Pest Analysis of Retail Apprel Industry
PEST Analysis of Indian Market for the Apparel Industry
1. Political Factors:
The proliferation of international trade and liberalization of the global trade regime has dawned in India with the implementation of several programs by the Government of India (termed as GOI from now onwards in the report) to help the textile and apparel industry adjust to the new trade environment. In 2000, the GOI unveiled its National Textile Policy (NTP) 2000, aimed at enhancing the competitiveness of the textile and apparel industry and expanding India’s share of world textile and apparel exports to 10 per cent by 2010 from the current 3 per cent level. Some of these measures taken by the GOI were substantial to facilitate the Brand Accessory Industry too - label and packaging industry, for brand value addition. Under the NTP 2000, the GOI removed ready-made apparel articles from the list of products reserved for the SSI sector. As a result, foreign firms may now invest up to 100 per cent in the apparel sector without any export obligation. This policy equally holds strong for the Branding Sector – Label & Tag industries. The GOI grants automatic approval within 2 weeks of all proposals involving foreign equity up to 51 per cent in the manufacture of textile products or related branding items in the composite mills. Foreign investment up to 50, 51, 74 and 100 per cent in priority industries/activities, is eligible for automatic approval by the Reserve Bank of India (RBI).
Automatic approval is also available for holding equity up to 51 per cent in trading companies engaged primarily in export activities. In addition, 100 per cent Export Oriented Units (EOUs) and units set up in designated Export Processing Zones (EPZs) are eligible for automatic approval provided they satisfy stipulated criteria. Foreign technology agreements are also eligible for automatic approvals within certain limits.
Tax Policies India has a well-developed tax structure, with the authority
1. Political Factors:
The proliferation of international trade and liberalization of the global trade regime has dawned in India with the implementation of several programs by the Government of India (termed as GOI from now onwards in the report) to help the textile and apparel industry adjust to the new trade environment. In 2000, the GOI unveiled its National Textile Policy (NTP) 2000, aimed at enhancing the competitiveness of the textile and apparel industry and expanding India’s share of world textile and apparel exports to 10 per cent by 2010 from the current 3 per cent level. Some of these measures taken by the GOI were substantial to facilitate the Brand Accessory Industry too - label and packaging industry, for brand value addition. Under the NTP 2000, the GOI removed ready-made apparel articles from the list of products reserved for the SSI sector. As a result, foreign firms may now invest up to 100 per cent in the apparel sector without any export obligation. This policy equally holds strong for the Branding Sector – Label & Tag industries. The GOI grants automatic approval within 2 weeks of all proposals involving foreign equity up to 51 per cent in the manufacture of textile products or related branding items in the composite mills. Foreign investment up to 50, 51, 74 and 100 per cent in priority industries/activities, is eligible for automatic approval by the Reserve Bank of India (RBI).
Automatic approval is also available for holding equity up to 51 per cent in trading companies engaged primarily in export activities. In addition, 100 per cent Export Oriented Units (EOUs) and units set up in designated Export Processing Zones (EPZs) are eligible for automatic approval provided they satisfy stipulated criteria. Foreign technology agreements are also eligible for automatic approvals within certain limits.
Tax Policies India has a well-developed tax structure, with the authority