The state of Tamil Nadu boasts of contributing at least one-third of the textile business in India and is yet lagging behind. A paradox situation as the state held the numero uno position in textiles and apparels, not only in Asia but worldwide. This position was enjoyed for several decades.
Tamil Nadu has 2032 spinning mills (out of a total of 3542 mills in India), 5.63 lakh power looms (out of 24.86 lakh in India), 1.55 lakh handlooms (out of 23.77 lakh in India), and nearly 15,000 garment units (out of one lakh units nationally) making the state, a leader in textiles and garments. The products range from sarees and dhotis to bedspreads and kitchen towels. Not only does it lead in these segments, but also in man-made cellulose fiber such as viscose accounting for almost 75 per cent of the country’s man-made cellulose yarn production. So, what exactly ails this industry?
Fall in exports
As per data released by the Ministry of Commerce & Industry, exports of cotton yarn/fabrics/made-ups, handloom products from India declined by 28.45 per cent in FY23 when compared to last year, while exports of textiles and apparel during FY23 have declined by 13.88 per cent against last year. Though there are no published data available from Tamil Nadu pertaining to its share of India’s exports, the state has contributed on an average 33 per cent and upwards towards India’s total textile industry. So, we can safely assume, the falling exports from Tamil Nadu has also contributed heavily to the negative growth of total exports.
The decline is due to…
A few reasons for the decline in textile exports are, huge existing inventory with international buyers, high cotton prices in India and also a lack of level playing field with Bangladesh and Vietnam. India suffers from high cost for labour and energy in comparison to the peer producers. Energy alone is nearly 40 per cent higher in India when compared to Bangladesh and Vietnam. Next in line is labour. Guest workers from across India migrate to textile hubs like Salem, Erode and Tiruppur. But due to covid and also certain false alerts, people returning to work has reduced. Free Trade Agreements also play a major role, impacting exports. Once proudly called the Manchester of Asia, the decline in textile industry exports have dealt a severe blow.
The silver lining
It is not a doomsday scenario for the textile industry that has in the past known to outsmart others and buck the trend in its favour. There are indeed many silver linings, provided the industry takes up the challenge. The industry has taken the step in the right direction by reinventing itself and shifting towards technical textiles. This is due to the growing demand for such products globally and the potential for higher value addition.
The Center of Excellence (CoE) for the textile industry initiated by the Indian government plans to establish world-class research and development centers. Organisations have collaborated with leading textile research institutions and technology providers to develop advanced technologies in areas such as fiber and yarn development, textile processing, finishing and quality control.
Investment in R&D…
The textile industry needs to focus on modernising operations, investing in research and development and training workforce to improve its competitiveness in the global market. At the same time, the government must provide support and incentives to the industry to tide over the challenge. Once these are up and running, it is just a matter of time for the state to regain its lost mojo and reclaim its numero uno position.
