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Powerloom Clusters of India

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Powerloom Clusters of India Powerloom Clusters of India West specially the Britain and later US had enjoyed supremacy in world textile and clothing trade for over two centuries but now the shift is taking place from the West (US and EU countries) to the East particularly China, India and Pakistan. This change has been necessitated in view of the implementation of free-trade policies in the world under WTO from 1st January, 2005. In the last eight years since 2000, cotton consumption in US, EU and Japan has been decreasing fast while it has been increasing very fast in China and South Asian countries like India, Pakistan and Bangladesh. Presently, China, India, Pakistan and Bangladesh share about 50 percent of US imports of cloth and textiles. China has lion share of over 35 percent while India and Pakistan share is small but better than other countries. India and Pakistan have great potential as both produce large cotton crops and can exploit their resources to increase their share in textile exports to US. In 2007, Pakistan was the second largest exporter of clothing and textiles to US. Small countries like Vietnam, Thailand and Sri Lanka are increasing their exports to US. This is the trend of increase of total US imports from south Asian countries which clearly shows shift of finished goods from the East to the West. Exports of textile and clothing from China, India, Pakistan and other small Asian countries is increasing substantially. Pakistan's exports of textile goods and cloth to EU was US $3.965 billions in 2004-05, US $4.108 billions in 2005-06, US $4.443 billions in 2006-07. China's economy is second to US in the world and in next 20-25 years, China may occupy top position surpassing US. The present economic and financial conditions in US indicate that its economy may face bankruptcy if the situation deteriorated further. Among EU countries, Germany, Italy and UK are economically and financially stronger. In next quarter century, China would lead the world in trade and finance with India, Pakistan and Bangladesh as its strong allies. Different types and varieties of fabrics are used world wide in different applications such as woven fabrics, knitted fabrics, non-woven fabrics and technical textile products. Recent studies have highlighted that fabric weaving alone expends around 28 million tones of fibre every year. It is predicted that global production will grow by 25% between 2002 and 2012; to reach more than 35 million tones and Asia is one of the key regions in future growth. The top ten major importers of powerloom fabrics and made-ups of 100% cotton are USA, UK, Germany, Italy, Bangladesh, France, Greece, UAE, Sri Lanka, and Spain. History of weaving looms can be traced back to 17th century. The first power loom was invented by Edmund Cartwright in 1785. The East India Company established its office in Calcutta in 1601 and started trading in local as well as in exports specially to Great Britain. When the British established their companies, India had developed its textiles sectors and was also exporting cloth to China, Afthanistan, Central Asian states. Trade of cloth started between Britain and India and it continued to grow till middle of 18th. Century, when the Britain spinning and ginning machines were invented which boosted textile industry. The British discouraged promotion of cloth in India and Indian raw cotton was exported to UK for processing. Only in 1854, the first spinning mill of India was established in Bombay by a Parsi entrepreneur and the first jute mill was established in Calcutta by one English in 1885 and thereafter series of textile mills were established in Bolmbay and in other parts of India. Originally Power looms were with shuttle, and they were very slow. But as the industrial demands for faster production accelerate, faster looms without shuttle came in use in early part of 20th century. As developments and innovations take place, various types of looms were developed for faster production. Today, Air-jet, Water-jet, Rapier and other computer operated looms are used to maximize production of special materials. The decentralized powerloom sector is the lifeline of Indian Textile Industry. India is having approximately 19.42 lakhs of powerlooms weaving almost 19,000 million meters of fabric, and provides employment to more than 7 million workers over 430,000 units. Although the growth of power loom industry was slow initially; it has started gearing up now. Number of shuttle less looms has augmented to almost 50,000 and from this about 35,000 looms are working in the decentralized sector. The sector accounts for 63% of the total cloth production in the country. The fibre and yarn-specific configuration of the textile industry includes almost all types of textile fibres, natural fibres such as cotton, jute, silk and wool, synthetic, man-made fibres such as polyester, viscose, nylon, acrylic and polypropylene. Indian textiles, handlooms and handicrafts are exported to more than 100 countries, with the US being the largest buyer. Readymade garments (RMG) are the largest export segment, accounting for almost 41 per cent of total textile exports. RMG exports from India were worth US$ 9.06 billion in 2007-08. RMG exports from India were worth US$ 8.18 billion during April-February 2008-09, as compared to US$ 6.89 billion in the corresponding period of 2007-08 As per the latest figures available with the Ministry of Textiles, India exported textiles worth US$ 17.62 billion during April-February 2008-09, a 7.08 per cent increase over the corresponding period last year. Most of the Power loom units are concentrated in semi urban, or rural area. Among all, Maharashtra has highest number of powerlooms amounting to approximately 8 lakhs of powerloom, Tamilnadu is second with 5 lakh units, and Gujarat ranks third with 4to4.5 lakh worth of power looms. No. of Powerlooms set-up in the last six years in India 2,500,000 2,000,000 1,500,000 1,000,000 Numbers Powerlooms in 500,000 2,082,895 1,692,737 1,943,892 1,836,856 1,990,308 1,902,953 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Year No. of Powerlooms 30% of the export market share is contributed directly by the Indian textile industry. Indian textile industry is also the largest industry when it comes to employment that generates jobs not just within but also in various support industries like agriculture. As per a recent survey the textile industry is going to contribute 12 million new jobs in India by 2010 itself. Employment in Handloom/Powerloom in Lakh April 09 April-May 09 April-June 09 0.23 0.34 0.49 Average monthly percentage change in employment during April – June over March 09 (in %) 3.26 2.38 2.29 Change in employment of direct and contract workers during April – June over March 09 in lakh. April – June 09 Direct 0.57 Indirect 0.08 Change in employment of exporting units over March 09 in lakh. April 09 April – May 09 April – June 09 0.25 0.35 0.57 In handloom/powerloom sectors export units 0.57 lakh jobs have been added during the period April – June over March 09. (Source http://labourbureau.nic.in) Table 1: Powerloom Clusters in India S.No. State Name of the Cluster & No. of Employment Turnover Exports Category units Person/family* Cr./Annum Cr./Annum Andhra Nagari, Horizontal 24000 500 Pradesh Guntur Warangal, Horizontal <1000 <1000 0-10 Sirsilla 20000 15000 * 50-60 Gujarat Kalol, Horizontal 100- 1000-10000 0-10 M 500 Surat 1000- >10000 100-1000 M 10000 Gandhinagar Chhatral Haryana Bhiwani <100 1000-10000 100-1000 L Panipat 5702 34892 405.7 Karnataka Belgaum 10-100 L Bangalore, Horizontal 100-1000 Gadag Betgeri, 100- <1000 Horizontal 500 Kerala Ernakulam M Mallappuram, M Horizontal Palakkad M Faizlure M Madhya Burhanpur, Horizontal 9890 Pradesh Jabalpur, Horizontal Ujjain Maharashtra Ichalkaranji, 244 Horizontal Malegaon, Horizontal 7500 100000 4900 Madhavnagar, Horizontal Orissa Dhenkanal Ganjam, Horizontal 1000-10000 0-10 M Balasore, Horizontal 1000-10000 0-10 M Punjab Amritsar , Horizontal 200 1500 400 50-60 Rajasthan Kishangarh, 400 5555 Horizontal Beawar 60 950 24 Jaipur 25 300-400 50 Bhilwara, Horizontal 159 45-50 Tamil Nadu Surampatti, Erode 160 8000 Karur, Horizontal Bhavani 160 Uttar Mau, Vertical 40000 240000 700 Pradesh Banda , Vertical Kanpur 300 3000 300 40 Gorakhpur, Vertical Jhansi Varanasi , Vertical Meerat 27500 looms Bihar Bhagalpur 1200 3000 800 West Bengal Nadia Ranaghat 500- 1000-10000 10-100 10000 The major challenges which are now facing by textile industry are :- Stiff competition from developing countries; especially China Pricing pressure Locational disadvantage International labour and environmental laws Table 2: Opportunities and Challenges Powerloom Clusters Opportunity Beawar Bhavani Bhagalpur Kanpur Ichalkaranji 1 Scope of Domestic Potential for high Very good export High market Growing market market growth potential for home scope for the domestic and furnishing value Technical international added made ups in Textile markets. the selected Products overseas countries 2 Technology can be Up-gradation Product Scope for Untapped improved & upgraded technologies diversification like diversification export that of home of product markets furnishing value added made up 3 Scope of product Improvement of Very large market Higher capacity Huge scope diversification quality and for branded silk for product utilization decrease in products as the diversification rejection present high growth of retail sale in India 4 Scope of domestic Product and High labour cost in Schemes / Scope for market quality developed benefits of sub-
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