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2. Threat of Substitute products or services (for the Indian textile industry): LOW to
MODERATE
a. Non woven fabrics
b. Threat to LDC nations according to WTO (Indonesia, Bangladesh, Philippines,
Vietnam)
i. Other countries and their competitive costs (cheap labor and raw
materials)
- 1980’s – export starts with limited deregulation (threat of new entrant increased
gradually) & GVC – increased the competition in the industry
- ATC - The World Trade Organization (WTO) Agreement on Textiles and Clothing (the
Agreement) provided for the phased liberalization and elimination over the
transition period of quotas on textiles and apparel imported from WTO member
countries.