In the last few months there has been an increase in the number of textile factories closing in Haryana. This has contributed to a number of problems such as loss of jobs, etc. One of the major problems that have plagued these units is the generally lower level of productivity, as well as the relative absence of investment from outside the country. There have also been several labour issues especially in the years between 2000-01 and 2010-11. ASSOCHAM, one of the leading industry bodies in the state, has said that in the period between 2000-01 and 2010-11 the number of closed textile factories has gone up to 175 from 11.
This has meant that there has been a compounded annual growth rate in terms of closing of factories at the rate of 32%. In the said period 14,300 people have lost their jobs in this industry. In 2000-01 this number had been estimated at 675. At the start of 2000-01 there were 455 textile factories in Haryana and it grew to 630 by the end of 2010-11. However, due to the rampant closures only 11 of the newly opened units in the interim have remained active. In 2000-01 27,238 people were employed in the textile factories and by the completion of the 2010-11 fiscal the number had gone up to 37,228.
There have been a number of factors that have impeded the textile industry of Haryana. Apart from the ones that have already been mentioned above there have been problems like lack of manufacturing technologies that are at par with the rest of the world. There have also been a bevy of bottlenecks especially with regards to the supply chain, which is such an integral part of the entire industry. Experts have also pointed out some other factors that have played a crucial role in the present condition that Haryana's textile industry finds itself in.
They have cited that there are not sufficient economies of scale. Plus, the companies have also faced a lot of challenges in terms of the labour force. The textile industry in this North Indian state is primarily divided in nature. This has presented its own challenges as well. Owing to lack of sufficient experience, and perhaps knowledge, these companies have been unable to present themselves properly as brands that could have ultimately generated the sales that could have helped them stay afloat in the market for a longer period of time.
ASSOCHAM has also stated that nowadays the textile mills in Haryana are facing a greater amount of competition in India from companies that may be working in other parts of the country as well as from ones that are operating outside India as such. This has also contributed in a significant way to their present predicament. The textile industry is also finance-intensive. To just get started with the very best facilities is a significant financial challenge for many and this huge expenditure right at the start often derails even the best companies at times.
This is where the government can play a crucial role. It can help the emerging companies with start-up loans at easy rates, terms and conditions. The state administration should also look to employ a team of researchers and experts in order to provide these companies the information that helps them compete on level terms with others of their ilk in India as well as outside it.