New Delhi, Oct 28 (KNN) About 30 per cent of all textile factories in India were non-operational as of 2010-11, leading to 42 per cent job loss in the sector, said a study.

Tamil Nadu, which accounted for about 54 per cent of the non-operating textile units, incurred the maximum job loss of over 2 lakh during the period, followed by Gujarat, which lost over 1 lakh employment opportunities due to non-operation of textile factories.

The share of jobs lost due to non-operation of textile factories in India has increased from over 6 per cent in 2000-01 to about 42 per cent in 2010-11. 

“Of the total 17,987 textile factories across India, about 12,688 factories were operational and about 5,300 non-operational as of 2010-11,” said the study titled “State-wise Assessment of Textile Sector and Recommendations”, conducted by the Associated Chambers of Commerce and Industry of India (Assocham).

“While the total number of textile factories grew at a compounded annual growth rate (CAGR) of about 5 per cent during the decade of 2000-01 to 2010-11, the number of non-operational textile factories grew a whopping 23 per cent, and the number of textile factories under operation grew at a CAGR of a meagre 2 per cent,” said the study.

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, it said.
Gujarat registered the maximum growth, of about 39 per cent CAGR, in non-operational textile units from over 290 factories to over 2,800 factories during 2000-01 and 2010-11, followed by Punjab (35 per cent), Haryana (32 per cent), Himachal Pradesh (26 per cent) and Tamil Nadu (25 per cent).

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).
 
“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 ASSOCHAM Secretary General D S Rawat.
 
“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,” he added. (KNN/SD)