Challenges faced

The Surat textile industry has gone through quite a few setbacks as well.

Most of the traders have a fixed group of clients, with whom they trade. Most of the business is done on a credit basis. According to the Federation of Surat Textile Traders� Association, the industry suffered a loss of Rs. 200 crores in the year 2004-05 on account of frauds by customers. The industry suffered a huge loss in the floods of 2006 as well. Around 40000 textile shops were damaged in Surat in these floods and the total loss was reported to be at Rs.10 crore per day. However, the city has always been quick to rise from these setbacks.

The rising cost of power and labour, which consequently raises the cost of production is another issue faced by the Surat textile industry. Most of the labour employed in this industry is unskilled and comes from various areas such as Bihar, Orissa, Maharashtra and Uttar Pradesh. The industry faces shortage of skilled labour. Moreover, severe labour crunch is felt by the industry during April-June when the laborers travel to their hometowns.

The government has set up institutes to train the laborers, but these institutes are not very well equipped. The lack of an international airport in Surat contributes to the low demand for its products in the international market.

It is also necessary to update the technology used in the industry as well as the infrastructure.

Conclusion

In spite of certain drawbacks, the city occupies a major position in the production of manmade fabrics. Around 65% of India�s manmade fabric production is done in Surat. The city expects a growth rate of 15-20% in manmade fabric demand in the near future. Hence, the future of the Surat textile industry does look bright.

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