The textile industry dwells in an exclusive position in our country. One of the most primitive to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 20% of the total exports. Being the largest foreign exchange earner, accounting for more than 5 per cent of GDP and providing direct employment to 38 million people, primarily the weaker sections, it is the second most important sector only after agriculture. The cutback seen currently is contemplated by economic analysts as 'a tip of the ice berg'. Mass of the layoffs is targeted towards daily labours that make almost 25-35% of a company’s work force, and 35 million out of the total workers in the Indian Textile Industry. Staffs at the junior, and entry levels are seeing the most terrible face of the render down. The present apparel and textile market of India needs to brace itself in this time of economic downturn. In fact t his is the time for the industrialists to think afresh, to have an idea, to have a head start and to exploit our potential. India has a strong raw material base and rich cheap labour however we have countries like China, Bangladesh, Pakistan, Turkey and Sri Lanka as our contenders. They have a periphery over us in terms of technology, lead times, volumes, quality and cheaper FOB. There is need to scrutinize the present situation and take stock of what is required to be done to keep the industry moving at good pace in these hard times. We need government programs to help curtail operational costs, improve our tariffs and duties on technology import, subsidies and money refunds, etc. Indian apparel and textile companies need to do more than increase their capacity to provide value added goods and services. Importance must be laid on the manufacture of technical textile materials and organic fabrics, home textiles, kitchen linen to name a few strategic options to stay ahead: to satisfy the customer base which always wants something new on his plate and that too speedily. The present paper take an inside tour in Global Textile Industry with special reference to India. It explores the recession and its impact on Indian Textile Industry. Vivid Endeavour has been made by the authors to jot down few relief measures framed by Govt. and recommendations as to overcome hurdles.
Cite this article:
Preeti Sodhi, Pratibha Thapa. Downturn’s Brunt: Indian Textile and Apparel Industry. Asian J. Management 2(3): July-Sept., 2011 page 126-132.
Preeti Sodhi, Pratibha Thapa. Downturn’s Brunt: Indian Textile and Apparel Industry. Asian J. Management 2(3): July-Sept., 2011 page 126-132. Available on: https://ajmjournal.com/AbstractView.aspx?PID=2011-2-3-8