Home / Knowledge / News / Apparel/Garments / 'Lack of FTAs costs India 55 lakh textile sector jobs'
'Lack of FTAs costs India 55 lakh textile sector jobs'
Jul '16
Courtesy: Texprocil
Courtesy: Texprocil
The absence of Free Trade Agreements (FTAs) with the EU, Australia and Canada costs India almost 55 lakh jobs in the textiles and garment sector. Additional exports would have generated these jobs if FTAs had been in place..

This is a major finding of study by Ernst & Young. The study was commissioned by the Cotton Textiles Export Promotion Council (Texprocil), which released the report titled “Textile Industry As a Vehicle of Job Creation for Inclusive Growth” in Mumbai on Monday.

The report also highlighted the size and employment generating capacity of the textile industry. According to the report, the most significant impact of the industry was that it employed many women including married women in rural areas.

It mentioned the movement into non-migratory models like the hub-and-spoke method successfully employed in Bangladesh Cambodia etc.

It underlined similarities in process in the home textile sector and the garmenting sector and pointed out that home textiles is also labour intensive and helps in the social uplift, thereby impacting poorer segments and other lower strata of society.

Texprocil Chairman R. K. Dalmia who released the report, said there were 3 objectives in undertaking the study. First, to map the top 20 textile products in demand in major importing countries in comparison to what India is supplying to these markets and thereby analyze reasons for mismatch in demand and supply, if any, and chalk out suitable corrective action to be taken up by the industry.

He also reiterated the importance of finalisation of FTAs with EU, Australia and Canada in addition to negotiation of concessional tariff with China to highlight the impact of business being lost to other competing countries owing to tariff disadvantage faced by the Indian suppliers.

Thirdly, he said that this study was done to clearly bring out the employment potential of the textile sector, especially in rural India by developing non-migratory models of manufacturing like the 'hub –and-spoke' model being popularised in countries like Bangladesh, Cambodia and Myanmar.

“This study was done by conducting primary research in various production centres and also by one-to-one meetings with manufacturers and exporters of fabric and home textiles in small, medium and large scale sectors,” he said.

Dalmia stressed that the apparel special package announced last month should be extended to home textiles sector immediately so that the two packages are implemented simultaneously. This will not only lead to substantial increase in employment in rural India but also augment export of home textile products.

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search