Challenges Facing Bhiwandi’s Powerloom Industry
The powerloom industry in Bhiwandi, once thriving, now faces existential challenges due to external and internal factors. This industry, pivotal in providing livelihoods, is threatened by recent economic and policy shifts.
Economic Challenges
- Impact of Global Tariffs
- US President Donald Trump's imposition of a 50% tariff on Indian merchandise poses a significant threat.
- The textile industry, a major export sector to the US, is expected to suffer substantial losses, potentially affecting employment.
- The tariffs could lead to a preference for countries with lower tariffs like Bangladesh, China, and Vietnam.
- Domestic Economic Policies
- Demonetisation and GST have already reduced the number of operational powerlooms in Bhiwandi from 12 lakh to less than 6 lakh.
- Increased power tariffs further exacerbated financial pressures on this largely unorganised sector.
Social Impact
- Employment Concerns
- Bhiwandi's powerlooms employ nearly 30 lakh people, many of whom are migrants from states like Uttar Pradesh, Bihar, and Odisha.
- Job losses could have widespread repercussions, impacting the livelihood of these workers and their families across India.
Industry Perspective
- Concerns of Powerloom Owners
- Owners report a decline in orders and a marginal profit margin of 50 paisa per metre of cloth, making operations increasingly unsustainable.
- The fear of unsold products and price undercutting by larger companies looms large.
- Optimism for Reform
- Some industry stakeholders believe domestic reforms could enhance competitiveness and counteract tariff impacts.
- Proposed reforms include investments in infrastructure, capital, land, and productivity enhancements.
Government Response
- Call for Action
- Bhiwandi East MLA Rais Shaikh urged the Maharashtra government to develop a strategic plan to support the powerloom sector and avert economic distress.
- Key recommendations include safeguarding employment and ensuring sector sustainability.
