Automation to hit textile sector jobs

According to a recently released report, the textile industry in the country is unlikely to create more jobs along with the growth in the industry.

What the report says?

Textile and apparel industry in India is likely to create only 29 lakh jobs compared to the government’s target of one crore new jobs, even as the sector’s market size is expected to grow by 40% to $142 billion in the next five years.

Why?

This is mainly because of automation. The technological advancement leading to increased efficiency may reduce job opportunities. The spinning, autoconers and auto-splicers divisions have replaced a job of 20 workers by 2 workers. The inter-fiber shift, moving from relatively labour intensive spun yarn to synthetic filament segment, are also leading to lower job creation.

Concerns:

• As per a World Bank report, 69% of the jobs in India are at a higher risk of being replaced by automation.
• Also, according to the report, absence of FTAs with the EU, Australia and Canada, almost 55 lakh jobs are lost to added exports that would have been generated if the FTAs were signed.

Way ahead:

• The government recently approved a Rs.6,000 crore package for textiles and apparel sector with an aim to create one crore new jobs in three years and attract investments of $11 billion.
• Along with this, both Central and state governments need to actively promote hub and spoke model in the sector to increase supply of suitable jobs to rural women and youth.