Distress in India's Textile Sector: A Call for Action

The Distress in India's Textile Sector

The Indian textile and apparel sector, crucial for employment, is currently facing a significant crisis. With nearly 45 million jobs at stake, a study by the Textiles Committee reveals alarming trends. This article delves into the issues plaguing the sector, including declining exports, stagnant wages, and increased imports, all of which contribute to a substantial impact on employment.

Key Issues Highlighted

• Employment Impact: From 2015 to 2020, the sector experienced a loss of approximately 2.14 lakh jobs, as reported by the Textiles Committee.
• Wage Stagnation and Incentive Loss: The slowdown has resulted in flat wages and diminished incentives, prompting many workers to look for jobs elsewhere.
• Varied Sectoral Impact: The extent of distress varies across different textile categories (handloom, power loom, etc.), with no comprehensive studies yet conducted on the post-COVID-19 impact.
• Calls for Government Intervention: Factory owners and workers alike express a unanimous need for urgent governmental action to address these challenges.

Regional Accounts of Distress

Regions like Tiruppur and Palladam are witnessing severe effects of this crisis. Tiruppur, once vibrant with job opportunities, now faces a stark reduction in demand, significantly impacting workers' bonuses and job availability. Similarly, weavers in Palladam, like Velusamy, report drastic cuts in operations and bonuses, which in turn reduces employment opportunities.

Worker Exodus

In search of better opportunities and wages, many workers are migrating to other sectors or states. For instance, Sahajan from West Bengal has left the textile industry in pursuit of more favorable conditions.

Wider Impact on Allied Sectors

The ongoing crisis extends beyond textiles, affecting transporters, godown owners, and small-scale entrepreneurs, all of whom are experiencing a significant decline in earnings and business.

Challenges Ahead

• Data Scarcity: There is a notable difficulty in conducting comprehensive surveys, particularly in the unorganized sector and rural areas.
• Diverse Labour Profiles: Labour conditions differ significantly between organized and unorganized sectors, complicating the analysis.
• Global Competition: Indian exporters face increasing challenges due to lower labor costs in competing textile-exporting nations.

Conclusion

The Indian textile sector is grappling with multiple challenges, necessitating a combined effort from the government, industry stakeholders, and workers to revive this crucial sector of the Indian economy.

Frequently Asked Questions (FAQs)

Q1. What are the main issues facing the Indian textile sector?
Answer: The Indian textile sector is currently challenged by declining exports, stagnant wages, and substantial job losses, leading to a crisis in employment and economic stability.

Q2. How many jobs were lost in the textile sector between 2015 and 2020?
Answer: Approximately 2.14 lakh jobs were lost in the Indian textile sector from 2015 to 2020, according to reports by the Textiles Committee.

Q3. Why are workers migrating from the textile sector?
Answer: Workers are migrating from the textile sector in search of better job opportunities and improved wages, as many face stagnant pay and reduced bonuses.

Q4. What is the impact of COVID-19 on the textile industry?
Answer: The COVID-19 pandemic has exacerbated the distress in the textile industry, though comprehensive studies on its specific impacts are still lacking.

Q5. What is the call to action for the government regarding the textile sector?
Answer: There is a strong call for the government to intervene urgently to address the challenges facing the textile sector, including job losses and wage stagnation.

UPSC Practice MCQs

Question 1: What is one of the major challenges facing the Indian textile sector in 2023?
A) Increasing exports
B) Wage stagnation
C) Higher employment rates
D) Enhanced government support
Correct Answer: B

Question 2: Between which years did the Indian textile sector lose approximately 2.14 lakh jobs?
A) 2010-2015
B) 2015-2020
C) 2020-2023
D) 2018-2021
Correct Answer: B

Question 3: What has been a direct effect of COVID-19 on the textile sector?
A) Increased job opportunities
B) Comprehensive studies conducted
C) Heightened distress in the industry
D) Decreased global competition
Correct Answer: C

Question 4: Which region was mentioned as facing a reduction in demand for textile jobs?
A) Delhi
B) Tiruppur
C) Mumbai
D) Kolkata
Correct Answer: B

Question 5: What is a contributing factor to the migration of workers from the textile industry?
A) Higher wages in agriculture
B) Job security in textiles
C) Declining interest in textiles
D) Better opportunities elsewhere
Correct Answer: D