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Whitepaper

Whitepaper

Indian Textile Industry and its Integration with the Global Value Chain

Textile happens to be a vibrant sector under the value chain process. This industry has an immense impact on the economies of many countries. In this edition of our GVC-series whitepapers, we focus on the growth potentials of the Indian Textile Industry, examine the network of its trading partners, economic impacts and way forward.

Under GVC, Textiles value chain is a ‘buyer-driven chain’ where lead firms are the buyers in developed countries. These resourceful textile houses play the role of the coordinators in the global apparel space. They coordinate with the local industries in developing countries on the one hand, and interface with the final consumers, on the other. Entry barriers to value chains are based on knowledge or skills that are unique and not universally accessible, insulating firms from simple price-based competition. Most value in the apparel sector is added at the planning and retail ends, associated with the control of key functions such as branding, designing, and marketing, which are highly knowledge intensive.

The textiles and clothing (T&C) industry has the credit of being a significant contributor to the early successes of most of the Asian countries as well as to the development of their distinct value chains. Many late-comer countries such as Vietnam, Cambodia, and a few more acquired prominent positions in the global value chains (GVCs) owing to their participation in this industry. Against this backdrop, this research portrays the Indian context for this sector.

In this white paper, we take a look at:

  • The textile value chain is perceived as a ‘buyer driven chain’
  • Production and distribution flow of the textiles and apparel value chain
  • The Apparel Value Chain ProcessTextile Industry in IndiaMarket
  • Access Assessments: The Indian Advantages
  • The Indian textile industry: Way Forward

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