- As a labour-intensive sector, hit by setbacks during the pandemic, market analysts have predicted potential job loss of one crore in the textile industry
- It is anticipated that retail conglomerates will boost textile demand in India which is home to 24 per cent of the world’s spindles
- PLI and the Make In India initiative are competent in offering great support to the textile sector
The COVID19 pandemic has created chaos in various sectors in the most unprecedented ways and the textile manufacturing sector was not spared either. It is a dark phase that the textile industry is going through with the factories shut, shipments stranded and payments delayed. The Clothing and Manufacturing Association has estimated that the sector will be witnessing a potential job loss of around one crore.
However, this is not the first time that the sector is going through a rough phase. The North India Textile Mills Association had issued an advertisement in 2019 informing about the worst recession in the textile spinning industry the exports of cotton yarn plummeted to 50% in April 2019. Financial challenges aggravated by technological advancements had plummeted even before the sector, rendering the artisans and their skills outdated. The artisans who were once famous across the world for their weaving expertise in producing dexterous yarn are today a significant concern for the industry.
Sparse Textile Growth has Affected Fashion Industry
![](https://themachinemaker.com/new/wp-content/uploads/2022/08/Indroneel-Mukherjee.jpg)
The fashion industry which is heavily dependent on the operation of textile and spinning was adversely hit due to the pandemic. The designers have since shifted to simple, essential aesthetics and are fervently struggling to compensate the artisans and craftspersons who are the pillars of their business.
Indroneel Mukherjee, a celebrated Fashion Designer from Kolkata, comments on the trials and turbulences for designers to spin new clothes during the pandemic.” All the factories were shut all over the world. Since I design western wear, I am largely dependent on imported fabrics. Work came to a grinding halt.” He says that the imported fabrics have stopped coming and he has to use all the old fabrics which were already there to make clothes.
Government Schemes Optimistic in Boosting Revenue
India’s textiles sector is one of the oldest industries in the Indian economy dating back to several centuries. The industry with various hand-spun and hand-woven textiles sectors is at one end of the spectrum with the capital-intensive sophisticated mills’ sector on the other.
The textile industry with its formidable presence in the national economy has been contributing to about 14 per cent of manufacturing value-addition and accounts for around one-third of our gross export earnings. Besides contributing to the county’s GDP, the industry is the second largest employment generator after agriculture.
To make India the manufacturing monolith of the 21st century, PM Narendra Modi had launched the Make In India campaign That seeks to nurture innovation, skill development, intellect, and investment in 25 sectors. The textile industry has also been included in the campaign. The scheme puts in place the logistics and systems to address the queries of potential investors in a timely manner.
Home to 24 per cent of the world’s spindles, and 8 per cent of the world’s rotors, India is the world’s second-largest producer of cotton and silk, and also the second-largest textile manufacturer. India enjoys a comparative advantage of possessing skilled manpower and low-cost production over other major textile producers which makes the country a preferred destination for investment.
![](https://themachinemaker.com/new/wp-content/uploads/2022/08/Ashok-%20Kumar-Juneja.jpg)
However, the industry being a labour-intensive one, witnessed setbacks during the pandemic. “Due to the lockdown everything came to standstill, the textile industry was adversely affected for about one and a half years,” said Ashok Kumar Juneja, President, TheTextile Association (India). A veteran in this Industry Juneja opines that since the industry is a labour-oriented sector, the factor of migrant labourers became significant and for the first few months it was difficult for any business to kick start post-COVID without them returning.
“Textile being a vast industry and it covers a huge spectrum from fibre to fashion, spinning has picked up exceptionally well especially during June and July,” added Juneja. He also mentioned that the Government schemes like PLI (Public Investment Scheme) and the Make In India initiative are certainly great support for the textile sector.
India is home to 24 per cent of the world’s spindles, and 8 per cent of the world’s rotors, India is the world’s second-largest producer of cotton and silk, and also the second-largest textile manufacturer. Besides this, India enjoys a comparative advantage when it comes to skilled manpower and cost of production over other major textile producers, which makes the country a preferred destination for investment.
However for a few textile manufacturers, business continued running smoothly without major glitches.“ Business is running as usual even during absolute lockdown at full circle”, says Soumodip Ghoshal, Director of Deeps Textiles Private Limited. The objective of Deeps Texstyles is to be at the forefront of sustainable innovation and development of the Textile Industry offering products that help preserve the health of our planet and its inhabitants.
“We took care of all our employees period, our focus is always on sustainability and our clients are well aware of the ground realities so we got a lot of support from them during the pandemic,” added Ghoshal. Talking about the government schemes, he said that his company has tried to avail few. “We tried to avail schemes but somehow it didn’t work out due to technical problems.
It is anticipated that the increasing penetration of organized retail in the coming years along with favourable demographics and rising income levels will drive textile demand. It is also to be noted that the policies instituted by the Government will give the sector a push.