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Job losses grip Indian textile industry in 2011
Jan '12
Indian textile industry had to grapple with several challenges in 2011, including weak demand in both domestic and export markets, and high price of raw materials resulting in an increased cost of production.

This led to job loss for an estimated 120,000 workers during the year, out of the nearly 35 million workforce employed by the textile industry in India.

Speaking to fibre2fashion, Mr. DK Nair, Secretary General of the Confederation of Indian Textile Industry (CITI), said, “Textiles and clothing is the most labour intensive industry in our manufacturing segment. With exports declining or stagnating and domestic demand declining, there has been significant loss of jobs. However, the exact figure can be quantified only through a detailed survey.”

Analysing the reasons for job losses, he says, “All the segments in the textile value chain suffered during 2011. The roller coaster effect of raw material prices in international and domestic markets from October 2010 onwards and some Government decisions, especially with reference to cotton yarn exports, were the major factors. A decline in domestic demand and prices added to these woes.”

The CITI Secretary General foresees an improvement in job situation in the current year and says, “The entire textile value chain is currently on a come back trail, though the process is very slow at present. The recovery will hopefully pick up some speed from April 2012 onwards, when demand in global and domestic markets is expected to improve.”

“People have been postponing purchases of consumer goods because of the economic slowdown and uncertainties. But in the case of textile products, this cannot be done indefinitely since they are a basic need of the masses. With improvement in the industry, job opportunities would also grow,” he concludes.

Fibre2fashion News Desk - India

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