Telangana is the fourth largest producer of cotton in the country. Importantly,
the cotton produced is the premium long staple variety. Currently, 17 lakh
hectares is under cotton cultivation, yielding 70 lakh bales annually. However,
only 7% of the cotton produced is ginned and spun in the 35 or so textile mills
operating in the state. The rest of the cotton is shifted for processing and
spinning to other states, including Tamil Nadu, Maharashtra and Gujarat that
have large mills.
This means that the state is unable to reap the benefits due to lack of modern
processing and dyeing houses. Furthermore, inadequate water resources due
to scanty rainfall and depleting groundwater coupled with irregular power
supply are some of the other reasons.
Lack of infrastructure coupled with limited employment opportunities
compelled Telangana’s youth to look outward for opportunities in
neighbouring states in the country and outside. They seek employment in the
textile and garment sectors in Maharashtra, Gujarat, Haryana, Karnataka, the
UAE, Bangladesh, etc.
Not all is lost, as the state is seeking to improve the languishing textile and
garment industry. During the past few years there has been an improvement
in the groundwater levels, largely due to Mission Kakatiya, with many
irrigation projects like Priyadarshini Jurala Project, Koilsagar, Kalwakurthy
LIS and others. Many water bodies are created and old ones filled, resulting in
increased surface water. At the same time, better management of power
generation has made it possible to make electricity available without major
interruptions.
Telangana state and specifically Hyderabad are strategically located. To further
the advantage, the government has proposed to connect different districts to
the capital through the “regional ring road”. This project will greatly improve
connectivity, making accessibility by road and railway to the seaports on the
west and east coasts easier.
Human factor is critical to the textile and garment industry, which is highly
labour-intensive. It needs trained workforce. A sustained effort to develop
human capital is essential for the industry to survive and thrive. Many schemes
to encourage and support handlooms have been operating in the state such as
Nethannaku Cheyutha, infrastructural support and Chenetha Mithra input
subsidy scheme. These are aimed at the development of handloom clusters and
weavers.
While handlooms help weavers directly, the weaving process is slow and the
fabric output is small. As a result, handloom fabric is mostly used in traditional
wear.
The readymade garment industry needs high quality and large quantity of
fabric. For the readymade garment industry to thrive, mill-made fabric is
essential. Barring a few mills like Sanghi Spinning Mills and Sanghi Textiles,
and Suryalakshmi Mills, there are no major textile players in the state.
Encouraging investments in modern spinning and weaving mills by setting up
textile clusters will multiply employment and also improve local consumption
of high-quality cotton fibre. Textile clusters must include processing and
dyeing houses as standalone units or composite mills. These clusters can be
developed in and around districts that have sufficient water resources.
Thus the state can encourage handloom and powerloom sectors to offer greater
choice to the readymade garment industry and this approach will complete the
value chain, leading to increased employment, investment and state revenues.
It is a fact that for every Rs 1 crore invested, nearly 100 jobs are created directly
in sewing, finishing and packing; and indirectly support services such as
printing, embroidery, washing, trims and accessories. Promotion of the
manufacturing sector is vital for sustained growth and employment. Therefore,
development of the textile sector will create employment in Telangana where
nearly 30% of the population is unemployed.
Various skill development schemes have generated large pools of skilled
manpower in different districts of the state. Many of the trained youth prefer
to seek employment within their district and state. The state government needs
to address this demand, which would improve both the garment industry and
add value to the state’s economy.
The larger picture that emerges is lack of sustained campaign to promote the
industry. It is observed that there is a lack of connect between the industry and
the government. This needs to be addressed by the state government by
engaging actively with local and national trade bodies. It is time the state shifts
gears and works on a mission mode to promote garment manufacturing.
Source: The Financial Express, India Tuesday, 23 March 2021