Home / Knowledge / News / Textiles / Textile industry facing labour shortage, ASSOCHAM
Textile industry facing labour shortage, ASSOCHAM
27
Jun '11
Industry body ASSOCHAM voiced concern over the textile and clothing industry facing an immense challenge in mobilising additional workers to fulfill production requirements as many of them are moving to other well-paying jobs – either in other fast-growing sectors or back home in rural areas.

The crisis-like situation comes at a time when India is its losing competitive edge in export markets due to rising input costs amid stiff competition from neighbouring nations like Bangladesh, Sri Lanka, Vietnam, Cambodia, Indonesia and China.

That too when major importers of textiles and garments – the European Union and the United States – are yet to recover from the global economic recession and potential buyers are not willing to pay even five cents a piece more, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The chamber conducted an on-line and phone survey last week with heads of 100 textile firms in Ludhiana, Amritsar, Surat, Ahmedabad and Kolkata, and the findings call for immediate steps to be taken. Nearly 45 per cent of them said their units are utilising only 50 to 60 per cent of production capacity due to labour shortage.

About 30 per cent of them said their margins are shrinking as they are not able to meet sale targets. Nearly 15 per cent of them said they are contemplating plans to shift focus on brand building while 10 per cent of respondents said they may soon move production units to interior areas where workers are available at low wages.

The current workforce in Indian textile and clothing industry is about 35 million with an equal number employed in allied industries. This should move up to 47 million by 2015, including five million skilled workers and two million technical and other personnel, if growth projections are to be met.

Most workers earning about Rs 7,000 a month are of migratory nature. They move from the agricultural sector to cities after the sowing season for half of the year and get back to villages when the harvest season starts, said ASSOCHAM secretary general D.S. Rawat.

But the government's successful social sector schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is discouraging labour migration from rural to urban areas. The MGNREGA assures them 100 days of wage-employment guarantee in a financial year.

“There is a rampant shortage of workers in all segments of textile value chain that begins from cotton crop and leads to branding and retailing,” said Mr Rawat. “The industry needs to pay higher wages, provide health insurance and ensure that factories comply with internationally acceptable standards.”

With hectic construction activities in infrastructure projects and real estate sector across the country, many workers have moved away from the textile industry due to low wages and rising cost of living in cities.

“New job opportunities have come up lately in urban areas with emergence of retail chains, call centres, courier companies and security agencies, throwing up fresh opportunities for millions of un-skilled, semi-skilled and skilled workers,” said Mr Rawat.

Must ReadView All

Textiles | On 24th Jan 2017

Textile industry demands relaxation of laws from Budget

The upcoming Union Budget 2017-18 should focus on relaxing certain...

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search