However, points out the Study that the textile sector fared well in the first half of 2005-06 as the weighted production index went up by 10.3 percent, compared to a 6.5 percent rise in the corresponding period of the previous year.
Investments in the Indian textile industry (excluding synthetic textiles) saw buoyant growth in the current fiscal till October 2005, scaled up by a hefty 109.3 percent to Rs 14,186 crore, compared to Rs 6,779 crore as of October 2004.
It further says that India has inherent strengths which can be capitalized on strong raw material base of cotton, man-made fibers, jute, silk, large production capacity vast pool of skilled manpower, entrepreneurship, flexibility in production process, and long experience with US and EU.
At the same time, there are weaknesses relating to fragmented industry, constraint of processing, quality of cotton, concerns over power cost, labour reforms and other infrastructure constraints and bottlenecks.
Referring to the strengths of Indian textile sector, the Study says that India is the second largest producer of cotton yarn and silk and is the third-largest producer of cotton and cellulose fibre/yarn.
India is also fourth largest producer of man-made fibres and yarns and has the largest spindleage in the World with 23 percent share. India contributes 45 percent of the world loomage (excluding handlooms).
Despite strengths, the domestic textile sector faces certain threats with phasing out of quota system in January 2005. Some of threats include that Indian exports in the overseas markets and domestic production have felt the impact with large-scale imports especially in the high and premium fabrics and apparel.
ASSOCHAM is India's premier apex chamber covers a membership of over 100,000 companies and professionals across the country. It was established in 1920 by six chambers, representing all regions of India.
The Associated Chambers of Commerce and Industry of India
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