LS polls: Tumkur hopes yarn will spin again for its textile industry

The sector is facing multiple challenges like labour shortage, falling exports and bureaucratic delays

In the bustling city of Tumkur in Karnataka, where the sounds of a vibrant textile industry once echoed through the streets, a sombre mood prevails in the air.

Once adorned with flourishing cotton and silk mills, Tumkur today is at the crossroads, thanks to the fading textile industry.

With the upcoming general elections, Tumkur's textile community waits in anticipation for a government that will rekindle the flames of its lost jewel.

Tumkur's textiles sector is facing multiple challenges like labour shortage, falling exports and bureaucratic delays. Subsidies and approvals are slow, hindering growth. With entrepreneurs rallying for policy reforms, the industry seeks a revival amid the adversity.

Hafeezur Rahman of Techmax Structurals, which builds infrastructure for the textiles industry, said labour shortage and surging export rates are hurting the garment industry. Cheaper labour in Bangladesh and China is also adversely impacting business in India.

“There is no boom in the textiles industry now. If this particular segment is developed, the employment issue will be resolved and foreign exchange will also be generated. The government should focus more on strengthening the micro, small and medium enterprises (MSME) sector than high-profile companies, as the former is the backbone of economic growth,” said Rahman.

Rahman added that simply earmarking money by the government would not bring in change.

According to him, the government should work on “quality, modernisation, and training” for the industry. He said, “The government should take initiatives to build a separate special economic zone (SEZ) for the textile industry.”

Ronald, business head of MAF Clothing, said water scarcity is hampering dyeing and washing operations while land scarcity is hurting growth.

He called for “strong wage incentives through the central government” as it is a critical factor in attracting and retaining skilled labour within the industry.

Tumkur-based industry consultant Prabhu SR said the previous government announced about 70-80 per cent subsidies for SC/ST candidates in the garment industry. However, funds have not been received yet.

“Additionally, over the last few years, people have struggled to process their application forms in the textiles department. Entrepreneurs were hopeful and invested in the industry, but now, they are frustrated. The government is promising several things but not executing them,” Prabhu said.

He said, “In the garments sector, the big players have successfully established themselves but the smaller ones or first-time entrepreneurs are struggling. It is because of the lengthy time it takes for approvals. In the books, there is a list of policies but, unfortunately, no implementation.”

Prabhu expects the government to “implement the policies and sanction loans for rural businesses on time.” The apparel businesses, which came up in Tumkur, have eventually shut down due to these hurdles.

In Tumkur's textile landscape, 18 firms stand as pillars of the industry, according to Government of Karnataka records.

Dominating the scene, Shahi Exports and MAF Clothing together employ close to 5,000 workers, shaping the city's economic narrative.

Karnataka’s new textiles and garment policy aims to position the state as a leading destination for textiles and apparel in the country.

The policy aims to provide stimulus to the textiles industry and generate 500,000 jobs in five years by attracting investments worth Rs 10,000 crore.