Chennai, Oct 28 – Thirty percent of textile factories in India shut down operations between 2000-2010 due to various reasons, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) said.
The reasons include low productivity, lack of advanced manufacturing technologies, lack of foreign investments and supply chain bottlenecks, ASSOCHAM said in its latest study titled ‘State-wise assessment of textile sector & recommendations’.
Press Trust of India (PTI) reports that out of 17,987 textile factories across India, a total of 12,688 were operating with 5,300 shut down as from 2010 to 2011.
The states of Tamil Nadu, Gujarat, Punjab, Maharashtra and Uttar Pradesh accounted for about 88 percent of non-operating textile factories.
ASSOCHAM secretary general D S Rawat said labour related challenges were among key reasons for the non-operation of textile factories in the last decade or more, resulting in loss of jobs from six percent in 2000-2001 to 42 percent in 2010-2011.
“This is a matter of concern as the textile sector, apart from creating over 1.4 million jobs, contributes about four percent to gross domestic product and 10.1 percent to total export earnings”, he said.
-Bernama
