Textile industry in India Essay Example | Topics and Well Written Essays - 2000 words

Textile industry in India - Essay Example In this case, the paper has defined the Indian and Vietnamese textile industry’s macro-economic environment through a an economic analysis in order to illuminate the key factors that can be utilized to maximize the efficiency and competitiveness of the industry. Up to the point where the Indian economy was liberalized, the textile industry in the country was essentially disorganized. However, the industry has now risen to being the second biggest textile industry in the world; second only to China. In this way, textiles account for 38% of total exports in the country; therefore making textiles an industry of extreme importance upon which a great deal of India’s economic strength relies upon (Singleton, 2007, p. 22). Comparatively, the textile industry in Vietnam is one of its largest industries; as well as a key economic contributor. Textile exports from Vietnam, despite the economic difficulties facing the country, have continued to improve with present goals aimed at becoming the third largest textile exporter after China and India. The factors discussed in this paper affecting the Indian and Vietnamese textile industries such as political factors are vital since lack of stability would adversely affect it. Because the economies of Vietnam and India are dependent largely on the manufacture and export of textiles, which accounts for 29% and 27% of foreign exchange respectively, social and economic factors are also important as factors of influence (Nash, 2007, p. 21). Analysis of Macro environment in India & Vietnam Firstly, with respect to the GDP of these systems, the researcher can readily note that Vietnam represented a 2011 GDP of approximately 129 billion USD whereas India represented a GDP for the same period of approximately 1.85 trillion USD. Although the overall size of the Indian economy dwarfs that of Vietnam, this cannot be understood in and of itself as a defining factor or differential between the two. Ultimately, the extreme diffe rential in GDP can be understood as a function of the overall population differential that is extant between the two nations. Whereas India represents a population of well over 1.24 billion, Vietnam only boasts of a total population of around 88 million individuals. As a function of this differential, is it easy for the researcher to understand why the overall GDP differential is as expansive as it has been represented in the figures displayed. Comparatively, Vietnam has experienced a rapid rise in per capita income over the past decade. Whereas just a few brief years ago Vietnam struggled with massive amounts of poverty with many of its citizens earning less than 150 dollars per year, the rapid rise in the growth of Vietnam’s middle class and a high level of industrialization and trade has meant that the average per capita income has risen to nearly 1,130 per year by 2010. This rapid rise in the average per capita income in Vietnam can be attributed to a host of factors; how ever, for purposes of this analysis, it would not be unreasonable to assert that the rapid growth in the textile industry in Vietnam has been one of the main contributing factors to spurring economic growth and benefitting the overall quality of life for many