The textile sector in India has been witnessing a slowdown in the rate of growth in the last 2-3 months. As compared to a growth rate of 14 per cent in May 2006, the sector grew by a mere 6.9 per cent this May. Similarly, textile products (including apparels) grew by just 7.13 per cent and 9.9 per cent in April and May 2007, compared to 12.57 per cent and 18 per cent in April and May last year. The growth rate of textile products has been facing a slowdown for the last couple of years, given that these products grew by 11.2 per cent in 2006-07 compared to 16.4 per cent and 19.2 per cent in 2005-06 and 2004-05 respectively. The Federation of Indian Chambers of Commerce and Industry (FICCI) has laid down four requirements that need to be fulfilled to achieve 16 per cent growth in the domestic textile sector. The four-point package includes ensuring adequate availability of fibre, attracting FDI, concentrating on skill development and tapping emerging areas, like technical textiles.There is an urgent need to increase the domestic cotton yield, which continues to lag behind the yield in competing countries like China and Pakistan. Further, steps need to be taken to address the acute manpower crunch in the sector, which is likely to arise if the industry does grow at the targeted rate of 16 per cent in the next 4-5 years. According to FICCI, there is a serious problem in terms of availability of manpower in the sector, especially at the shop floor and supervisory level.
