In-Depth Analysis | Industry And Cluster

Surat Textile Industry Struggles with Recession, Job Losses

Published: January 4, 2023
Author: TEXTILE VALUE CHAIN

The synthetic textile industry in Surat, India, which accounts for 90% of the country’s synthetic cloth production, is facing an unprecedented recession. A number of dyeing and processing units have closed, leading to job losses for thousands of workers. The industry’s production levels have declined, falling from 4.5 crore meters of cloth to just 2.5 crore meters per day.

There are several reasons for the industry’s struggles. Consumers’ priorities have changed, with an increased demand for electronics such as mobile phones and TVs, leading to a decrease in the demand for traditional clothing items such as sarees and dupattas. In addition, the popularity of leggings has replaced the demand for churidar pyjamas.

Illegal dyeing and processing houses are also contributing to the recession by operating without paying taxes and other charges, allowing them to offer lower production costs compared to legally registered units. As a result, many registered units have closed in recent months, leading to job losses for an estimated 70,000 to 1 lakh workers.

The industry needs the Technology Upgradation Fund (TUF) benefit, which ended last year, to be resumed. To increase consumer demand, the industry must also focus on producing value-added and fashionable products.

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