Over two lakh jobs were lost as over 2,650 textile factories remained non-operational in Tamil Nadu during 2000-2010, a recent study by the apex industry body, the Associated Chambers of Commerce and Industry of India (ASSOCHAM), has revealed.
“Of the total 17,987 textile factories across India, about 12,688 were operational and about 5,300 non-operational as of 2010-11,” said the study titled ‘State-wise assessment of textile sector & recommendations’, adding that Tamil Nadu alone has over half of the non-operating factories.
The five states of Tamil Nadu, Gujarat, Punjab, Maharashtra and Uttar Pradesh together accounted for about 88 per cent of these non-operating textile factories, highlighted the study, which was released by D S Rawat, national secretary general of ASSOCHAM.
“Tamil Nadu alone accounts for about 54 per cent of 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 an ASSOCHAM press release, quoting Rawat.
“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 certain key reasons for non-operation of textile units,” said Rawat, adding “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 Indian textile industry.”