Textile sector second biggest employment generator, to touch $250 billion by 2019, says Assocham

The Indian textile industry will grow by $100 billion and reach $250 billion over the next two years according to a joint study released by ASSOCHAM-Resurgent.
 
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According to the study, after agriculture the textiles and garments sector is the second biggest employment generators in India with nearly 51 million people working directly and 68 million people indirectly in 2015-16.
 
Minister of state for textiles Ajay Tamta in a statement said, “The textile & handicrafts sector is economically important from the point of low capital investment, high ratio of value addition, and high potential for export and foreign exchange earnings for the country."

“Indian textile & Handicrafts industry constitutes an important segment of the Indian economy as it is one of the largest employment generators after agriculture,” said Tamta.
 
The study further stated that the demonetisation move implemented by the government last November affected the textile sector really hard. Around 4356 workers lost their jobs due to closed of 18 cotton and man-made fibre textile units, according to official Textile Ministry data on non-SSI units.
 
Goods and Services Tax (GST) introduced by the Government from July this year is also taking a toll on the sector with textile hubs like Surat, Bhiwadi and Ichalkaranji struggling to survive due to excess capacity and low demand, the study observed.
 
The textile sector in India accounts for 10% of the country’s manufacturing production, 5% of India’s GDP, and 13% of India’s exports earnings, adds the study.

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