With the mounting pressures of recession, thousands of jobs are being slashed, and more are likely to follow. The global turmoil is sending shivers and even the countries with developed economies are getting affected.
The Confederation of the Indian Textile Industry reports that 7 lakh people have already lost their jobs, and the count is expected to grow further. The retrenchments seen currently are contemplated by economic analysts as 'a tip of the ice berg'.
Textile merchants state that they are not confident about their businesses in the near future. Sales figures of the current year are lesser then the corresponding months of the previous year. Exporters are facing the worst situation.
Manufacturers who are able to produce quality goods and sell them at competitive prices alone can sustain in the market. Mr Sampat Kasirajan, MD, Hydra Consulting feels that, “feels that the economic impact may continue right through the next year and year after with 2009 experiencing some very intense setbacks.
In that respect, the retrenchment will continue with labor intensive, export dependent industry suffering the most. It is not permanent but when the economy begins to be pick up the mosaic may look different”
With layoffs of the existing employees, and a freeze in the hiring of new staffs, job security becomes a meaningless word. If the global economy does not pick up, more pink slips could be expected in the forthcoming months.
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Fibre2fashion News Desk - India
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