TEXTILE BUSINESS:

INDIAN & GLOBAL SCENARIO (Including SWOT Report)

Scenario and SWOT Report on Natural Fibre.

FABRIC SCIENCE ASSIGNMENT: TERM 01

PREPARED BY:

1. Shreya Deb (BFT/21/122)

2.Shashuwar Atray (BFT/21/712)

 INTRODUCTION:

This is a report prepared on “TEXTILE BUSINESS: INDIAN & GLOBAL SCENARIO

(Including SWOT Report) And Scenario and SWOT on Natural Fibre JUTE where
we have done a study/Research on the give topics using authentic resources and
have prepared a SWOT report on same.

Objectives:
• To study about Global textile business.
 To study about Indian textile business.
 To study about any one natural fibre.
 To make SWOT REPORT on all the 3 above mentioned objectives.

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 CONTENTS:

S.NOS TITLES/SUB TITLES: PAGE NOS:

01. INTRODUCTION 02
02. CONTENT 03
03. ACKNOWLEDGEMENT 04
04. BASIC INTRODUCTION 05 – 06
05. GLOBAL TEXTILE 07 – 08
INDUSTRY
06. SWOT 09 – 12
07. INDIAN TEXTILE INDUSTRY 13 – 19
08. SWOT 16 – 19
09. BASIC NATURAL FIBRE 24 – 25
10. BASIC INTRODUCTION JUTE 26 – 27
11. GLOBAL JUTE INDUSTRY 28
12. INDIAN JUTE INDUSTRY 29
13. SWOT JUTE (GLOBAL & 30 – 33
INDIA)
14. CONCLUSION 34
15. REFERENCE 35

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 ACKNOWLEDGEMENT:

We would like to sincerely thank our faculty of FABRIC SCIENCE Mr. Abhijit
Mukheerjee for his significant role behind the accomplishment of the assignment.
We have been guided with lots of his valuable suggestions and experience
throughout the process of completion of the assignment.
 

We would also like to express my gratitude to my peers, without their support and
cooperation this assignment could not have been accomplished. Finally, we would
like to thank my parents for their love and blessings!

With Thanks!
Shreya Deb (BFT/21/122)

Shashuwar Atray (BFT/21/712)

Place: NIFT KOLKATA (ONLINE SEMESTER)

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Date: 23/10/2021

THE TEXTILE INDUSTRY: BASIC INTRODUCTION

TEXTILE: Textile is woven or knitted fabric made from yarn. Textile is also associated with
clothing production. FIBRE is the raw material of textile which may be natural or man-made.

TEXTILE INDUSTRY: The textile industry is the industry that involves the sections like
research, design, development, manufacturing and distribution of textiles, fabrics and clothing.
 The textile industry is a global terminology comprised of every business involved in the
developing, producing, manufacturing, and distribution of textiles. It is also a very complex
industry.

 Starts in agriculture with FIBRE production, husbandry of sheep and silkworm, mining of
metals and minerals. Then these FIBREs are processed into yarns, fabrics and apparel.
Includes spinning mills, weaving mills, knitting mills, dyeing mills, garments.

 Additionally, companies that sell buttons, zippers, knitting supplies, sewing machines and
threads, laces, looms, and drapery hardware is also related to this industry. Also includes
material such as carpeting, towels, upholstery, or even industrial products such as fire
hoses.

SOME TERMANALOGIES: Misconception Between the terms Clothing/Garment, Textile and

Fashion industry.

 Clothing Sector: concerned for all types of clothes (fashion, Uniforms, E-textiles, Work

wear, etc)
 Textile industry: concerned with the production of the fabrics and FIBREs.
 The fashion industry: Sets fashion trends to always supply the latest in non-functional
clothing.

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THE DEVELOPMENT OF TEXTILE: The process describing the stages of manufacturing
procedure is listed below: ***figure01

STEP1: Spinning.

STEP 2: Weaving.

STEP 3: Dyeing + Printing + Finishing.

STEP 4: Garments Manufacturing.

FIGURE 01: THE STEPS IN DEVELOPMENT OF TEXTILE.

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THE TEXTILE INDUSTRY (GLOBAL): SCENARIO

BASIC:

 The textile industry is an ever-green and constantly growing industry, with giants like being
China, the European Union, the United States, and India.

 Textile provides is the second largest employment sector of after the agriculture sector in
most of the all developing and under developing countries. The global textile industry was
estimated to be around USD 920 billion in 2018, and it is projected to witness a CAGR of
approximately 4.4% during the forecast period to reach approximately USD 1,230 billion by
2024.

FIGURE 02: COUNTRY WISE CONTRIBUTION, GLOBAL TEXTILE.

COUNTRY WISE CONTRIBUTION IN TEXTILE BUSINESS: ***figure02

 CHINA: the world's leading producer and exporter of both raw textiles and garments.

 THE UNITED STATES: the leading producer and exporter of raw cotton and top importer
of raw textiles and garments.

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 EUROPEAN UNION (GERMANY, SPAIN, FRANCE, ITALY & PORTUGAL): shares
value of more than 1/5th of the global textile industry, and it is currently valued at more than
USD 160 billion.

 INDIA: the third-largest textile manufacturing industry holds an export value of more than
USD 30 billion, responsible for more than 6% of the total textile production (Globally)
valued at approximately USD 150 billion.

MARKET SIZE:

 The textile market is poised to grow by $ 549.87 bn during 2021-2025 progressing at

a CAGR of over 5% during the forecast period. Our report on textile market provides
a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as
well as vendor analysis covering around 25 vendors.

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THE TEXTILE INDUSTRY (GLOBAL): SWOT

 WHAT IS SWOT ANALYSIS: A study undertaken to identify internal strengths, weaknesses, external opportunities
and threat on any subject considered.

 Strong backward linkage facilities: This industry

possesses strong backward linkage facilities. This has
proven to be a great asset on multiple occasions. This
causes this sector to improve more in its own way. Also, it
provides the industry with some much-needed support.

STRENGTH  New Technologies: The technological changes impart

improvement in quality, accelerate the process and reduce
the preparation time, which increases the flexibility in
product with increase in cost.

 Cost Effective: As multiple textile industries have started

doing their business with suppliers through internet, it has
observed that there is drastic reduction in the costs. The
use of Ecommerce in Textile industry saves 3% to 15% of
their indirect cost.

 Product Diversification: In the ever-changing world

economy and fast-moving world of fashion, product
diversification is key to success. The RMG sector of most
developing countries has taken this stature to new heights
and we expect a bright future ahead.

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  Lack of modern machinery: The textile industry lacks
technology-oriented machinery and production systems. If
these aren’t updated then they could take a heavy toll on its
production. This will later reflect in its sales and profits.

WEAKNESS  Unable to go with the flow: Once a steady line of the

production system is in place, it is very hard to suddenly
change it to accommodate any new type of clothing article.
As a result, it lacks product diversification. It also has a very
short lead time which is not good for this line of work. It
holds back the whole industry.

 Depending on some specific buyers: Dependency on a

few particular buyers can be the downfall of this industry.
Many of the farmhouses depend on a few of their known
customers for their sales. They do not get many new
buyers most of the time and this causes their sales rate to
pummel once any of these buyers drop out or change their
choice of farmhouses.

 Higher bank interest and insurance policy: This industry

has to face a lot of unfair treatment. Especially when it
comes to banks and insurance companies. Banks require a
high interest while taking loans which is nothing short of
illogical. Many insurance companies, if not all, have a high-
priced insurance policy with partial conditions. The industry
has to suffer for this.

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  Buyer attention on the Asian market: Many of the
international buyers are being more interested in the Asian
section of the market. This may be a golden opportunity for
the Asian industries to take the market by storm. It will also
be a huge turning point for this industry in general.

 Buyer initiatives for productivity: In this field, many times

OPPORTUNITIES buyers take responsibility to initiate the push for
productivity. This shows that the buyers are actually
interested in the said products. So, this gives a huge boost
to the morale.

 Increasing Demand for Natural FIBREs: The abundance

of natural FIBREs, especially cotton, in China, India, and
the United States, is contributing significantly to the growth
of the global textile market. Silk is used in upholstery and
apparel, as it is available in both variations fine as well as
coarse. Wool and jute are used as textile materials for their
resilience, elasticity, and softness. The increasing
consumption of natural FIBREs, such as cotton, silk, wool,
and jute, will drive the global textile market during the
forecast period.

 Government and non-government training

programs: There are a lot of people who work in this field.
Even though they have curiosity, they often lack the skills
that are needed. So, these government and non-
government training programs can help them to enhance
their skill-set. This provides the chance of improvement to
this sector.

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  High making cost: The making cost for this industry is
quite high and very hard to achieve. So this makes having
profit very hard.

THREAT  Political and environmental crisis: Countries that have a

troublesome political environment, have fewer buyers than
those that don’t have them. Environmental issues can also
influence the flow of buyers in a country.

 Freight on board cost: Many times, the seller has to take

the responsibility for goods, freight, and marine insurance.
This is a convenient system no doubt. But if an accident
happens the loss is very hard to deal with. This will majorly
impact the earnings of it.

 E-shops and on-demand shops: There are many e-shops

and on-demand shops that are mushrooming their way into
the market. Now, the market actually has some Internal
competition going on. So, these new shops often end up
stealing a lot of customers away from the industry.

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THE TEXTILE INDUSTRY (INDIAN): SCENARIO
BASIC:

 The textile industry in India traditionally, after agriculture, is the only industry that has
generated huge employment for both skilled and unskilled labor. The textile
industry continues to be the second-largest employment generating sector in India. It
offers direct employment to over 35 million in the country .
 The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one
end of the spectrum, while the capital-intensive sophisticated mills sector on the other
end. The decentralized power looms/ hosiery and knitting sector forms the largest
component in the textiles sector.
 The close linkage of textiles industry to agriculture (for raw materials such as cotton) and
the ancient culture and traditions of the country in terms of textiles makes it unique in
comparison to other industries in the country. India’s textiles industry has a capacity to
produce wide variety of products suitable for different market segments, both within
India and across the world.

FIGURE 02: CATEGORISATION OF INDIAN TEXTILE INDUTRY.

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 MARKET SIZE:

  According to the Ministry of Textiles, the share of textiles in total exports during April–
July 2010 was 11.04%. During 2009–2010, the Indian textile industry was pegged
at US$55 billion, 64% of which services domestic demand. In 2010, there were 2,500
textile weaving factories and 4,135 textile finishing factories in all of India. According
to AT Kearney’s ‘Retail Apparel Index’, India was ranked as the fourth most promising
market for apparel retailers in 2009.

 India’s textiles industry contributed 7% to the industry output (by value) in 2018-19. The
Indian textiles and apparel industry contributed 2% to the GDP, 12% to export earnings
and held 5% of the global trade in textiles and apparel in 2018-19.

 The share of the India’s textiles and apparel exports in mercantile shipments was 11% in
2019-20.Textiles industry has around 4.5 crore employed workers including 35.22 lakh
handloom workers across the country.

 Cotton production is expected to reach 37.10 million bales and consumption is expected
to reach 114 million bales in FY21—13% growth over the previous year.

 In July 2021, exports of cotton yarn/fabrics/made-ups, handloom products, etc., from

India increased by 50.86% in June 2021 over June 2019.

 The production of raw cotton in India is estimated to have reached 36.04 million bales in
FY20. During FY19, production of fibre in India stood at 1.44 million tonnes (MT) and
reached 1.60 MT in FY20 (till January 2020), while that for yarn, the production stood at
4,762 million kgs during same period.

:GRAPHICAL REPRESENTATATION OF INDIAN TEXTILE INDUTRY.

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 INVESTMENT:

 The textiles sector has witnessed a spurt in investment during the last five years. The
industry (including dyed and printed) attracted Foreign Direct Investment (FDI) worth
US$ 3.75 billion from April 2000 to March 2021.

 In May 2021, Indo Count Industries Ltd. (ICIL), announced an investment of Rs. 200
crore (US$ 26.9 million) to expand its production capacity.

 The production-linked incentive (PLI) scheme for man-made fibre and technical
textiles will help boost manufacturing, increase exports and attract investments into
the sector.

GOVERNMENT INITIATIVE FOR INDIAN TEXTILE BUSINESS: Indian

government has come up with several export promotion policies for the textiles sector. It has
also allowed 100% FDI in the sector under the automatic route.
Initiatives taken by Government of India are:

 In August 2021, Minister of State (MoS), Ministry of Petroleum & Natural Gas and
Labour & Employment, Mr. Rameswar Teli launched ONGC-supported Assam
handloom project ‘Ujjwal Abahan’ through the virtual platform. The project will
support and train >100 artisans of Bhatiapar of Sivasagar, Assam in Hathkharga
handicraft.
 In August 2021, Flipkart and Himachal Pradesh State Handicrafts and Handloom
Corporation Ltd. (HPSHHCL) signed a memorandum of understanding (MoU) to
help the state’s master craftsmen, weavers and artisans showcase their hallmark
products on e-commerce platforms.
 In August 2021, Union Minister of Textiles, Commerce and Industry, Consumer
Affairs & Food and Public Distribution, Mr. Piyush Goyal said that steps need to be
taken to boost production capacities of handloom sector from existing Rs. 60,000
crores (US$ 8.06 billion) to 125,000 crore (US$ 16.80 billion) in three years. He
added that target must be set to increase exports of handloom items from existing Rs.
2,500 crore (US$ 335.92 million) to Rs. 10,000 crore (US$ 1.34 billion) in three
years. He also announced that a committee will be constituted consisting of all

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 weavers, trainer equipment makers, marketing experts and other stake holders to
recommend ways and means to achieve these objectives and enhance overall progress
of the handloom sector.
 In July 2021, the government extended the Rebate of State and Central Taxes and
Levies (RoSCTL) scheme for exports of apparel/garments and made-ups until March
2021. This will help boost exports and enhance competitiveness in the labor-intensive
textiles sector

STATE WISE TEXTILE HUB INDIA: ***figure03

 MAHARASHTRA:  Sholapur, Kolhapur, Pune, Jalgaon, Akola, Sangali, Nagpur,

Satara, Wardha, Aurangabad and Amravati.

 GUJARAT: Surat, Vadodara, Bharauch, Bhavnagar, Nadiad, Porbandar, Rajkot,

Navsari, mauri and Viramgam.

 TAMIL NADU: Chennai, Tirunelveli, Madurai, Tuticorin, Salem, Virudhnagar and

Polachi.

 UTTAR PRADESH: Kanpur, Etawah, Modinagar, Moradabad, Bareilly, Hathras, Agra,

Meerut and Varanasi.

 KARNATAKA: Bangalore, Belgaum, Mangalore, Chitradurga, Galbarga and Mysore.

 MADHYA PRADESH: Indore, Gwalior, Mandasaur, Dewas, Ujjain, Nagda, Bhopal,

Jabalpur and Ratlam.

 RAJASTHAN: Kota, Jaipur, Sriganganagar, Bhilwara, Bhavanimandi, Udaipur and

Kishangunj.

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 WEST BENGAL: Kolkata, Howrah, Serampore, Shyamanagar, Saikia, Murshidabad,
Hugli and Panihar.

FIGURE 03: TEXTILE GIANTS STATES WISE INDIA.

IMPACT OF COVID ON TEXTILE BUSINESS INDIA: ***figureA

 The widespread impact of the covid-19 which has left no sectors unturned and is
expected to decelerate the growth projection of the textile and apparel industry in India,
which was once projected to grow at a CAGR of ~12% to reach USD 220 billion (INR
16,637 billion) by 2025-26(as per the data released by the Ministry of Textiles).

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 Due the outbreak of the pandemic, it is expected that the domestic market is seen
shrinking by around 28%-30% to USD 61 billion (INR 4,163 billion) led by the decline
in the sales mostly in the Q1 for the current financial year ending 20-21.

 Textile and apparel exports in 2020-2021 are almost 13% less (in dollar terms) than
the previous year, provisional data available with the Cotton Textiles Export
Promotion Council shows.
 The exports were worth $29 billion last year as against $34 billion in 2019-
2020.Exports of ready-made garments declined 20.78% last financial year
compared with the previous year, while exports of man-made textile items fell
21.20 %.
 The final data, expected later this month, may be better even for overall textile
exports in 2020-2021. Textile and clothing exports are expected to do well at least
till June since countries such as the U.S. and U.K. are looking up and China has
also started buying. “We expect this year to be better than last year,” he added.

FIGURE A: PRE AND POST COVI GRAPHICAL REPRESNTATION

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ROAD AHEAD:

 India is working on major initiatives, to boost its technical textile industry.

Owing to the pandemic, the demand for technical textiles in the form of
PPE suits and equipment is on rise. Government is supporting the sector
through funding and machinery sponsoring.

 Top players in the sector are attaining sustainability in their products by

manufacturing textiles that use natural recyclable materials.The future for
the Indian textiles industry looks promising, buoyed by strong domestic
consumption as well as export demand.

 With consumerism and disposable income on the rise, the retail sector
has experienced a rapid growth in the past decade with the entry of
several international players like Marks & Spencer, Guess and Next into
the Indian market. High economic growth has resulted in higher disposable
income. This has led to rise in demand for products creating a huge
domestic market.
.

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THE TEXTILE INDUSTRY (INDIA): SWOT
 WHAT IS SWOT ANALYSIS: A study undertaken to identify internal strengths, weaknesses, external opportunities
and threat on any subject considered.

 Indian Textile Industry is an Independent & Self-Reliant

industry.

 Abundant Raw Material availability that helps industry to

control costs and reduces the lead-time across the
operation.

 Availability of Low Cost and Skilled Manpower provides

competitive advantage to industry.
STRENGTH
 Availability of large varieties of cotton FIBRE and has a fast
growing synthetic FIBRE industry.

 India has great advantage in Spinning Sector and has a

presence in all process of operation and value chain.

 India is one of the largest exporters of Yarn in international

market and contributes around 25% share of the global
trade in Cotton Yarn.

 The Apparel Industry is one of largest foreign revenue

contributor and holds 12% of the country’s total export.

 Industry has large and diversified segments that provide

wide variety of products.

 Growing Economy and Potential Domestic and

International Market.

 Industry has Manufacturing Flexibility that helps to increase

the productivity.

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  India lacks in cost fight: The Indian industry does
not hold efficient economic systems of graduated
table therefore unable it is incapable of vying with
China.

WEAKNESS  Indian industry has the longest supply

concatenation: The mean clip taken by all the
states from the reoccurrence of natural stuff to
production of finished goods and eventually
exporting it is 45 years, whereas India takes
around 80 years.

 Lacks in trade pact memberships: It leads to

restricted access to the other major markets.

 Disconnected substructure: India is unable to

diversify. In fabric production big portion of the
industry is engaged in unorganised sectors like
power looms and handlooms.

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  Merchandise development and variegation: The
Indian companies need to concentrate on
merchandise development and variegation in order
to capture new markets globally. They need to put
in design Centres and investing labs. Specialized
and smart cloths should be introduced.

OPPORTUNITIES  Companies need to concentrate on new

product developments: Increased use of CAD to
develop designing capabilities and for developing
greater options.

 Growth rate of Domestic Textile Industry is 6-8%

per annum.

 Large, Potential Domestic and International

Market.

 Product development and Diversification to cater

global needs.

 Elimination of Quota Restriction leads to greater

Market Development.

 Market is gradually shifting towards Branded

Readymade Garment.

 Increased Disposable Income and Purchasing

Power of Indian Customer opens New Market
Development.

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  Competition from other developing countries,
especially China.

 Continuous Quality Improvement is need of the hour as

there are different demand patterns all over the world.

 Elimination of Quota system will lead to fluctuations in

Export Demand.

THREAT
 Threat for Traditional Market for Power loom and
Handloom Products and forcing them for product
diversification.

 Geographical Disadvantages.

 To balance the demand and supply.

 To make balance between price and quality: The Indian

fabric industry is not able to keep balance between
monetary value and quality. Therefore, most of the large
companies in the United States and the European Union
are switching their fabrication orders to China.

 International labour and Environmental Laws:

Standards such as SA-8000 or WARP have resulted in
increased pressure on companies for improvement of their
working practices. Threat for Traditional Market for Power
loom and Handloom Products and forcing them for product
diversification.

 Threats from different countries: China is the biggest

menace to the Indian fabric industry in the planetary
market. India besides has a menace from low cost bring
frothing states like Pakistan and Bangladesh which may
impede India’s exports demand in the hereafter.

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NATURAL FIBRE: BASIC INTRODUCTION

WHAT: Fibres are thread-like structures that are long, thin and flexible. These may be spun
into yarns and then made into fabrics.

CLASSIFICATION OF FIBER: There can be different types of fibres. On the basis of their
origin, fibres are classified as natural fibres and synthetic fibres.

FIGURE 04: CLASSIFICATION OF FIBRE.

EXAMPLE OF NATURAL FIBER:

1. Animal fibres: These are the fibres that are obtained from animals. For example Wool,
silk etc.

 Wool: Wool is a natural textile fibre obtained from sheep, goats and camels. It traps
a lot of air. Air is a bad conductor of heat. This makes clothes made from wool useful
in winter.

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  Silk: Silk is also a natural textile fibre which is obtained from silkworms. The rearing
of silkworm to obtain silk is known as sericulture .

2. Plant fibres: These are the ones that are obtained from plants. These fibres are
extracted from the plants to make fabrics.

 Cotton: It is one of the plant fibres that are used to make clothes. It is a soft staple
fibre that is found as a boll around the seeds in a cotton plant.
 Jute: It is a vegetable fibre that is soft, shiny and is spun into coarse strong threads


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JUTE (NATURAL FIBRE): BASIC INTRODUCTION

WHAT IS JUTE: Jute (***figure 04) is a long, soft, shiny bast FIBRE that can be spun into
coarse, strong threads. It is produced from flowering plants in the genus Corchorus, which is
in the mallow family Malvaceae.

FIGURE 04: NATURAL FIBRE JUTE.

PRIMARY SOURCE:

 The primary source of the FIBRE is Corchorus olitorius, but such FIBRE is considered
inferior to that derived from Corchorus capsularis. "Jute" is the name of the plant or
FIBRE used to make burlap, hessian or gunny cloth.

 The jute plant(***figure 05), which probably originated on the Indian subcontinent, is an
herbaceous annual that grows to an average of 10 to 12 feet (3 to 3.6 meters) in height,
with a cylindrical stalk about as thick as a finger. The two species grown for jute fibre are
similar and differ only in the shape of their seed pods, growth habit, and fibre
characteristics. Most varieties grow best in well-drained, sandy loam and require warm,

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 humid climates with an average monthly rainfall of at least 3 to 4 inches (7.5 to 10 cm)
during the growing season. The plant’s light green leaves are 4 to 6 inches (10 to 15 cm)
long, about 2 inches (5 cm) wide, have serrated edges, and taper to a point. The plant
bears small yellow flowers.

FIGURE 05: JUTE PLANT.

PRODUCTIONT OF JUTE FIBRE: (***figure 06)

FIGURE 06: STEPS INVOLVED IN JUTE PRODUCION.

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JUTE INDUSTRY (GLOBAL): INTRODUCTION

PHOTOGRAPH OF JUTE MILL.

 REVENUE: The global jute bag market attained a value of USD 1.9 billion in 2020. The
market is expected to reach USD 3.3 billion by 2026 while registering a CAGR of 9.4%
during the forecast period of 2021-2026. 
 Capacity utilization of the industry is around 75 per cent. Jute industry contributes to the
export earnings in the range of Rs. 1,000 to Rs.1, 200 crores annually.
 As on date, there are 94 composite jute mills out of which the state of West Bengal has 70
jute mills with Andhra Pradesh having 10 mills, Uttar Pradesh 3 mills, Bihar 3 mills, Orissa 3
mills, Assam 2 mills, Chhattisgarh 2 mills and Tripura 1 Jute Mill. As on 31.08.2015, 26
mills are closed. According to the closure notices issued by the managements, the principal
reasons for the closure of mills are labor indiscipline, absenteeism and trade unionism.

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JUTE INDUSTRY (INDIA): INTRODUCTION

PHOTOGRAPH OF JUTE MILL.

 JUTE INDUSTRY is regarded as India’s second-most important industry after Cotton.

 The jute trade is centred mainly around India and in the West Bengal. The major producing
country of jute is India. Bengal Jute was exported to South East Asia from the 17th century
by the Dutch, French and later by other Europeans.
 Bangladesh is still the largest producer and exporter of raw jute in the world. After the
separation of Bangladesh (East Pakistan) from Pakistan in 1971, the jute trading was not
limited to specific groups like India or Pakistan.
 REVENUE: Jute fibers accounted for 37 billion Indian rupees in the Indian economy in
fiscal year 2019. This variety of fibers made up nearly six percent of the sector that year.
Fibers, overall contributed about 632 billion rupees to the GVA of crops that same year.
 GOI INITIATIVES:
A. Effective implementation of Jute Packaging Material Act, 1987 (JPM Act) for
thepackaging of rice and paddy in Bengal to generate additional demand for jute
products.
B. Introduce mandatory packing of potatoes and other vegetables in the state in jute
hessian bags. All State Governments has been requested to promote use of jute as geo-
textiles in Pradhan Mantri Gram Sadak Yojana (PMGSY) roads, district roads and State
Highways, in river embankments and in slop stabilization.

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JUTE INDUSTRY (INDIA AND GLOBAL): SWOT
KEYWORDS GLOBAL INDIAN

 Jute is biodegradable and  Jute is a labour-intensive industry,

sustainable and its production which engages 4.35 million
has been long established. people. Jute industry has lot of
The production can be potential of providing employment
increased in a very short especially in East Indian region.
period of time. The industry offers employment
opportunity to 7,500 persons per
year, besides more opportunity lie
STRENGT  Processing has shifted to a ahead in expansion of existing
capacity in new mills that are
large degree to producing
H countries bringing much coming up in SSI and MSI.
needed added value and
employment
 Jute is an eco-friendly and
biodegradable product. With the
pressure from green movement, it
 It is a leading material in is going to sustain through
sacking, yarns, carpet backing, consumer's preference.
upholstery, shopping bags,
cordage, twines, construction,
packaging, geotextiles and
whole host of technical uses
such as filters, insulation,
rubber coating and thus there
is a huge demand in the global
market.

 The industry is fragmented  Frequent revision of PJMA

and individual exporters and guidelines (to add or dilute items
those representing them lack for jute packing) leaves the
the resources to match industry in confusion whether to
competing material suppliers invest further on the Jute
WEAKNES for product and market
development and promotion.
technology development/product
development/market expansion or
S wait for new policies etc.
 Jute is being substituted by
many other synthetic fibres  Though jute industry is a labour
which has better properties intensive, wages represent 35%
and cheaper in rate has of total conversion cost of jute
increased the competition in industry, which evades the profit
the global market. margins.

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  The main response to the  Multi unionism is one of the major
challenge of competition problems faced by jute industry
was to try to cut costs which and engages major concentration
proved disastrous when a of routine management in
lighter weight secondary resolving labour dispute.
carpet backing was promoted
and cut the margins of growers
and processors often to below  The machinery used in jute
viable levels. industry is old and obsolete with
age of machinery ranging
between 40 - 150 years. They
have lost their capacity to produce
quality products and in spite of
 Some of the traditional end-
routine maintenance, fail to yield
users are no longer required in
standard machine production.
some market segments such
as packaging where bulk
handling has displaced
 Marketing has been another weak
sacking.
point of jute industry. It has been
maintaining a very slow pace in
coming out of traditional way of
marketing.

 There are new end uses that

offer good prospects for  In many areas Indian Jute
developing, some of which industry is ahead of other jute
could absorb substantial producing and manufacturing
quantities of jute. countries viz.
OPPORTU
NITIES  While the richest industrialised  It has learned how to upgrade a
countries are switching away lower grade fibre in the batch mix.
from sacking to bulk handling,
there are very many countries
that cannot switch to bulk
 It also leads in diversified value-
handling in the near or
added products.
medium future.
 The Government at the centre
and at state has pro-jute mindset.
 Synthetic substitutes to jute
They have plans for taking jute
have also been commoditised
industry to new horizon. This is
with low rates of return and

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 production is being moved to evident from National Jute Policy
lower wage countries. 2005 which targets to reach
export Rs 5,000 crores in the 11th
fine year plan from present
amount of Rs
1,000 crores.

 Brazil is one of the major

importers of Indian Jute, and is
estimated to have a market of
25,000 tonnes of food grains, and
few of Indian jute bag producers
have been awarded zero duty
which opens new doors to other
industry producers.

 Reduction of jute exports is  One of the major threats faced by

leading to a reduced level of
Indian jute industry/producers is
material consciousness in
some markets. from Bangladesh Jute industry,
which is armed with 7% cash
subsidy on all items of jute
products without any string.

 The Indian market depends on  Withdrawal of Export Subsidy

regulatory protection to a large Assistance (ESA) from 1 April,
THREAT degree and this cannot be 2007 has been a setback to the
taken for granted. export of Indian Jute industry.

 The Union Cabinet Committee for

Economic Affairs (EA) has
approved the continuation of
Technical Up gradation Fund
 The substantial export sacking Scheme (TUFS) for next 5-year
market accounting for over plan 2007 - 12 for Indian Textile
180,000 tons annually is under
industry including jute industry.
pressure from bulk handling.
The size of investment is
projected at Rs 1,506 crores for
this period but it is understood
that jute sector may not get its
due share from TUFS money,
particularly for jute machinery
modernisation and for upgrading
technology.

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 The Department of Food and
Public Distribution (DFPD) has
issued orders for packaging
paddy and coarse grains in used
gunny bags which is a violation of
Jute Packaging Material Act,
1987, which is considered as
threat by jute industry.

 As the synthetic lobby is gaining

power there is a pressure on
government to dilute jute
reservation norms from existing
70% to 30% for grains and from
75% to 25% for sugar. Though the
government has not made the
revision yet, this pressure on
government is a threat to jute
industry.

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 CONCLUSION:

The purpose of the report was to study about “TEXTILE BUSINESS: INDIAN &
GLOBAL SCENARIO (Including SWOT Report) And Scenario and SWOT on Natural
Fibre JUTE where we have done a study/Research on the give topics using
authentic resources and have prepared a SWOT report on same.
Based on the study done, it can be concluded that there are Strength,
Weaknesses, Opportunities and Threat to Textile Business running on both the
levels Global and well as India. Also, the same can be seen for the Natural Fibre
Jute and related Industry.
Also effective of different initiatives from global level or national level
organization and government which is well depicted in the report work done along
with all the other topics which are covered.

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 REFERENCES:

 https://www.textileinfomedia.com/blog/textile-manufacturing-process-with-flow-chart/

 https://icwhatsnew.com/458-swot-analysis-of-indian-textile-industry/

 https://en.wikipedia.org/wiki/Jute#:~:text=%22Jute%22%20is%20the%20name
%20of,plant%20materials%20cellulose%20and%20lignin.

 https://www.textileinfomedia.com/blog/wp-content/uploads/2020/02/textile-
manufacturing-process.jpg

 https://en.wikipedia.org/wiki/Clothing_industry#:~:text=Clothing%20industry%20or
%20garment%20industry,to%20apparel%20retailers%20up%20to

 https://www.google.com/url?sa=i&url=https%3A%2F%2Ftotebagfactory.com%2Fblogs%2Fnews
%2Fis-jute-eco-

 http://horizonresearchpartners.com/wp-content/uploads/2015/01/Jute-Industry.pdf

 https://static.investindia.gov.in/s3fs-public/styles/clusters_banner/public/2019-11/
Textiles_Cluster-Map.png?itok=DTeaowCP

 https://www.mordorintelligence.com/industry-reports/global-textile-industry---growth-
trends-and-forecast-2019---2024

 https://en.wikipedia.org/wiki/Jute_trade#:~:text=Bangladesh%20is%20still%20the
%20largest,groups%20like%20India%20or%20Pakistan.

 https://study.com/academy/lesson/what-is-the-textile-industry.html

 https://www.gktoday.in/gk/jute-industry-of-india/

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