,PP:341.
30. Ean Korea (1998). Guidebook for POS system adoption in apparel industry.
31. Ethel C. Brooks (2007). Unraveling the Garment Industry: Transnational
Organizing and Women 's Work
33. Fred Kuglin and Barabra Rosenbaum (2001). The Supply Chain Network at
Internet Speed
34. Gary Gereffi (2003). The Global Apparel Value Chain: What Prospects for
Upgrading by Developing Countries
35. Gilbert and Alorie (2001). Collaborative Business. Information Week, May, pp:
36. Harland, C., Brenchley, R. and Walker, H (2003). Risk in supply networks.
37. Hau Lee and Seungjin Whang (1999). Supply Chain Integration in the Age of eBusiness. Supply Chain Management Global Supplement, pp: 16-19.
38. Hau Lee, V. Padmanabhan, and Seungjin Whang (1997). The Bullwhip Effect
in Supply Chains
39. Hoque and Faisal (2000). e-enterprise: business models, Architecture, and
40. Hugos, M (2002). Essentials of supply chain management. New York, John
41. John Mentzer, James Foggin and Susan Golicic (2000). Collaboration: The
Enablers, Impediments, and Benefits
42. Lambert, D. M., Cooper, M. C., and Pagh, J. D (1998). SCM: Implementation
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • textile industry Essay
  • Hitory of Textile Industry in Bangladesh Essay
  • Essay on Textile and Garments in the Philippines
  • Textile Industry in India Essay
  • Report on Textile Industry of Pakistan Essay
  • Essay on Introduction to Textile Industry in India
  • Indian Textile Industry Essay
  • Labor Welfare Activities in Textile Industry Essay

Become a StudyMode Member

Sign Up - It's Free
Desajustados (Fúsi) 2015 | 16-08-2018, 10:59 | Taiyo no Kisetsu