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Global Research Paper: India

|Clothing Inventory |

|Country of Origin |Items from origin |

|Bangladesh |2 |

|China |29 |

|Cambodia |1 |

|Colombia |1 |

|El Salvador |2 |

|Guatemala |2 |

|Hong Kong |1 |

|India |3 |

|Indonesia |3 |

|Japan |7 |

|Lesotho |2 |

|Malaysia |1 |

|Mexico |1 |

|Pakistan |1 |

|Swaziland |1 |

|United States |7 |

|Vietnam |6 |

INTRODUCTION

India officially named the Republic of India is a state in South Asia surrounded by the Indian Ocean, Arabian Sea and Bengal. Neighboring countries consist of Pakistan, Bhutan, China, Nepal, Bangladesh and Burma. Though, a developing nation, the country of India is very becoming by having the seventh largest country by geographical area and a population of 1.2 billion people which earns the country the spot for the second most populated country. The Indian economy is the eleventh largest by nominal Gross Domestic Product and fourth largest by Purchasing Power Parity. Ruled by a federal constitutional republic, limiting the government power over all its citizens by following the belief of “rule by law” , the country is a member of several organizations : United Nations , the Non-Aligned Movement, The World Trade Organization , The South Asian Association for Regional Cooperation , The East Asia Summit , The G20 , The G8+5 , Common Wealth of Nations and amongst one of the BRIC nations.

DEMOGRAPHICS

India’s estimated population for July 2011 is 1,189,172,906, which makes it the second most populated country. India’s population growth rate is 1.376% with men’s population surpassing women by 1.08. 29.7% of the overall population are between the ages of 0-14. 64.9% are between the ages of 15 and 64, while only 5.5% of the population is over the age of 65. The total life expectancy of the country is 66.8 years of age.

61% of India’s total population over the age of 15 can read and right. 73.4% of that figure are male, while 47.8% are female. The school life expectancy, primary to tertiary education is averaged at 10 years. 11 years for male and 9 years for female students.

There are an estimated 2,000 plus ethnic groups within the Indian population. However, the two largest races in India recognized by the national census are Indo-Aryan which accounts for 72% of the population and Dravidian at 25%, other races make up 3% of the total population. Hinduism is the most popular religion practiced at 80.5%, Islam 13.4% and Christianity practiced by 2.3%. Other religions consist of Sikh at 1.9% and the rest practiced by 1.8% and .1 % unspecified. Though, English is the subsidiary official language of the India for global business and communication purposes, there are 15 official languages spoken within the country with Hindu being largely spoken by 41% followed by Bengali 8.1% ,Telugu 7.2%,Marathi 7%,Tamil 5.9%,Urdu 5%,Gujarati 4.5%,Kannada 3.7%,Malayalam 3.2%,Oriya 3.2%,Punjabi 2.8%,Assamese 1.3%,and Maithili 1.2%.

The average income is $3,400 which in comparison to the world, India is listed 164 of per capita GDP (PPP) worldwide. 90.2% of India’s workforce are employed and 10.8% are unemployed.

ECONOMIC OVERVIEW

As a developing and newly industrialized country with recent establishments as a free market, India’s state of economy is the 4th largest in the world by nominal GDP with 8.20% of growth. The GDP (Purchasing Power Parity) is 4.046 trillion making it 5 in comparison to the world. Its GDP Official Exchange Rate is at $1.43 trillion and the currency used is Indian rupees (INR), 46.163 per US dollars as of 2010. India’s current trade balance is a reported trade deficit of $4,982 million USD.

POLITICAL OVERVIEW

India government structure is a Federal Republic, with a bicameral parliament which operates under a Westminister-style parliamentary system consisting of a three branch system of legislature, executive and judiciary similar to the United States. There’s a division of power between the national federal government and government of individual subdivisions. The federal government has ultimate power where as the subdivisions have limited power, in which the federal government has no jurisdiction. This form of government believes in “rule by law” and not government control therefore the government’s role in business and industry is very limited for that the law influences business and industry in India. India’s relation with the United States is of really good standing. The United States does a great amount of trade with the country.

ROLE IN TEXTILE & APPAREL INDUSTRY

India is involved in both the textile and apparel industry, yet, dominates as one of the leading nations in textiles. The apparel and textile industry benefits from India’s large population of skilled and competent technical and managerial personnel. The country’s major industry is the textile industry ranking second (after China) as the world’s largest textile producer and is capable of producing a wide variety of textiles. India is the third-leading producer of cotton, accounting for 15 percent of the world’s cotton, third-largest producer of cellulosic fibers and filament yarns and fifth largest producer of polyester fibers and filament yarns. Due to the strong demand for automotive fibers, the technical textiles market in India has grown. India also supplies 8 percent of the world’s denim fabric and with accelerated growth in the Indian economy and increased consumer spending on apparel, per capita consumption of denim is expected to rise domestically. Though largely a producing country, the rise of affluence amongst the Indian population is driving demand for high quality clothing and home furnishings. China is India’s biggest competitor in the textile and apparel industry, taking the number one spot as the world’s largest textile and apparel producer.

ENVIRONMENTAL ANALYSIS

The Government of India’s policies favor small production firms which have caused the uproar of several small independent units in the spinning, weaving and processing sectors. The GOI policies gives a competitive advantage for the small firms over large mills and discourages investments into new manufacturing technology and limits large scale manufacturing. Resulting, in extremely low production costs, low levels of technology and low quality goods of low value that are less competitive in comparison to large-milled produced textiles and apparel. The textile industry in India relies heavily on domestically produced rain-fed cotton which is susceptible to weather fluctuations and contamination. The cotton ginning process contributes to defective textiles. In addition to the poor quality of domestic textiles, the imported fabrics are subject to high duties and other domestic taxes. Adding on to the struggle of promoting the growth of India’s largest industry are the high energy, capital costs, multiple taxation and low productivity that add to production costs.

Summary

Surrounded by the Indian Ocean, Arabian Sea and Bengal, India is the seventh largest country with the second largest population of 1.2 billion people. Governed by a Federal Republic the country abides by “rule of the law” and established a recent free market for the nation in 1991. As a developing nation, the textile industry is India’s largest accounting for majority of the world’s cotton and man-made fibers. The average household makes $3,400 annually and India’s economy is the 4th largest by nominal GDP with 8.20% growth.

In the future to come, India will continue on the path of rapid growth and a series of opportunities. As the country’s middle class accounts for nearly half of India’s total population and is amongst one of the fastest growing economies, more consumers have discretionary income for apparel and other purchases after meeting basic necessities. The potential of India’s increased consumption in apparel and textiles can result in increased trade and foreign investment, especially in its technical fiber sector, which are used in aerospace, marine, medical and other industrial fields.

REFERENCES

1. America archive. (2008, September 26). Retrieved from



2. India-people. (2008, October 29). Retrieved from



3. India republic of india. (n.d.). Retrieved from



4. India's textile and apparel industry: growth potential and trade and investment opportunities. (2001, March). Retrieved from



5. The world factbook. (2011, April 6). Retrieved from



6. Trading economics. (2011, March 1). Retrieved from



7. U.s department of state. (2010, July 14). Retrieved from



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