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Textile Sector Distress in India: Wages and Worker Exodus



  Dec 18, 2023

Textile Sector Distress in India: Wages and Worker Exodus



Narrative Overview:

The Indian textile and apparel sector, a significant employment generator with nearly 45 million jobs, is facing a severe crisis. A study by the Textiles Committee highlights the sector's distress, marked by declining exports, stagnant wages, increased imports, and a substantial impact on employment.

Key Issues Highlighted:

1. Employment Impact: Between 2015 and 2020, the sector lost approximately 2.14 lakh jobs, as reported by the Textiles Committee.

2. Wage Stagnation and Incentive Loss: The slowdown has led to flat wages and reduced incentives, prompting many workers to seek employment elsewhere.

3. Varied Sectoral Impact: The degree of distress varies across different types of textiles (handloom, power loom, etc.), with no comprehensive study yet on the post-COVID-19 impact.

4. Calls for Government Intervention: Both factory owners and workers express a unanimous need for urgent governmental action.

Regional Accounts of Distress:

Tiruppur: Once bustling with job advertisements, now faces a stark reduction in demand, impacting workers' bonuses and job availability.

Palladam: Weavers like Velusamy face a drastic cut in operations and bonuses, leading to reduced employment opportunities.

Worker Exodus: Workers are migrating to other sectors or states in search of better opportunities and wages, as in the case of Sahajan from West Bengal.

Wider Impact on Allied Sectors:

The crisis extends to transporters, godown owners, and small-scale entrepreneurs, all witnessing a significant decline in earnings and business.

Challenges Ahead:

Data Scarcity: Difficulty in conducting comprehensive surveys, especially in the unorganized sector and rural areas.

Diverse Labour Profiles: Differences in labor conditions between the organized and unorganized sectors.

Global Competition: Indian exporters face challenges due to lower labor costs in other textile-exporting nations.

Conclusion:

The Indian textile sector is grappling with multiple challenges, necessitating a combined effort from the government, industry stakeholders, and workers to revive this crucial sector of the Indian economy.


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