3 million employment in organised T&C industry, says MoT! AR counters data

by Apparel Resources News-Desk

12-July-2019  |  3 mins read

Apparel IndustryIs less than 10 per cent of Indian textile and apparel industry’s total workforce organised? Yes, if the Government data is to be believed.

The Ministry of Textiles has claimed that as per the latest available Annual Survey of Industries, employment in the textiles and wearing apparels was 26.97 lakh in 2016-17, 26.48 lakh in 2015-16 and 25.27 lakh in 2014-15.

Union Minister of Textiles, Smriti Irani shared this information in a written reply in the Rajya Sabha (Upper House).

On the other hand, the annual report (2017-18) of the Ministry of Textiles says that with over 45 million people employed directly, the textile industry is one of the largest sources of employment generation in the country.

The Annual Survey of Industries (ASI) is the principal source of Industrial Statistics in India. The data includes evaluation of the principal characteristics of factories, employees, capital, net and gross value, benefits and funds, etc. over a period of time on an annual basis.

When Apparel Resources approached the Government officials, the latter told that this is an official figure and as per the annual survey belongs to ‘organised sector only’. However, it is hard to believe this official figure, as there are several large companies in Indian textile and apparel industry, which have huge workforce with majority of them on payroll.

We explored the annual survey and found that apart from textile and wearing apparels, only one segment related to textile industry is mentioned, which is Cotton ginning, cleaning and bailing; seed processing for propagation and this segment offered jobs to 75,268 people. (See box at the bottom for segment-wise detail)

For example, Shahi Exports, India’s number one apparel exporter, officially says on its website that it has over 1,00,000 employees.

As per Apparel Resources’ Top 100 exporters survey in 2015, there were around 4,00,000 workforce in top 100 apparel export houses only (including few vertically integrated as well as companies doing export and domestic market).

Given below is the list of few companies (Group) that have major workforce (based on their website, annual reports and market input)

Shahi Exports 1,00,000
Arvind Ltd. 42,000
Gokaldas Export 25,000
Vardhman 28,000
Orient Craft 26,000
RSWM Ltd. 25,000
Welspun India 21,000
Trident 12,000
Aditya Birla Group 10,000+ (in textile and apparel segment only)

There are at least 50 companies having 10,000 people, some of which are AKR Textiles, Richa Group, Eastman Exports, SCM, KPR Mills, JJ Mills, etc. Similarly, there are at least 200 companies, dedicated to apparel export only, who have a workforce of at least 4,000 people or even more.

Principal Characteristics by Major Industry Groups in ASI 2016-17 (Textile, Apparel)   (Value figures in Rs. lakh & others in numbers)

Description Factories Fixed Capital Productive Capital Invested Capital Workers Total Persons Engaged Wages to Workers
Textiles

 

17,714 15,574,407 18,829,677 22,375,358 1,332,482 1,560,102 1,689,376
Wearing apparel 10,048 2,799,418 4,223,640 5,273,527 980,180 1,137,021 1,150,980
Cotton ginning, cleaning bailing; seed processing for propagation 3,525 522,476 1,761,779 1,784,819 54,606 75,268 50,325

Source: Annual Survey of Industries, Ministry of Statistics and Programme Implementation

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