Textile industry suffers 10% job losses in 2 years
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The Indian textile industry, counted amongst the textile leaders of the world, has started growing since 1991. This industry largely depends upon the textile manufacturing and export. At present, India earns 27% of its foreign exchange through textile exports and Indian textile industry also contributes about 14% of the total industrial production of the country.
About 4.5 crore employees work for the textile industry. Apparel Export Promotion Council (AEPC) observed that 45 lakh people in the textile industry have lost their jobs in the last two years. It is believed that it has happened due to the global economic slowdown and problems on the domestic front. The job loss is still on, while about 7-10% people have already lost their jobs in the last two years. The problem is compounded due to economic crisis in the US and Europe as these alone account for 65 per cent of the country's textile exports.
Apparel Export Promotion Council Chairman A Sakthivel told Economic Times that the situation demands urgent attention by the government or else people will continue to lose their jobs. Sakthivel added that making matters worse, domestic banks are also not cooperating with the industry. Major issues arise because of the banking sector as they are sending out closure notices and this is hurting small units the most because of credit problem. While increase in raw material cost is another issue, the unavailability of credit at reasonable prices is a bottleneck for the industry. (Read more)
