The research reported in this thesis was on “Factors affecting the growth of the Textile Sector”. The purpose of research was to study the micro-environmental factors affecting the growth of the textile sector so that the effect of the macro-environmental factors that plague the textile sector can be countered. The secondary data was collected by consultation of literature in the libraries and the internet and also from the material printed by different organizations of Pakistan. The findings suggested that among other variables that affect the Growth of Textile Sector such as number of looms, Raw Cotton production and Raw Cotton consumption, the variables Yarn Production and Number of Spindles have a significant impact on the growth of the textile sector.

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CHAPTER 1

INTRODUCTION

This thesis identifies the micro environmental factors that have a major impact on the Growth of the Textile Industry. These factors include all those elements in the immediate area of operations of the industry that affect its performance such as production, consumption and supply of raw materials. The textile sector or textile industry is defined as the industries involved in designing, manufacturing, distribution and use of clothing. The textile sector is technically considered to be growing or flourishing; if the textile mills are producing cloth at an increasing rate or the contribution of the textile sector to the GDP of the country is increasing (i.e. production of cotton cloth is increasing in the sector). Hence, the relationship linking the growth of the textile sector with the production levels of the cotton cloth in the industry. The GDP of a country is defined as “The Total Value of Goods and Services Produced in an Economy”, so if the quantity of cotton cloth production is increasing or decreasing in Pakistan that directly goes to show that that the share of economic contribution of the textile sector to the GDP of Pakistan is growing or declining respectively. There are varieties of variables both macro-environmental and micro-environmental that affect the performance or growth of the textile industry such as the political, social, legal, economic and environmental issues. The textile sector or any other sector for that matter can only flourish or grow if the policies of the government support the operations of the industry on both the micro-environmental level and the macro-environmental level.