Effects of Economic Meltdown on Jobs in Textile Segment

• Indian textile industry occupies a prominent and unique place in our country. In both the nation’s economy and global textile economy, it has established a strong and significant presence. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings.

• Indian textile industry accounts for about 20% of the total industrial production of the country, about 18% of the employment in the industrial sector, about 20% of the nation’s overall export earnings, about 9% of the total excise collections and about 4% of the GDP.

• During the eleventh plan, the textile segment has been recognized as a thrust area for the nation’s economic growth due to its potential to boost productivity, employment and investment. The total employment in the textile sector including allied industries is projected to increase to 105.39 million persons in 2011-12.

• The global economic meltdown has been showing significant effects in the textile segment. As a result of this, the expected growth in textile segment appears to be difficult. Due to increasing financial crisis in both domestic and international markets, textile industry is expected to deteriorate further. While there are fears of half-a-million more job losses, exports from the sector are likely to take a hit of about Rs 15,000 crore, according to industry estimates.

• People in the textile industry are worried that the slowdown would not improve in the near future, making 2009 a gloomy year for the Textile and apparel industries. A further meltdown will be a huge blow on the economy of the country. The Indian government assured that the scenario would improve considerably by monsoon this year. It has been taking necessary steps in this direction. It has also put forward a special economic package to curb the deterioration.