The Surat textile industry in Gujarat is grappling with a financial crisis resulting in a 30-40% drop in production and many factory owners have reduced the work hours to four-five days per week, said people familiar with the matter.
Surat is the second biggest textile manufacturing hub in India after Tiruppur in Tamil Nadu and produces a wide range of fabrics and garments, including silk, cotton, and synthetic textiles. With an estimated annual turnover of ₹80,000 crore, it employs close to two million labourers, many of whom are migrants from states like Uttar Pradesh, Bihar, Odhisha, Madhya Pradesh and some south Indian states as well. However, it has been facing various challenges that have led to a decline in its growth and profitability.
Kailash Agarwal, managing director of Himani Fashions Pvt Ltd that runs two textile production facilities in Surat, said that the production has come down by more than 30% in the last few months. His company has declared five days a week of work for all employees from the month of April.
