Home / Knowledge / News / Textiles / 30% of Indian textile mills shut in 2000-10: ASSOCHAM
30% of Indian textile mills shut in 2000-10: ASSOCHAM
28
Oct '13
About 30 percent of total textile mills in India remained non-operational in 2000-10 leading to huge job losses, a recent study conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has found.
 
The study titled “State-wise assessment of textile sector & recommendations”, says, “Of the total 17,987 textile factories across India, about 12,688 factories were operational and about 5,300 were non-operational as of 2010-11,” according to an ASSOCHAM press release.
 
The total number of textile units in India grew at a compounded annual growth rate (CAGR) of about 5 percent during the decade of 2000-01 and 2010-11, while the non-operational textile factories grew at a whopping 23 percent and the textile factories under operation grew at a CAGR of a meager two percent, Mr. DS Rawat, national secretary general of ASSOCHAM, said while releasing the findings of the study.
 
According to the findings, the five states of Tamil Nadu, Gujarat, Maharashtra, Punjab and Uttar Pradesh together accounted for about 88 percent of the non-operating textile units, with Tamil Nadu alone accounting for about 54 percent, followed by Gujarat, Maharashtra, Punjab and Uttar Pradesh with 16 percent, 10 percent, 4 percent and 3 percent, respectively.
 
Gujarat registered maximum growth of about 39 per cent CAGR in non-operational textile units i.e. from over 290 factories to over 2,800 factories during 2000-01 and 2010-11, followed by Punjab, Haryana, Himachal Pradesh and Tamil Nadu with 35 percent, 32 percent, 26 percent and 25 percent, respectively.
 
“Low productivity, lack of advanced manufacturing technologies, lack of foreign investments, supply chain bottlenecks, lack of economies of scale, labour related challenges, issues arising due to a fragmented industry and weak brand positioning are certain key reasons for non-operation of textile units,” said Mr. Rawat.
 
Increased domestic competition together with competition from global players and high initial investment cost for state-of-the-art production facilities are other emerging challenges being faced by Indian textile industry, he added.
 
Analyzing the impact of non-operation of textile units on employment, Mr. Rawat said the share of jobs lost due to non-operation of textile factories in India has increased from over 6 percent in 2000-01 to about 42 percent in 2010-11.
 
The organized textile sector in India employs over 1.4 million people and contributes about 4 percent to the nation’s Gross Domestic Product (GDP) and 10.1 percent to the total exports earnings, according to ASSOCHAM.
 
 


Must ReadView All

Chinese e-commerce firm JD.com invests $44 mn in Tiki.vn

Apparel/Garments | On 24th Nov 2017

Chinese e-commerce firm JD.com invests $44 mn in Tiki.vn

Chinese e-commerce firm JD.com has invested $44 million in Tiki.vn, a ...

Asian firms to see steady earnings growth in 2018: Moody's

Textiles | On 24th Nov 2017

Asian firms to see steady earnings growth in 2018: Moody's

Steady economic expansion and corporate earnings growth will underpin ...

Vietnamese footwear exporters need to prepare for EV-FTA

Apparel/Garments | On 24th Nov 2017

Vietnamese footwear exporters need to prepare for EV-FTA

Vietnamese leather and footwear exporters must comply with the...

Interviews View All

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Paolo Ocleppo
Sandvik Hyperion

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Robert Brunner
Devereux

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

November 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search