Accelerating Human Resource Performance for Sustainable Growth: The Indian Textiles and Clothing Industry

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)

JEL Classification: E24, F1, F2, F4, J21, J24, J44, L1, L2, L67, O3