Assocham: 30% of Indian textile mills remain closed
According to the Associated Chambers of Commerce and Industry of India (Assocham), approximately 30% of Indian textile mills remained closed between 2000 and 2010, leading to significant job losses.
The total number of textile units in India increased by approximately 5% during the ten-year period; however, the number of non-operational textile mills increased by 23%.
“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,” said Asscoham secretary general DS Rawat.
The vast majority of non-operational mills can be found in Gujarat, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh.
“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,” Mr Rawat concluded.
Assocham figures show that the Indian textile sector currently generates more than 1.4 million jobs. The sector contributes approximately 4% to the country’s gross domestic product and 10% to its total export earnings.
