Textile and apparel industry is likely to create only 29 lakh jobs compared to the government’s target of one crore new jobs, even as the sector’s market size is expected to grow by 40 per cent to $142 billion in the next five years, says a report.
“As textile and apparel industry is moving towards automation, the industry is unlikely to create more jobs along with the growth in the industry.
“The expected job creation in the domestic textile and apparel sector would be 29 lakh in the next 5 years,” a joint study conducted by industry body Texprocil and EY said.
New package The Cabinet had last month approved a Rs.6,000 crore package for textiles and apparel sector with an aim to create one crore new jobs in three years and attract investments of $11 billion. E&Y report said the technological advancement leading to increased efficiency may reduce job opportunities. From a high of 40 workers being employed by the industry, it has now declined to 25 workers per Rs.1 crore.
The spinning, autoconers and auto-splicers divisions have replaced a job of 20 workers by 2 workers. The inter-fiber shift moving from relatively labour intensive spun yarn to synthetic filament segment also leading to lower job creation, it said.
As per a World Bank report, 69 per cent of the jobs in India are at a higher risk of being replaced by automation. The report pointed out that because of absence of FTAs with the EU, Australia and Canada, almost 55 lakh jobs are lost to added exports that would have been generated if the FTAs were signed.
Non-migratory models Texprocil Chairman R K Dalmia said this study was done to bring out the employment potential of the textile sector, especially in rural India by developing non-migratory models of manufacturing like ‘hub & spoke’ model being popularised in countries like Bangladesh, Cambodia and Myanmar.
Both Central and state governments need to actively promote hub and spoke model in the sector to increase supply of suitable jobs to rural women and youth, the study said. E&Y also said textile and apparel exports may post a CAGR of 9 per cent to touch $62 billion by 2021 from $40 billion in 2016. The domestic market is also expected to register CAGR of 5.2 per cent to $80 billion by 2021 from $62 billion in 2016.
Apparel demand Although, the demand for apparel from top five importers namely the U.S., the U.K., Japan, Germany and France has been stable relative to per capita incomes between 2004 and 2013, continued expansion in global demand as incomes increase in countries like Brazil, China, the Russian Federation, and South Africa is expected to help India’s exports growth, the report said.
