The Textile Industry in India

Less than 3 percent of the 12.8 million population joining the workforce every year have the opportunity for any kind of vocational or skill training. In this context, the "National Skill Deficit" is a reality and the Apparel Sector is one of the worst hit with acute skill shortage affecting the export units eroding fast India's competitiveness in the global apparel geography

The Indian Textile & Clothing (T&C) industry is one of the largest and critical industries in the Indian economy in terms of foreign exchange earnings and employment generation. The industry contributes 4% to the country's GDP and 14% of the country's industrial production. The apparel industry is the largest employing sector next to the agriculture. The apparel exports contributed around US$ 11 billion to India's foreign exchange earnings in 2009-10.

The Indian T&C industry is also the largest employment generating industry in the manufacturing sector with direct employment of over 35 million people.  It is also estimated that about 45 million are indirectly employed in the entire textile value chain. Apparel being at the end of value chain before the consumer, the value edition is the highest with US dollar 2 of 1 kg cotton becoming 20 dollar US when converted as garments.  Thus, the need of the hour is to integrate the Textile & Apparel sector i.e. the fibre to fashion value chain in a garment-led growth strategy and the skill transferability needs to put in place through the value chain. This requires a comprehensive and pragmatic vocational and skill training strategy in different textile-apparel clusters to fill the knowledge & training gaps so that the industry can move up the value chain with the help of skilled workforce. Elucidating the case of textiles and apparel sector, it can be seen that for the upstream activities of spinning, weaving, knitting and processing, the projected employment requirements are 5.5 lakhs, 1.57 lakhs, 0.92 lakhs and 1.76 lakhs respectively for the period co-terminus with the 11th Five Year Plan. The downstream requirement for apparel sector is estimated to be in the range of 4 million to 7 million in the next 3 years or so. A CITI report has estimated the current work force in the textile and apparel industry to be around 35 million and has reckoned the same to move up to 47 million by 2015 including 5 million skilled workers and 2 million technical and other personnel. A CRISIL study had indicated a requirement of 12 million work force by 2010 with 5 million in the core technology production activities and the remaining 7 million in support and auxiliary services. With such opportunities projected for the textiles & apparel sector, how do we train the displaced agricultural labourers, the youth and women to seek gainful employment in the textile-apparel sector which is the largest employment generator after agriculture?  It would seem that the apparel sector has not been factored in sufficiently by the policy makers or HRD ministry in various schemes for education, training and linked employment generation. Ideally, textile and apparel sector in a country like India should have got a prominent place as it has the capacity to generate massive employment, both in urban and rural centres and to offer employment locally, which will reduce the migration to metros.  Nearly 20 years ago in Sri Lanka, the then Government provided attractive incentives of tax holiday for the unit as well as the mother company for setting up units in rural areas which have helped in shaping apparel-led rural economies.  Both the export and the domestic retail industries for fashion and apparel could have and certainly will, benefit from a clearer focus of skill development activities.