Gujarat, a prominent hub for India’s textile industry, is grappling with a growing labour shortage, compounding existing challenges from the global economic slowdown. This scarcity of skilled and unskilled workers threatens the state’s textile production and export competitiveness.
The situation is particularly acute for spinning mills and other textile manufacturing units. Dharti Spinning Mills, for example, reports operating with only 30% of its required workforce, hindering its ability to fulfil yarn orders. This mirrors a broader trend across Gujarat’s industrial landscape, including ceramics and engineering, where reliance on migrant labour is significant. Industry estimates suggest that at least 60% of Gujarat’s industrial workforce originates from other Indian states.
Several factors contribute to this textile sector’s labour drain. Increased industrial development in other states is drawing migrant workers back home, creating a “reverse migration” trend. Seasonal factors, such as the monsoon season, also impact labour availability as workers return to agricultural activities. The textile industry also faces competition from workers from other sectors, including gems and jewellery, which are themselves experiencing workforce fluctuations due to market conditions.
The labour shortage coincides with other economic pressures. Rising raw material costs, inflationary pressures, and declining demand are already impacting Gujarat’s businesses. The recent revision of minimum wages, while intended to improve worker conditions, adds further strain on textile manufacturers’ operating costs. This increase in labour costs is particularly concerning for Gujarat’s textile exporters, who compete with countries like Bangladesh and Vietnam, where labour is significantly cheaper.
The Gujarat state government is aware of the situation and is reportedly gathering data on future labour supply and demand to inform policy responses. However, the textile industry faces an immediate challenge: how to attract and retain workers in a competitive labour market. Some businesses are considering offering higher wages, but this comes at a cost that many are struggling to absorb.
The labour crisis poses a significant threat to Gujarat’s textile industry, a vital component of the state’s economy. Without a concerted effort to address the workforce shortage, the industry’s competitiveness and future growth are at risk. The situation highlights the need for innovative human resources strategies, skills development initiatives, and potentially, greater automation within the textile sector to mitigate the impact of labour scarcity.
