October 3, 2022
  • October 3, 2022

Indian textile industry and job creation

By on January 21, 2022 0

The textile industry in India is the only industry that provides huge employment for skilled and unskilled labor. This industry is essential to strengthen the country’s core business. At the same time, it makes a great contribution to job creation, second only to India’s retail sector, which accounts for more than 10% of the country’s GDP and around 8% of total employment.

The textile sector in India directly employs over 4.5 crores of people and another 6 crores of people in related sectors including women and the rural population. The Indian textile industry is an important industry locally and globally. It has enormous importance in the global context and is considered the second largest industry in the production of fibers, yarns and fabrics. India ranks fifth in the production of synthetic fibers.

The Modified Technology Upgrading Fund (ATUFS) scheme launched by the Government of India is implemented for the textile industry with an expenditure of ₹17,822 crore during the period 2016-2022 to attract investment of 1 lakh ₹ crore. This is expected to generate 35.62 lakh employment opportunities in the textile sector by 2022.

In addition to this scheme, with the latest implementation of the PLI scheme and its target to attract investment of ₹19,000 crore for the production of high-value synthetic fibers (MMFs), fabrics, garments and technical textiles , the industry can contribute positively to the ecosystem.

Some of the major growth drivers in the industry have been foreign investment, growth in the retail sector, private sector involvement and international demand for Indian cotton. The increase in the FDI limit in multi-brand retailing is a blessing for the textile industry and it has brought more players and more options for consumers. As we see international brands gain a foothold in the domestic market, outsourcing is set to increase exponentially. Population growth has been another key factor contributing to employment growth in the sector.

According to the latest survey by the Ministry of Labor on the overall picture of employment scenario in India, apart from jobs related to the tech industry, job vacancies in nine key sectors including manufacturing, IT and financial services, grew at an average annual rate of 3.42% since 2014. Estimates following a survey of 10,900 establishments showed that these sectors, including manufacturing, technology, financial services and commerce, employed 30.8 million people at the end of June 2021, up 29% from 23.7 million at the end of March 2014, when the survey was last conducted.

Latest government initiatives like Skill India Mission, Skill Development Initiative, etc. will consolidate employment decisions and benefit the development of the global economy.

In a nutshell, strategic R&D, better product standards, collaborations and joint ventures, standards set by regulatory bodies, and government support for workplace safety initiatives will enable manufacturers to deliver high quality products. . With advancements in technology, India’s total textile exports in the financial year 2015-2016 amounted to $40 billion. The industry was expected to reach $223 billion by 2021. But due to the current pandemic situation, the demand for yarns and fabrics remained subdued throughout the first half of FY 2020-21. The industry expects that with incomes normal throughout the textile value chain and with various programs such as PLI by the government announced recently, a return and huge employment is expected by the second half of the 2021-22 financial year.

The growing market holds huge potential to attract more local manufacturers and self-help groups into the manufacturing workforce, paving the way for a self-reliant economy, aligned with the Indian government’s vision.