Automation to slash jobs in textile sector

05 Jul '16

3 min read

Despite the textile sector being a large scale employer in India, a recent study has warned that automation is poised to cut jobs in the sector.

Textile and apparel industry is likely to create only 29 lakh jobs which is less than one-third of the government's target of one crore new jobs, even as the sector's market size is expected to grow by 40 per cent to $142 billion in the next five years, according to a joint study by industry body Texprocil and Ernst &Young.

“As textile and apparel industry is moving towards automation, the industry is unlikely to create more jobs along with the growth in the industry.

“The expected job creation in the domestic textile and apparel sector would be 29 lakh in the next 5 years,” a joint study said.

E&Y said the technological advancement leading to increased efficiency may reduce job opportunities. From a high of 40 workers being employed by the industry, it has now declined to 25 workers per Rs.1 crore.

The spinning, autoconers and auto-splicers divisions have replaced a job of 20 workers by 2 workers. The inter-fibre shift moving from relatively labour intensive spun yarn to synthetic filament segment also leading to lower job creation, it said.

According to a World Bank report, 69 per cent of the jobs in India are at a higher risk of being replaced by automation. The absence of Free Trade Agreements (FTAs) with the EU, Australia and Canada also causes huge job losses in the textile sector.

Texprocil Chairman R K Dalmia said this study was done to bring out the employment potential of the textile sector, especially in rural India by developing non-migratory models of manufacturing like 'hub & spoke' model being popularised in countries like Bangladesh, Cambodia and Myanmar.

Both Central and state governments need to actively promote hub and spoke model in the sector to increase supply of suitable jobs to rural women and youth, the study said. E&Y also said textile and apparel exports may post a CAGR of 9 per cent to touch $62 billion by 2021 from $40 billion in 2016. The domestic market is also expected to register CAGR of 5.2 per cent to $80 billion by 2021 from $62 billion in 2016. (SH)

Fibre2Fashion News Desk – India

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