Issues Faced by Indian SMEs in Textile Industry in Varanasi

Abstract

The purpose of this study is to explore the issues faced by the Indian small scale textile manufacturers and to understand why they are lagging behind in textile sector. How lack of technology and dumping of cheap textiles from China is affecting the small scale textile manufacturers in India? The results of the survey indicated that the respondents differed significantly on perceptions of industry opportunities and problems they are facing because of obsolete technologies used by small scale firms. Some of the respondents said technology is the biggest problem while some said it’s dumping from China. Significant differences were also found between the industry department and the small scale textile manufacturers. Government officials have stated that China is not posing a threat to domestic industries whereas the findings of the report stated exactly the opposite scenario. Data was analysed and discussed in relation to their implications for improving technology, competitiveness of firms, technology transfer via collaborations and joint-ventures, government initiatives towards the development of the small scale textile manufacturers.