Global Sourcing India

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1.Production capacity of India for manufacturing cotton t-shirts 1.1. Natural resources of cotton and component parts in India Cotton is a very important commodity, traded in many countries all over the world. Major part (70%) of global production of cotton comes from 4 main countries. Largest producer is Chine (27%) followed by India (22%), USA (13%) and Pakistan (8%). Production of cotton in India has increased since 2008 and according to USDA estimated India’s production will rise in the near future even more.
Graph 1
India provides sufficient capacity for manufacturing cotton t-shirts and casual tops, question is here what is the quality of cotton India’s farmers produce. About 90% of cotton produce by India is BT cotton2.. This kind of cotton comes from genetically modified seeds. India also uses pesticides and fertilizers during growing process, which can have environmental and health impact. (WWF-India, 2012 [online]).

In order to produce cotton t-shirt or casual top we need components such as one-by-one inch rib knits or two-by-two rib knits, various threads, digital prints or embroidery and others. We can find major part of these and other components available in India.

Strengths
Second largest producer of cotton in the world
Availability of other components
Weaknesses
Use of modified seeds of cotton
Use of pesticides and fertilizers

1.2. Companies manufacturing cotton and cost of production in India Textile industry is one of the leading industries in India and even on a global scale is one of the largest. Several years ago this industry was rather unorganized, which has changed since economic liberalization of India economy in 1991. This decision opened up economy of India and contributed to the fact that India is being considered as trustworthy country when it comes to business.

Picture 1
India textile industry contributes nearly 14% of the total industrial production of the...
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