Innovation Strategies in Indian Textile Sector – Evidence from Surat Textile Cluster

Though India has comparative advantage in labour intensive sector like textile, India’s performance in this sector is not too impressive on the export front. In this context, this paper argues that lack of innovation culture could be one of the principal reasons for India’s poor performance. This hypothesis is tested by conducing primary survey in one of the more dynamic textile cluster in Northern India namely, Surat and adjoining areas. Our findings do indicate lack of product as well as organisational innovation culture in this region, which may be a serious bottleneck in competitive export market. We do find that firms score well in respect of marketing innovation which probably suggests that competitive pressure has increased due to the globalization of the economy. Firms are also found to be keen in respect of process innovation to reduce cost in the aftermath of increased pace of competition in the sector.