An International Business Study:
COMPETITIVENESS OF INDIAN COTTON TEXTILE INDUSTRY IN GLOBAL TEXTILE MARKET:
A PERCEPTUAL ANALYSIS

Introduction:
Globalization has brought vast market opportunities foot the Indian Cotton Textile Industry. At the same time, the industry is exposed to the threats of fierce competition from China, Vietnam, Thailand and Indonesia after the abolition of Multi-fibre Arrangement (MFA). Global competitiveness has become a driving force assuring survival and growth in this rapidly changing environment. The organizations must strive for ways and means for achieving it. The present study explores into the components of competitiveness of Indian Cotton Textile industry and identifies the challenges in the post MFA regime.

Objectives of the study:

The present study is primarily focused
• To explore the competitiveness of Indian cotton textile industry in terms of input factors
• To identify the competing nations who can pose challenge to Indian Cotton Textile industry from 2005, when WTO provisions would become globally applicable.

Methodology:

The study has collected the primary data from Personal Interviews from 242 respondents holding top and middle level executive positions in 81 textile manufacturing companies through a structured questionnaire. Most of questions are on five point scale. The sample is drawn from the all India population of 315 units whose addresses are available in All India Textile Directory, 2001. Firms participated in Tex Style 2004 exhibition at New Delhi are drawn as sample units
Data Analysis:

study has carried out the data analysis on aspects like cost – competitiveness of input factors, competitiveness in terms of finance, competitiveness in terms of raw materials, labour, technology, power availability, transportation, etc. Percentages are worked out for each category of responses in five point scale for different dimensions of each of the above factors considered by the study.

Findings of the Study:

The study reports the following observations based on the opinions of large size number of functionaries involved in the management of the Textile Industry. The following are the major observations:
• 90% of respondents are of the opinion that India enjoys competitiveness in respect of labour cost, 86% with respect to transportation cost, 76% in case of raw material cost
• 65% of respondents agree the easy availability of finance in India, however, access to global technology is just around 2 per cent in India. Countries like China, Malaysia, Taiwan and even Pakistan found to have more sophisticated looms than in India.
• Study observes that the globalization posed many threats to Indian industry in terms of raising protectionism, discriminatory government policies, off set requirements, forced technology transfer, local content requirements. It is observed that counties like China, Taiwan, South Korea are emerging out as potential threats to India

Conclusions:

The study observes that the Indian Cotton Textile Industry is globally competitive on all input factors excepting the technology. The hiccups are in the areas of finance, power and in the area of technology