Growing Chinese furniture imports threaten 25 lakhs job in domestic industry
Updated: Jul 16, 2014 12:53:49pm
New Delhi, Jul 16 (KNN) Increase in imports of furniture products from China have posed a threat to jobs of over 25 lakh people in the country engaged in domestic industry.
“Growing furniture imports from China are threatening jobs of over 25 lakh people engaged in over 10.61 lakh registered and unorganized furniture factories across India,” said the Associated Chambers of Commerce and Industry of India secretary general DS Rawat.
According to a study ‘Potential of Furniture Industry in India’ conducted by the chamber, annually, around USD 447 million worth of furniture is imported into India. China accounts for 53 per cent of the total furniture imports worth over USD 736 million, thereby giving severe competition to the domestic industry.
Furniture imports into India are growing at 27 per cent annually while furniture exports from the country are growing at a growth rate of about 18 per cent, ASSOCHAM said.
Rawat said that lack of modernisation and innovative design, dearth of skilled labour, limited market access and lack of quality control are certain key issues restricting the growth of India’s furniture industry. About 20 per cent of registered furniture factories in India have been non-operational.
Non-operation of furniture manufacturing factories in India is also an issue of grave concern to the domestic industry. Out of the total 1,419 registered furniture factories in India, only 1,157 factories were under operation as of 2011-12.
“Registered furniture factories have more potential in terms of employment generation as on an average one registered furniture factory generates 40 jobs whereas an unorganized factory generates just about three jobs” it said.
More than 57,000 jobs are being generated by registered furniture factories across the country. Maharashtra is top producer generating maximum of over 15,100 jobs followed by Tamil Nadu (9,318), Rajasthan (5,053), Karnataka (4,998) and Andhra Pradesh (4,087).
The top five states account for about 68 per cent of total employment generated by registered furniture sector in India.
According to the study by the ASSOCHAM Economic Research Bureau (AERB), the private final consumption expenditure on furniture in India has been growing at a compounded annual growth rate (CAGR) of about 17 per cent (during 2004-05 and 2012-13).
Revival in real estate and hospitality sectors combined with rising disposable incomes will further drive the furniture industry’s growth in the country, it added. (KNN/ST)
“Growing furniture imports from China are threatening jobs of over 25 lakh people engaged in over 10.61 lakh registered and unorganized furniture factories across India,” said the Associated Chambers of Commerce and Industry of India secretary general DS Rawat.
According to a study ‘Potential of Furniture Industry in India’ conducted by the chamber, annually, around USD 447 million worth of furniture is imported into India. China accounts for 53 per cent of the total furniture imports worth over USD 736 million, thereby giving severe competition to the domestic industry.
Furniture imports into India are growing at 27 per cent annually while furniture exports from the country are growing at a growth rate of about 18 per cent, ASSOCHAM said.
Rawat said that lack of modernisation and innovative design, dearth of skilled labour, limited market access and lack of quality control are certain key issues restricting the growth of India’s furniture industry. About 20 per cent of registered furniture factories in India have been non-operational.
Non-operation of furniture manufacturing factories in India is also an issue of grave concern to the domestic industry. Out of the total 1,419 registered furniture factories in India, only 1,157 factories were under operation as of 2011-12.
“Registered furniture factories have more potential in terms of employment generation as on an average one registered furniture factory generates 40 jobs whereas an unorganized factory generates just about three jobs” it said.
More than 57,000 jobs are being generated by registered furniture factories across the country. Maharashtra is top producer generating maximum of over 15,100 jobs followed by Tamil Nadu (9,318), Rajasthan (5,053), Karnataka (4,998) and Andhra Pradesh (4,087).
The top five states account for about 68 per cent of total employment generated by registered furniture sector in India.
According to the study by the ASSOCHAM Economic Research Bureau (AERB), the private final consumption expenditure on furniture in India has been growing at a compounded annual growth rate (CAGR) of about 17 per cent (during 2004-05 and 2012-13).
Revival in real estate and hospitality sectors combined with rising disposable incomes will further drive the furniture industry’s growth in the country, it added. (KNN/ST)
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