Textile Industry in unorganized sector is going through challenges of low productivity, supply chain bottlenecks, labour challenges. Overall a fragmented industry with weaker brand positioning has resulted in closure of over 30% of textile units in the last decade of 2001-2010. The share of job loss from the industry is around 6%. According to a study from ASSOCHAM, increased domestic competition and high investment cost for latest technology has resulted in large number of non-operational units. In Tamil Nadu, around 54% of textile mills have gone non-operational.
Currently, the organized sector in textiles employs around 1.4 million people and contributes to 4% of GDP and 10% in exports.