Accelerating Human Resource Performance

for Sustainable Growth: The Indian Textiles and Clothing Industry

Pawan Kumar Chugan1 and Meenakshi Rawani2

1Professor, Institute of Management, Nirma University, Ahmedabad
2Research Scholar, Institute of Management, Nirma University, Ahmedabad
E-mail: 1pkchugan@imnu.ac.in
Abstract—The Indian textile and clothing industry is the second largest employer after agriculture. Cessation
of quota-based curbs on January 1, 2005, offers the industry an opportunity to expand textiles and garments
exports and generate substantial employment. However, the industry is going through a declining phase and
textile mills have been losing their markets to other cheaper sources.
In such a scenario, a number of steps are needed not only take this industry out of the woods, but also to
maintain its sustainable growth. Amongst the various steps, accelerating human resource performance is one
of the most powerful agents that can take the industry to its new heights. In this context, this paper first gives a
brief overview of the Indian textiles and clothing sector in the backdrop of global slowdown and WTO’s
agreement on textiles and clothing (ATC) and also describes the Indian scenario with respect to its size,
investments and exports in post quota regime. This is followed by describing the employment scenario in this
sector which inter-alia also states the manpower requirements and highlights the role of human resources for
increasing competitiveness of Indian textiles sector. To accelerate the performance of human resources, the
paper has further attempted to prescribe sector-wise requirements of education and training, infrastructural
facilities, public private partnership thrust, cooperation between science/technical institutes and industry and
various initiatives taken by the government and finally lists out the skill performance gaps that need to be filled
up to take Indian textiles sector to new heights with sustainable growth.
Keywords: Textiles and Clothing, Human Resource Performance, Agreement on Textiles and Clothing
(ATC), Global Slowdown, Multi-fibre Arrangement (MFA)

INTRODUCTION
The Indian textiles and clothing industry is one of the oldest industries of the country
and is one of the largest segments of the Indian economy. It is the second largest in the
world, second only to China. It is an independent industry from the basic requirement of
raw materials to the final product, with significant value-addition at every stage of
processing. The industry in India has vast potential for creation of employment
opportunities in the agricultural, industrial, organised and decentralized sectors and
rural and urban areas, particularly for women and the underprivileged population.
The industry contributes 14% to industrial production and 4 % to the GDP of India.
The share of the textiles and apparel industry in Indian exports is around 15 per cent.
Thus, it can be considered as an economic engine for the nation (Technopak, 2011).
The end of textiles import quota regime offers India a huge opportunity to expand
textiles and garment exports and thus generate substantial employment while tough
competition from developing countries. Further sections of this paper discusses the
Indian textile industry, its employment potential, the role of human resources in textile
sector and ways of enhancing its performance, specifically in the post-quota regime with
the termination of the Agreement of Textiles and Clothing (ATC) in 2005.

Electronic copy available at: http://ssrn.com/abstract=2002657

142 ‹ Enhancing Enterprise Competitiveness through Human Capital and Operations Management

OVERVIEW OF THE INDIAN TEXTILE AND CLOTHING SECTOR

Indian textile and apparel industry plays a major role in the economy. It is one of the
earliest industries to come into existence. It is the country's second-largest exporter
after IT. Also, it is the second largest provider of employment after agriculture, having
on rolls close to 85 million — 35 million directly in textiles and 50 million in allied
1
activities. This labour intensive sector has a strength of 15,000 companies. It is also
estimated that the industry would generate 12 million new jobs by the year 2010. It has
several segments: Readymade Garments, Cotton Textiles including Handlooms, Man-
made Textiles, Silk Textiles, Woollen Textiles, Handicrafts, Coir, and Jute. In 1985, for the
first time the importance of the textile sector was recognized and a separate policy
statement was announced for development of the textile sector. In 2000, the National
Textile Policy was announced with following objectives:
• To provide cloth of acceptable quality at reasonable prices for the vast majority
of the population.
• To increasingly contribute to the provision of sustainable employment and the
economic growth of the nation
• To compete with confidence for an increasing share of the global market.
The policy also aimed at achieving the target of textile and apparel exports of US $
2
50 billion by 2010 of which the share of garments would be US $ 25 billion.
India has a natural competitive advantage in terms of a strong and large multi-fibre
base, abundant cheap skilled labour and presence across the entire value chain of the
industry ranging from raw materials, spinning, weaving, and made-ups to
manufacturers of garments (Figure 1). It is perhaps the only industry in the Indian
industrial arena which is self-reliant and complete in value chain. India’s textile industry
comprises mostly small-scale, non-integrated spinning, weaving, and finishing and
apparel-making enterprises. The textile industry has a significant presence in the Indian
economy as well as in the international textile economy. In the world textile economy
India’s textile sector is well positioned (Table 1). The Indian textile industry contributes
12% to the world production of textile fibres and yarns (including jute). It is the largest
producer of jute, second largest producer of silk and cellulosic fibre / yarn, third largest
3
producer of cotton, and fifth largest producer of synthetic fibres/yarns.

1Ministry of Textiles, 2007, Annual Report, 2006/07, accessed on June 28, 2010 from, www.texmin.nic.in
2Textileindustry in India, http://www.iloveindia.com/economy-of-india/textile-industry.html , accessed on
August 8, 2010.
3Indian Textile Industry: an overview, accessed from Official Indian Textile Statistics 2005-06,

http://www.txcindia.com, accessed on June 28, 2010.

Electronic copy available at: http://ssrn.com/abstract=2002657

 Accelerating Human Resource Performance for Sustainable Growth: The Indian ‹ 143

FIG. 1: TEXTILE INDUSTRY VALUE CHAIN

No doubt, India has its own competitive advantage and even has an edge over China
in terms of comparative low cost of labour, raw materials as well as the low wastages
but these are at least partially offset by the high cost of power and capital on the one
side and the lack of innovative initiatives and product diversification on the other. Thus,
if the advantages of labour cost and raw material, which provide a foundation to the
Indian textiles and clothing sector to be competitive, are complemented with other
measures such as the improvement in technology, scale operations, integrations, quality
improvement and product diversification (such as in technical textiles in a big way), it is
definitely going to be a winning formula for success and sustainable growth (Chugan,
2007). This is substantiated by the fact that the close on the heels of finalizing the
National Fibre Policy, the government was informed by the sub-group on speciality
fibres that while the technical textile industry is likely to grow at 6-8% per annum till
2020 without any policy interventions, government interventions could push it to 12-15
% per annum till 2020 (Mehta, 2010).
144 ‹ Enhancing Enterprise Competitiveness through Human Capital and Operations Management

TABLE 1

Source: WTO, ITMF, ICAC, JMDC, ASFI and Fibre Organon, compiled in the ‘Compendium of international
textile statistics’ (Retrieved on August 20, 2010 from www.txcindia.com)

GLOBAL SLOWDOWN AND INDIAN TEXTILE INDUSTRY

Presently, Indian textiles are losing their market to other cheaper sourcing alternatives
such as Vietnam, Bangladesh and Pakistan. Despite a weakening currency this sector is
facing a tough time owing to lower global consumption, high input cost, and cheaper
 Accelerating Human Resource Performance for Sustainable Growth: The Indian ‹ 145

sourcing alternatives In addition, the government has imposed rigid labour laws on
large factories with more than 100 workers. To avoid these restrictions, most Indian
textile and apparel companies run small factories, where it is easier to lay off workers.
Thus, the Industry is dominated by several small scale players across the value chain.
But they lack the scale and efficiency when compared with their rivals in China, where a
textile plant can easily employ more than 50,000 workers. With the slowdown in
discretionary spending at home and weak retail sales in global destinations, the falling
currency is not going to be of much help to India's textile exporters for a while
(Laxman, 2007).
In order to retain existing orders as also to sustain with global recession Indian
companies are trimming staff and working days/ hours for cost cutting and keeping the
future of millions at stake. According to Banerji (2009), medium and small companies in
particular have been compelled to devise ways to combat the slowdown. Apart from
cutting down the workforce, they are reducing working hours and the number of
working days. Citing examples of units located in Noida and Okhla near Delhi, Banerji
states that some of the units have reduced working days from 6 to 4 and cut working
shifts from 6 to 3.
The recent European crisis and US slowdown have further added to the woes of the
industry, particularly to units which are exposed to these markets. As per the latest
report (Mehta, 2011) the apparel cluster in Noida that houses 1000 units is almost lull
4
since last two months. In Tirupur , India’s biggest knitwear cluster, orders from
American buyers like H&M, GAP, Next and Wal-Mart are down by 35% while those from
Europe have shrunk by 55%. Quoting the case of units located in Tirupur it is reported
(Ghosal, 2011) that because of slowdown in demand from Europe and USA, the units
that were having less work on six days a week, are now run only four –five days a week.
They have taken a decision to freeze recruitment. On the one side demand has not been
encouraging owing to economic crises in Europe and stagnant orders from the U.S. On
the other side, exports to new markets such as Russia and Japan are also not picking up.
If this situation continues, many units may even face closure.
Thus, to prop up the textile industry, it is essential for Indian companies to improve
efficiency and quality of output and recapture the losing market share. It is also
necessary to look at newer markets and newer opportunities in India and abroad. The
success of this strategy will depend upon several key factors such as introducing more
IT applications, paying more emphasis to brand building, paying more emphasis not
only to EU and USA but also to other markets, paying more attention to innovations not
only for traditional / general textiles items but also to sophisticated technical textiles,
paying more attention to economies of scale and above all to improving the overall
productivity by leveraging technology with simultaneous involvement of trained and
skilled manpower. In this paper attempts have been made to address various issues

4Tirupuris a small town in South India having 3000 garment manufacturing units that export finished
garments valued around Rs. 12,000 crore annually and employ nearly 4 lakh workers.
146 ‹ Enhancing Enterprise Competitiveness through Human Capital and Operations Management

pertaining to human resources as this is one of the most important factors responsible
for accelerating the growth and development of the Indian textiles and clothing sector.

AGREEMENT ON TEXTILES AND CLOTHING (ATC)

The Uruguay Round (UR) participants had decided to bring textiles within the scope of
GATT / WTO rules by gradually dismantling the Multi-Fibre Arrangements (MFA) of
1974. This arrangement limited imports into countries whose national production
sectors could be weakened by a flood of foreign products (Joshi et al., 2004). Thus, from
1974 until the end of UR, trade in textiles and clothing was governed by MFA under the
framework of various bilateral agreements between the importing and exporting
countries. After, UR, this sector has been integrated fully with WTO and ATC has been
phased out. This was spread over a 10 year period. The major part of integration,
however, took place only at the end of the transitional period, on January 1, 2005
(Chugan, 2005).
For more than four decades, developing countries have sought elimination of trade
barriers raised by developed countries. After the Uruguay Round of negotiations country
by country quotas under the so-called Multi-fibre Arrangements (MFA) have been
dismantled from January 1, 2005. Now, like other products, textiles and clothing items
are to be traded under normal WTO rules. Therefore, fabric and garment
manufacturers/traders world over have started responding to massive global
competition dictated by the new quota-free regime (Chugan, 2006).

INDIAN INDUSTRY AND POST-QUOTA SCENARIO

World trade in textiles and clothing has been freed from the restrictive quota regime on
January 1, 2005. With the dismantling of quota regime, the Indian textile and clothing
industry has to improve its efficiency and productivity to meet the emerging global
competition. In this direction following development are noteworthy:
Expansion of the Industry Size
There has been an expansion of the industry in the post-quota period; the industry has
expanded from US$ 37 billion in 2004-5 to US$ 47 billion in 2005-6. In this period, the
domestic market increased from US$ 23 billion to US$ 30 billion, whereas exports
increased from around US$ 14 billion to US$ 17 billion (Kant, 2007).
Investment Scenario
Investment flows into the textile sector could be assessed on the basis of following
schemes/ policies of the government (FICCI 2008):
• Technology Upgradation Funds Scheme (TUFS)
• Capital Subsidy Scheme for Powerloom Units
• Technology Mission on Cotton (TMC)
• Industrial Entrepreneurship Memorandum (IEM) and Letter of Intent (LOI) /
Direct Industrial Licence (DIL)
 Accelerating Human Resource Performance for Sustainable Growth: The Indian ‹ 147

• Apparel Parks, Textile Centre Infrastructure Development Scheme (TCDIS) and

Scheme for Integrated Textile Parks (SITP)
• Foreign Direct Investment (FDI).
Export Scenario
Textile exports recorded growth of 8.7% in 2003-4 and 3.9% in 2004-5 (Kant, 2007).
India’s textile exports were valued at $16.4 billion in 2005-6 and have been increasing
since then. Textile exports were $17.4 billion in 2006-7. Exports increased further to
$19 billion in 2007-8. However, as a result of weak global demand textile exports have
started feeling the pinch. The growth rate of exports of the textile industry was 21% in
2005-6 and fell significantly in the following year to almost 6%. The growth rate then
picked up slightly and was 10% in 2007-8 (FICCI, 2008).
The weakening of demand from major destinations such as US and EU resulted in
very low growth of exports. The European Union is the single largest market for India's
textiles products, accounting for 35% of India's total textile exports, followed by USA
which accounts for nearly 27%. Other important countries are the UAE, Saudi Arabia,
Canada, Bangladesh, China, Turkey and Japan (Kant, 2007) (See Table 2).
TABLE 2: TEXTILES AND CLOTHING EXPORTS
COUNTRY (IN RS. CRORE)
2005-6 2006-7
USA 16,662.76 16,927.21
UK 5,097.26 5,131.75
GERMANY 3,852.39 3,825.02
FRANCE 3,273.19 3,369.81
ITALY 3,023.48 3,353.77
SPAIN 2,144.58 1,922.86
CANADA 1,580.30 1,524.48
Source: http://www.handlooms.com/HGovernment.aspx accessed on Oct. 1, 2011
Smaller countries like Vietnam, Bangladesh and Pakistan have wrested the
advantage in textile and clothing exports from India, raising their exports to markets
like the US and EU in the post-quota (2005-2007) period, according to a study by FICCI.
India's share in EU textile imports declined from 7.9 per cent to 7.5 per cent between
1995 and 2007. There has, however, been a declining trend in growth of India's textile
and clothing exports to EU since 2005. Exports to EU were 18.6 per cent in 2005 which
declined to 14.9 per cent in 2006 and 12.6 per cent in 2007. Similarly, in the US market,
India's average price for textile exports declined in the post-quota period, but was
5
stillhigher than China and Pakistan prices, the study noted.

5India's
post-quota textile exports to EU, US decline; FICCI, 20 June, 2008, accessed on April 8, 2010, from
www.domain-b.com
148 ‹ Enhancing Enterprise Competitiveness through Human Capital and Operations Management

TABLE 3: EXPORT OF ALL TEXTILE ITMES IN VALUE TERMS-MAJOR COUNTRIES6

The fact is further substantiated from the data for the next four years i.e. 2006-07 to
2009-10 (Table 3). Exports to US declined to US $ 4430 million from US$ 4752 million,
registering a negative change of 6.78% over the period. Similarly, during the period
exports to Canada also declined to US$ 351 million from US$ 406 million, accounting for
the negative growth of 13.55% over the period. This negative change has been taken
place in spite of overall increase of exports from US$ 19,436 million to US$ 23,419
million accounting for an increase of 20.49% over the period. Export to major European
destinations, such as UK, Germany, France, Spain, Turkey, The Netherlands, Belgium and
Denmark also registered some positive change which has again vanished because of
recent European crisis. Consumer confidence in the Western world is low at this
moment and so is the case of USA where retailers fear an impending slowdown. This
would keep consumers away from shopping. Therefore, while taking a very cautious
approach, the Indian textile industry which has already been adjusting its production
schedules as per market requirements, has now started targeting countries such as

6Report of the Working Group on Textiles and Jute Industry for Eleventh Five Year Plan (2007-12),
Government of India, Ministry of Textiles (Dec. 1, 2006) http://www.txcindia.com/html/XIplanch17.pdf,
accessed on Oct. 1, 2011.
 Accelerating Human Resource Performance for Sustainable Growth: The Indian ‹ 149

Russia, Japan, Latin America, and Australia which are very strong markets for China
7
as well .

EMPLOYMENT IN INDIAN TEXTILE SECTOR

The textiles sector has the second largest share of employment after agriculture. Its
sustained growth is important for improving quality of life. It has immense potential for
creation of employment in organized and decentralized sectors particularly for women
8
and underprivileged.
The end of textiles import quota regime in the industrial countries offers India a
huge opportunity to expand textiles and garment exports and thus generate substantial
employment (Table 4). The Singh Committee has estimated that by 2010 there will be a
total investment of Rs. 98,550 crore in the textiles sector, out of which Rs.37,050 crore
would be in processing, Rs.10,600 crore in spinning, Rs.22,950 crore in weaving,
Rs.24,000 crore in garmenting, Rs.3,150 crore in knitting, Rs.1800 crore in ginning and
processing, Rs.500 crore in jute and Rs.1200 crore in silk and wool. Target for garments
export is US $ 25 billion by 2010. Similarly, the New Textiles Policy aimed at US $ 50
billion (garments US $ 25 billion) as textiles exports target.
In a study by the Credit Rating Information Service of India Limited (CRISIL), the
textiles sector is projected to grow from its present level of approximately US $ 37
billion to US $ 85 billion by 2010. Domestic consumption is projected to rise to US $ 45
billion, and exports are targeted at US $ 40 billion. These estimates will see phenomenal
growth in the manufacturing, processing and garmenting sectors of the textiles industry,
which in turn will throw up the need for an estimated 12 million new jobs (5 million in
the organized sector and 7 million in supporting and ancillary services). According to
the Singh Committee, total employment of 82 million in the textiles sector in 2002 is
expected to reach 91 million by 2006-7. To cope with the enhanced requirement of
trained manpower on such a massive scale within a short span, the sector will have to be
strengthened and augmented. (Ministry of Textiles, 2006).
Manpower Requirements in the Current Phase
According to the CRISIL study (Ministry of Textiles, 2006), there would be a
requirement of 12 million workforce by 2010. It will be expedient to plan for the
requirement of training of this 5 million technology-driven goals manpower. Ten to
fifteen per cent of this additional manpower will be required at supervisory, and middle
management levels, in production facilities.
Role of Human Resources for Increasing Competitiveness of India’s Textile Industry
Wide availability of skilled labour in India has been another differentiator. India has
been adept at traditional apparel-making skills like embroidery, mirror work and

7Chinese penetration in Australian and Japanese markets is 90%, yet India knows it needs to take a plunge
(Mehta, 2011)
8http://texmin.nic.in/ob_006_chap1.pdf ,accessed on April 12, 2010
150 ‹ Enhancing Enterprise Competitiveness through Human Capital and Operations Management

beading, design and at making complex garments. There are training institutions like the
National Institute of Fashion Technology, which produce nearly 1000 graduates a year,
9
and this has enhanced design capabilities of India in the fashion industry.
He Planning Commission in its Approach Paper for the 11th Five Year Plan has
emphasized the need for the manufacturing industry to attain double digit growth. An
emerging shortage of high quality skills that are needed for the manufacturing industry
could erode India’s competitive advantage. Unless this problem is addressed on an
urgent basis, the Indian textile industry will fail to attain global standards.
TABLE 4: EMPLOYMENT IN TEXTILE AND ALLIED SECTORS
Sr. No. Sector/ Industry Employment (In Mn. Nos.)
As on Projected for the Terminal Year of Increase
March the Eleventh Plan
2006
I. Textile Sector
1 Cotton/Man-made 0.94 1.4 0.46
Fibre/Yarn Textile/Mill
Sector (including SSI spinning
& exclusive weaving units)
2 Man-made Fibre/Filament 0.16 0.24 0.08
Yarn Industry (including
texturising industry)
3 Decentralised Powerlooms 4.86 5.08 0.22
Sector
4 Handloom Sector 6.5 7 0.5
5 Knitting Sector 0.43 0.45 0.02
6 Processing Sector 0.29 0.44 0.15
7 Woollen Sector 1.5 3.2 1.7
8 Ready Made Garment Sector 5.57 11.22 5.65
(including Knitwear Sector)
9 Sericulture 5.95 7.7 1.75
10 Handicraft Sector 6.57 8 1.43
11 Jute Industry
i) Organised Jute Industry 0.26 0.26 0
ii) Decentralised Jute 0.14 0.2 0.06
Industry
Total (I) 33.17 45.19 12.02
Table 4 (Contd.)…

9The Indian Textile Industry in 2005, ICMR,

http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/The%20Indian%20Textile%20In
dustry%20in%202005-Intro2.htm, accessed on June 12, 2010.
 Accelerating Human Resource Performance for Sustainable Growth: The Indian ‹ 151

…Table 4 Contd.
II. Allied Sector
1 Cotton
i) Cotton Agriculture 18.6 20 1.4
ii) Cotton Ginning/Pressing 1 1.3 0.3
iii) Cotton Trade 18 19 1
Sub - Total 37.6 40.3 2.7
2 Sheep rearing 1.2 2.8 1.6
3 Jute Agriculture 16 17 1
4 Textile machinery industry & 0.05 0.1 0.05
accessories
Total (II) 54.85 60.2 5.35
Grand Total (I + II ) 88.02 105.39 17.37
Source: O/o the Textile Commissioner, as updated on January 2007, accessible on
http://www.txcindia.com/html/employment_textile%20Mar06.htm accessed on Oct. 1, 2011

On the whole, the Indian textiles and garment industry is poised for a quantum leap
and has to leverage its competitive advantage in the post-quota regime. Entrepreneurs
and existing players are expanding capacities and adopting strategies addressed to the
growing consuming class. Industry is striving to improve quality, productivity and
efficiency. It is introducing global benchmarks with the support of modern technology
and IT solutions.
TABLE 5: EXPECTED MANPOWER REQUIRED VIS-À-VIS INVESTEMENT (SECTOR–WISE)

Source: Human Resource in the Textile Sector-Vision 2010, p. 52” accessible on

http://www.txcindia.com/
The emerging new technologies in weaving, spinning, processing, nonwovens,
knitting, etc. require knowledge-based skilled manpower even on the shopfloor.
However, considering the current environment and industry’s requirements, a major
problem is envisaged with India’s ability to cope with the massive requirement of skilled
workforce at operatives’ level, like spinners, weavers, dyers, finishers, tailors,
maintenance staff for machinery, etc. Modernization of textile mills with state-of-the-art
machinery will only underline the training requirement for even the present operators
to upgrade their skills (Ministry of Textile 2006).
152 ‹ Enhancing Enterprise Competitiveness through Human Capital and Operations Management

The expected manpower requirement vis-à-vis investment (sector-wise) for the

period from 2006-7 to 2010-11 as estimated by the Office of the Textiles Commissioner
in consultation with industry, TRAs, and CRISIL is given in Table 5:
10
NSDC (ICRA) has projected that the human resource requirement for the textile
and clothing sector would increase from about 33 to 35 million currently to about 60 to
62 million by 2022 (Table 6). This would translate to an incremental human resource
requirement of about 25 million persons. Of this, the mainstream textile and clothing
sector has the potential to employ about 17 million persons incrementally till 2022.
TABLE 6: PROJECTED HUMAN RESOURCE REQUIREMENT IN THE TEXTILE AND CLOTHING SECTOR (IN MILLION)
Main-stream Textile and 2008 2012 2018 2022 Incremental
Clothing Industry
Spinning 1.2 1.5 2.0 2.4 1.3
Fabric Manufacturing 5.1 6.5 9.0 11.0 5.8
0.3 0.4 0.5 0.6 0.3
Garmenting 6.5 8.6 12.6 15.8 9.3
Sub-Total 13.1 16.9 24.1 29.9 16.8
Other Related Sectors
Handloom Sector 6.7 7.0 7.2 7.4 0.7
Woolen Sector 1.9 3.2 4.3 5.2 3.3
Sericulture 6.3 7.0 7.9 8.5 2.3
Handicraft Sector 7.0 8.0 9.0 9.8 2.7
Jute Industry 0.4 0.6 0.8 0.9 0.5
Sub-Total 22.3 25.8 29.1 31.8 9.4
Total 35.4 42.6 53.2 61.6 26.2
Source: NSDC (IMaCS analysis)

ACCELERATING HUMAN RESOURCE PERFORMANCE

Human resource development has to be an integral part of any developmental
programme. Hence, there is a need not only to sustain and strengthen traditional
knowledge skill, and capability of textile workers but also to identify areas where new
skills need to be developed and training needs to be imparted. Mapping of the human
resource requirements of the textile industry is one of the critical tasks to
11
be undertaken.
HRD assumes new significance with inescapable competition facing Indian textile
products both in international and domestic markets. Government will support
programmes of organisations and institutions engaged in HRD that will address the
professional manpower needs of the industry. Institutions will be encouraged to
network and synergistically cooperate amongst themselves. IT will become an integral

10Human Resource and Skill Requirements in the Textiles Sector (2022), A Report of the National Skill
Development Corporation (NSDC), New Delhi. The study was undertaken and prepared by ICRA
Management Consulting Services Ltd. (IMaCS), http://www.nsdcindia.org/pdf/Textiles-Clothing.pdf
accessed on Oct. 3, 2011.
11http://texmin.nic.in/ob_007_chap1.pdf , accessed on April 12, 2010.
 Accelerating Human Resource Performance for Sustainable Growth: The Indian ‹ 153

part of HRD effort. Information and expertise available in technical institutes like IITs,
TITs and NID will be tapped for expansion of programmes (Ministry of Textiles, 2000).
Textile Education and Training
The Indian textiles workforce was generally developed within the industry. Newly
inducted unskilled workers acquired their skills from skilled colleagues, who passed on
their expertise. As a result, they inherited basic expertise along with flaws and faulty
skills. Some of the progressive composite mills did have training arrangements for
unskilled and semiskilled workers. Nevertheless, such on-the-job training was more an
exception than general practice.
Education and training are the most critical elements in empowering people with
skills and knowledge and giving them access to productive employment. In the 11th Plan,
it is proposed to focus attention on this area. Technological modernization being the key
to high industrial growth, labour intensive industries like textiles require not only
skilled workforce, but also massive vocational training for skill upgradation (including
handlooms, powerlooms, sericulture, wool, khadi, etc.). For vocational training and skill
development/ upgradation, Industrial Training Institutes (ITIs) are proposed to be
revamped to achieve the objective. Similarly, for higher education and knowledge
development, existing institutions must be strengthened and expanded
wherever possible.
According to the Nodal Centre for Upgradation of Textiles Education (NCUTE), there
are 53 polytechnics, 36 graduate, and 14 post-graduate level textile institutes in the
country turning out about 5000 students every year. Internet sources, however, reveal
that there are 74 polytechnics and 54 graduate, major or minor, government and private
institutes in the country. With the development of the garment industry, fashion,
merchandising and related courses have acquired critical importance.
Infrastructure Facilities
While there is reasonable infrastructure for structured education and training at the
diploma, degree, and post-graduate level, facilities available for training workforce in
maintenance and skilled jobs require augmentation and strengthening. For skilled and
semi-skilled labour, there is no worthwhile training infrastructure available in the
country. The garments sector is a relatively new addition to the textiles industry. A
massive training and education infrastructure will be a prerequisite
(Ministry of Textiles 2006).
154 ‹ Enhancing Enterprise Competitiveness through Human Capital and Operations Management

Giving Boost to Public-Private Partnership Model in Textile Sector

Garmenting would be the single most important segment for augmenting production
and export of textiles and clothing. Plans are in pipeline to introduce public-private
sector partnerships (PPP) in this sector. The PPP model would be suitable for vocational
12
education on a higher level in this sector.
Close Cooperation between Science /Technical Institutes and Industry
There is a strong need to establish close cooperation between countries’s educational
institutes, particularly those having expertise in the field of textile technology. Their
faculty must be encouraged to visit select units frequently to share new developments.
Further, cooperation should go to the extent of having permanent offices in
manufacturing units specializing in technical/innovative textiles and faculty be provided
with full support for research, development and training within the premises of
manufacturing units. For example, in Zhongda Technologies in Shanghai, professors and
doctoral tutors are part of its human resources and the Donghua University, Shanghai, is
a vocational base for textiles technology, and has set up postgraduate practising base in
the company (Chugan, 2007).
Government Initiatives
• The year 2006-07 was important for the growth of the textile industry in the
post -MFA era. The new initiatives taken during the Annual Plan 2007-8, also
emphasize setting up training centres in the public private partnership (PPP)
mode. The scheme is aimed at bridging the gap between training needs of the
textile industry with that of existing infrastructure of training institutes. The
scheme is for setting up new centres, upgrading existing centres, development of
course design and materials, standardization of curriculum, development of
13
trainers’ pool, etc.
• The government brought into force the National Institute of Fashion Technology
Act, 2006 on July 14, 2006. This Act provides statutory status to the Institute,
and formally recognizes its leadership in the fashion technology sector. (Ministry
of Textile, May 2008).
• During the 11th plan Government of India is set to provide general health
insurance for handloom weavers and handicraft artisans through
following schemes:
1. Health insurance scheme as a component of the Handloom Weavers
Comprehensive Welfare Scheme

12Perspective of Indian Textile Industries, Science Tech Entrepreneur, www.techno-

preneur.net/information-desk/sciencetech-magazine/2008/mar08/Perspectives%20of%20Indian.pdf,
accessed on March 12, 2008.
13http://texmin.nic.in/ob_007_chap1.pdf, accessed on April 12, 2010.
 Accelerating Human Resource Performance for Sustainable Growth: The Indian ‹ 155

2. Rajiv Gandhi Shilpi Swasthya Yojana for Handicraft Artisans (Ministry of

Textiles, March 2008)
On the pattern of health insurance for weavers, a scheme for artisans was also
started during 2006-7. The scheme provides for higher subsidy in premium in respect of
14
artisans of SC, ST and BPL families.
• In an effort to increase India’s share in the world textile market, the
15
government has introduced several other progressive steps : .
1. 100% FDI allowed through the automatic route
2. De-reservation of readymade garments, hosiery and knitwear from the
SSI sector.
3. Technology Mission on Cotton launched to make available quality raw material
at competitive prices; TUFS to facilitate the modernization and upgradation of
the textiles industry; and the Scheme for Integrated Textiles Parks (SITP) to
provide world class infrastructure facilities for setting up textile units through
the public private partnership model.
4. The Apparel International Mart in Gurgaon, will provide world class facility to
apparel exporters to showcase their products and will serve as a one-stop shop
for reputed international buyers. The Indian Textile Plaza is being built in
Ahmedabad to encourage exports.
5. Fifty upcoming textile parks to enhance manufacturing capacity and cost
competitiveness.
Skill Performance Gaps
An urgent need is felt to improve the skills of human resources employed in areas such
as procurement, maintenance, manufacturing, quality/quality control, innovations and
diversification, distribution and logistics, domestic and international sales and the
16
related operations. We name a few such gaps .
• Lack of in-depth knowledge / awareness of required inputs and material: the
quality and grades/parameters of cotton, silk and synthetic and rayon materials
and various types of yarns
• Inadequate knowledge and awareness of requirements and maintenance for
smooth functioning of machinery, particularly modern or imported machines
that have latest applications and techniques;
• Lack of the cross-functional knowledge of shopfloor maintenance operations;
• Lack of soft skills to manage the people on the shopfloor;

14http://texmin.nic.in/ob_007_chap3.pdf ,accessed on April 12, 201

15Fibre 2 Fashio.com, http://www.fibre2fashion.com/industry-article/26/2536/spotlight-on-indian-
textiles-industry2.asp, accessed on April 12, 2010.
16For a more detailed analysis , see NSDC /ICRA study mentioned above.
156 ‹ Enhancing Enterprise Competitiveness through Human Capital and Operations Management

• Absence of formal training/education to supervisors

• Lack of understanding needs of international buyers’ requirements;
• Inability to understand cause and effect relationships with respect to defects or
defective products;
• Inadequate or no knowledge of quality standards for various textiles products;
• Lack of negotiation and communications skills with foreign customers for
international marketing;
• Unavailability of sufficient Hindi speaking supervisory personnel in the South-
based mills;
• Lack of knowledge pertaining to dyeing, printing, coating, etc. and processes
thereof;
• Insufficient knowledge of effluent treatment processes;
• Lack of knowledge of latest fashion designs/trends for domestic and
international markets;
• Lack of awareness on speciality/technical textiles and their applications;
• Inability of workers to operate various types of sewing machines and lack of
knowledge of different types of seams and stiches;
• Lack of knowledge and awareness of international quality
standards/specifications and information on packing and labelling
requirements;
• Lack of knowledge and awareness of inventory management system, storage and
logistics information system, etc.

CONCLUSION
Human resource is a key factor and will play a decisive role in the labour intensive
Indian textile industry. The estimates of phenomenal growth in the manufacturing,
processing and garmenting sectors of the textiles industry will throw up millions of new
jobs. In order to cope with the enhanced requirement of trained manpower, the sector
will have to be strengthened and augmented. The 11th Plan gives special attention to
education and training. Further, governmental support for programmes that address
the professional manpower needs of the industry will no doubt enhance the
performance of human resources. There are, however, many gaps which need to be
filled in a more integrated and cohesive manner. To achieve global competitiveness
and excellence and touch new heights, accelerating human resource performance is one
of the most critical factors.

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