<p>About 30 per cent of all textile factories in India were non-operational as of 2010-11, which led to a massive job loss of 42 per cent in the sector, according to a study.<br /><br /></p>.<p> Tamil Nadu, which accounted for about 54 per cent of the non-operating textile units, incurred the maximum job loss — of over 2 lakh — during the period.<br /><br />“Of the total 17,987 textile factories across India, about 12,688 factories were operational and about 5,300 non-operational as of 2010-11,” said the study titled “State-wise Assessment of Textile Sector & Recommendations”, conducted by the Associated Chambers of Commerce and Industry of India (Assocham).<br /><br />“While the total number of textile factories grew at a compounded annual growth rate (CAGR) of about 5 per cent during the decade of 2000-01 to 2010-11, the number of non-operational textile factories grew a whopping 23 per cent, and the number of textile factories under operation grew at a CAGR of a meagre 2 per cent,” said the study.<br /><br />The five states of Tamil Nadu, Gujarat, Punjab, Maharashtra and Uttar Pradesh together accounted for about 88 per cent of these non-operating factories. <br /><br />“Tamil Nadu alone accounts for about 54 per cent of the non-operating textile units, followed by Gujarat (16 per cent), Maharashtra (over 10 per cent), Punjab (over 4 per cent) and UP (over 3 per cent),” said the report.<br /><br />Gujarat registered the maximum growth, of about 39 per cent CAGR, in non-operational textile units — from over 290 factories to over 2,800 factories — during 2000-01 and 2010-11, followed by Punjab (35 per cent), Haryana (32 per cent), Himachal Pradesh (26 per cent) and Tamil Nadu (25 per cent).<br /><br />“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 key reasons for non-operation of textile units,” said the report.<br /><br />“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 the Indian textile industry,” it added.<br /><br />The share of jobs lost due to non-operation of textile factories in India has increased from over 6 per cent in 2000-01 to about 42 per cent in 2010-11. <br /><br />As per the Assocham Research Bureau, Tamil Nadu incurred the maximum loss of over 2 lakh job opportunities, followed by Gujarat, which lost over 1 lakh employment opportunities due to non-operation of textile factories.<br /></p>
<p>About 30 per cent of all textile factories in India were non-operational as of 2010-11, which led to a massive job loss of 42 per cent in the sector, according to a study.<br /><br /></p>.<p> Tamil Nadu, which accounted for about 54 per cent of the non-operating textile units, incurred the maximum job loss — of over 2 lakh — during the period.<br /><br />“Of the total 17,987 textile factories across India, about 12,688 factories were operational and about 5,300 non-operational as of 2010-11,” said the study titled “State-wise Assessment of Textile Sector & Recommendations”, conducted by the Associated Chambers of Commerce and Industry of India (Assocham).<br /><br />“While the total number of textile factories grew at a compounded annual growth rate (CAGR) of about 5 per cent during the decade of 2000-01 to 2010-11, the number of non-operational textile factories grew a whopping 23 per cent, and the number of textile factories under operation grew at a CAGR of a meagre 2 per cent,” said the study.<br /><br />The five states of Tamil Nadu, Gujarat, Punjab, Maharashtra and Uttar Pradesh together accounted for about 88 per cent of these non-operating factories. <br /><br />“Tamil Nadu alone accounts for about 54 per cent of the non-operating textile units, followed by Gujarat (16 per cent), Maharashtra (over 10 per cent), Punjab (over 4 per cent) and UP (over 3 per cent),” said the report.<br /><br />Gujarat registered the maximum growth, of about 39 per cent CAGR, in non-operational textile units — from over 290 factories to over 2,800 factories — during 2000-01 and 2010-11, followed by Punjab (35 per cent), Haryana (32 per cent), Himachal Pradesh (26 per cent) and Tamil Nadu (25 per cent).<br /><br />“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 key reasons for non-operation of textile units,” said the report.<br /><br />“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 the Indian textile industry,” it added.<br /><br />The share of jobs lost due to non-operation of textile factories in India has increased from over 6 per cent in 2000-01 to about 42 per cent in 2010-11. <br /><br />As per the Assocham Research Bureau, Tamil Nadu incurred the maximum loss of over 2 lakh job opportunities, followed by Gujarat, which lost over 1 lakh employment opportunities due to non-operation of textile factories.<br /></p>
