Indian textile industry is to witness a drastic change since the quantitative restrictions on textiles and clothing are removed. Textile industry in India has an approximate annual growth rate of 9 to 10 percent and is estimated to reach $115 million USD by 2012. A survey concludes that textile industries will generate 12.02 million direct and 5.36 million indirect jobs by 2012.
The state of Rajasthan has a deep rooted tradition for textiles. 69 out of 892 spinning mills in India are located in Bhilwara district, Rajasthan which consists of Spinning, Weaving, Dyeing, Processing and Printing units. Majority of these industries are affianced in the process of manufacturing synthetic blended yarn which accounts to 40 percent of the total yarn manufactured all over India. It has an investment of $ 53 million USD with an employment of 59,383 people in the textile industries. Bhilwara has emerged as Indias largest manufacturer of fabrics. Also known as Textile City of India, it is a famous industrial town in Rajasthan. It encompasses 50 percent of the total polyester fabrics and suitings manufactured in India. The state Government of Rajasthan has proposed to allot 300 acres of land in Bhilwara and about 100 apparel companies have applied for land to start their industry over here.
Reasons for Textile concentration:
- Apparel companies are more labor intensive. Availability of abundant and cheap labor in Rajasthan as compared with other places also attracts the much labor intensive textile and apparel companies towards this city. Wages in Haryana and Delhi are around Rs. 3,500 for a month and are comparatively higher than in Rajasthan.
- Soaring real estate costs in Delhi and Gurgaon has forced the textile industries to opt for Bhilwara, which is located not very far away from these places.
- Various levels of vertical integration are present in a textile industry and thus require a variety of manufacturing processes and management requirements. Bhilwara possess cutting edge industrial solutions with special emphasis on textile ancillary.
- The Rajasthan State Industrial Development & Investment Corporation has come up with schemes that would attract textile industries towards the state. It is promoting two garment zones in Bhilwara, the first zone already allotted with 80 acres of land, and the second one is estimated to have 1000 acres with allotments following soon. This is also a reason for the focus of textile industries towards Bhilwara. The Governments special scheme of offering 50 per cent exemption on sales tax is also an appealing factor for the textile focus.
The city of Bhilwara has itself earned a prominent place in the industrial map of India. Textile industries add value and generate considerable amount of revenue to a countrys economy. With proper actions and focus, Bhilwara would be a pivot in the textile industrial sector.
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