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An Exploratory Research on Problematic Factors in Textile Industry &

Consequences of Decrease in Export of Textile Products: Especially Economic
Development Retention

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An Exploratory Research on Problematic Factors in Textile Industry & Consequences of Decrease in
Export of Textile Products: Especially Economic Development Retention

Turkish Online Journal of Qualitative Inquiry (TOJQI)

Volume 12, Issue 8 July, 2021: 6324 – 6333

Research Article

An Exploratory Research on Problematic Factors in Textile Industry & Consequences

of Decrease in Export of Textile Products: Especially Economic Development Retention

CA. Dr.Gaurav Bhambri

(cagaurav34.gmail.com)
Research scholar
( Maharishi Markandeshwar Deemed to be University)

Dr. Kavita Rani2

(kavita.phd2011.gmail.com)
Assistant Professor
( Maharishi Markandeshwar Deemed to be University)

Abstract-
Definitely we know that now the economic growth is in peril position & our GDP is going negative
which is now 23.67%. Economic development is an pushup of the capacity of any economy to produce
goods & services. This exploratory research is primary data-based research & mainly has been done
to determine problematic factors in Textile Industry & consequences of decrease in export of textile
products inreference to economic development retention in Haryana (India). These Data has been
collected mainly with the help of the designed questionnaire & done from various established Textile
Industry of Haryana (India). Main exploratory Factor analysis is applied for data analysis by IBM SPSS
20 to ascertain the determinants of economic development & textile industry. The study identified three
factors alike Financial aspects, Marketing aspects, administrative aspects which significantly influence
economic development in India. Result of this study has huge significance in today’s highly competitive
Textile Industry. Hence, textile industry should improve their services & production quality offered by
them to enhance Economy growth.
.
Keywords- Economic Development Retention in Textile Industry , Problematic foctors in Textile
industry , Effects of textile industry in Economic Growth , First basic need.

Introduction

The Indian textiles and apparel industry contributed 2% to the GDP, 12% to export earnings and held
5% of the global trade in textiles and apparel in 2018-19. Textiles industry has around 4.5 crore
employed workers including 35.22 lakh handloom workers across the country. The textile
industry plays a significant role in Indian economy by providing direct employment to an estimated 35
million people, by contributing 4 per cent of GDP and accounting for 35 per cent of gross export
earnings. The textile sector contributes 14 per cent of the value-addition in the manufacturing sector.
extile sector is highly unorganized sector. The government has initiated special measures to help
ameliorate the conditions in textile sector due to Covid pandemic and to boost production, marketing
and job opportunities in the sector. The government has conducted a study viz. ‘Impact of Covid-19

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 CA. Dr.Gaurav Bhambri, Dr. Kavita Rani

pandemic on Indian silk industry’ to ascertain the crisis caused to the sector. The industry has faced
various problems of production, cocoon and raw silk prices, transportation problem, non-availability of
skilled workers, sale of raw silk and silk products, working capital and cash flow , reduced export/import
orders, besides restrictions. The last three month orders and supply as given below shows declining
trend in jute production during the peak Covid-19 period which is substantially improving now.

Month Order Supply by Mills

June 2020 2.75 bales 1.78 bales

July 2020 3.59 bales 2.48 bales

August 3.52 bales 2.32 bales

2020

Government has conducted a Symposium with textile Export Promotion Councils and other industry
stakeholders for finalizing a list of potential export products against which exports of textile and apparel
can be enhanced. The list of potential export products were shared with the Indian Mission abroad for
identification of potential buyers in the respective countries. In order to make the textile sector
competitive by rebating all taxes/levies in international market, the Government has decided to continue
the RoSCTL (Rebate of State and Central Taxes and Levies) scheme until such time the RoSCTL
scheme is merged with Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. For
this purpose, the Government has approved adhoc allocation of funds of Rs. 7398 crore for FY 2020-
21 for issuance of duty credit scrips under RoSCTL scheme. Further, in order to boost exports in MMF
sector, Government has removed anti-dumping duty on PTA (Purified Terephtallic Acid), a key raw
material for the manufacture of MMF fibre and yarn. To mitigate the effect of the COVID-19 pandemic
on trade, this Ministry has taken up the various trade facilitation related issues raised by the industry
stakeholders from time to time with the concerned Ministries for early redressal.
A special measure to alleviate the difficulties of beneficiaries under Amended Technology Upgradation
Funds (ATUFS) was initiated in the Ministry of Textiles during the COVID pandemic. Under this
measure, an option has been extended to the applicants, where the physical examination of the
machineries by Joint Inspection Team (JIT) has been completed, to avail their subsidies released on
submission of Bank Guarantee. The advance release of subsidy against bank guarantee is met from the
regular budget allocation under ATUFS.
The Government of India has also announced a special economic package viz. Aatma Nirbhar Bharat
Abhiyaan for boosting economy of the country and making India self-reliant. Relief and credit support
measures have been announced for various sectors. The weavers & artisans can avail benefits of these
relief and credit support measures to revive their businesses which have suffered due to lock down
necessitated by Covid-19 pandemic.
Apart from the above special economic package, the Ministry of Textiles has taken following initiatives
for the benefits of handloom weavers and artisans across the country: -
i.To support the handloom and handicraft sectors and to enable wider market for handloom
weavers/artisans/producers, steps have been taken to on-board weavers/artisans on Government e-
Market place (GeM) to enable them to sell their products directly to various Government Departments
and organizations.
ii.To promote e-marketing of handloom products, a policy frame work was designed and under which any
willing e-commerce platform with good track record can participate in online marketing of handloom

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 An Exploratory Research on Problematic Factors in Textile Industry & Consequences of Decrease in
Export of Textile Products: Especially Economic Development Retention

products. Accordingly, 23 e-commerce entities have been engaged for on-line marketing of handloom
products.

iii.A social media campaign #Vocal4handmade was launched on the 6th National Handloom Day by the
Government, in partnership with all stakeholders, to promote the handloom legacy of India and to ensure
people’s support for the weaving community. It has been reported that the social media campaign has
resulted in renewed interest of the Indian public in handlooms and several e-commerce players have
reported increase in sale of Indian handloom products.
iv.The Ministry of Textiles has requested the Chief Ministers of all States and UTs to instruct their State
Handloom Corporations/Co-operatives/Agencies to make purchases of the finished inventory available
with the handloom weavers/artisans so as to put some ready cash in the hands of the weavers to enable
them meet their household needs.
v.IN the face of the unprecedented Covid-19 pandemic, it is not feasible to hold conventional marketing
events such as exhibitions, melas, etc. To deal with this crisis, the Government endeavors to provide
online marketing opportunities to our weavers and handloom producers.
vi.Taking a step towards realizing “Aatma Nirbhar Bharat”, the vision of our Hon’ble Prime Minister,
Handloom Export Promotion Council has endeavored to virtually connect the Handloom Weavers and
exportersfrom different corners of the country with the International Market.

Review of Literature
Quality of textile industry may be improved, beyond the basic knowledge as reading, writing and
arithmetic (the 3R’s), with the help of (4 C’s) critical thinking, communication, collaboration and
creativity (Mai, 2005).O’Neill and Palmer (2004) described service quality like “the difference between
what a customer expects to receive and his/her perceptions of actual delivery”. industries who have
research experience positively affect the most of student(Kaur Mandeep & Sharma Deepa,
2019).Customer satisfaction can be predicated on the basis of industry expertise and interest insubject,
customer service facility, quality goods, product impression (Mai, 2005). Customer’ expectation
interrelated with their satisfaction and satisfaction depends on service quality (Mavondo et al., 2004).
direct relationship with customer satisfaction (Liu and Liu, 2004).Industry services like quality,
preparedness and commandare playing an important role in customer satisfaction (Bhambri Gaurav,
2021; Mai, 2005;Mavondo et al., 2004; Pop et al., 2008;).Success of textile industry instituteshighly
counts on faculty services like production effectiveness, quality, awareness and expertise(Pop et al.,
2008; Bhambri Gaurav, 2020). Skills develop through different vital features such as transparency
evaluation, professional development, ability, professional development, feedback and training
(Spooreen et al., 2007).Factors alike life, and instructional effectiveness, experience and services,
reputation, product offered & atmosphere influence satisfaction (Pop et al., 2008). Satisfied customer
significantly loyal to institutionand promote the institution through word of mouth(Kaur Mandeep,
2020; Rani Kavita, 2021). A strong relationship exists between customer satisfaction and factors of
ervice quality alike reliability, responsiveness and empathy, assurance and tangibility (Ham and
Hayduk, 2003).Competence, security, reliability, tangibility, responsiveness, courtesy, credibility,
communication, influence student satisfaction(Parasuraman et al.,
1985). Customer consider reliability as most significant and empathy as least imperative among five
quality dimensions of SERVQUAL Environment of Textile industry, demographic, support facilities,
quality of course programs, internet, facility and effectiveness significantly influence customer
satisfaction (Alves and Raposo, 2007; Forrester, 2006; Bhambri Gaurav, 2021; Pop et al., 2008;
Umbach and Porter, 2002). Selim and Muhammad (2014) found seven factors such as administrative

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 CA. Dr.Gaurav Bhambri, Dr. Kavita Rani

service, tangibles, programmes, staff, delivery, assurance, and empathy.Customer who is irregular is
less satisfied as compared regular customer (Moro-Egidgo and Judith, 2010).Lagrosen et al., (2004)
highlighted textile product quality service, corporate alliance, information and awareness, offered
products, amenities, , internal and external assessment, computer services ,post- factors and resources
for customer satisfaction. Leblanc and Nguyen (1997) foundseven dimensions of service quality of
textile industry like physical evidence, responsiveness, access of facilities, administration, reputation,
contact personnel and curriculum. Success and failure of industry is influenced by quality, level of
satisfaction and dissatisfaction of customers (Aldridge and Rowley, 1998).

Problem Statement and objective of the Study

Shree ram khadi udyog conducted a survey of about 1,50,00 weavers & artisans in year 2016 and found
that only 38 percent of weavers were able to get employment in textile industry at functional role,
around 21 percent employed at non-functional role of business process outsourcing and approximately
4 percent started their own shops . Various reports published from time to time to high light lack of
skills work in Indian textile industry that effects economic development as well as export of textile
products . Therefore, an attempt has been made to“Study Problematic Factors in Textile Industry & it’s
effects on Export & Economic Development in Haryana”.
Hypotheses of the study
H1 : Problematic Factors in Textile Industry has no effects on Export of textile products & Economic
Development of Haryana.

Research Methodology
This study is primary data based for which questionnaire designed to collect the data. Convenient
sampling is used for data collection. Total 108 customers, weavers & artisans data have been collected
by online mode. Initial section of questionnaire comprises the questions to know about the demographic
profile of Weavers & manufactures such as age, gender, qualification, & catagory etc. Later section
embraces 39 statements using a five-point Likert type scale (Strongly Agree = 5, Agree = 4, Neutral =
3, Disagree = 2 and Strongly Disagree = 1). The data is analysed by applying Exploratory factor analysis
with the help of IBM SPSS statistics20.0.

Problem Formulation

The study mainly focuses on whether male & female labour is facing problematic factor in textile
industries of Haryana state. What the male & female labour experienced about deliberately
discriminating with employees engaged in weaving & artsians tasks, & other labour associated in the
environment. Under this research paper study about the textile sector the problems & obstacles that has
effects on the economic development of India .

Data Collection Procedure

Primary Data-: Primary data collected by using telephonic & personal interview of the respondents.
The questionnaire circulated by mode of Google form & hard copy, which is distributed among
respondents by the direct emailing mode. Shared the questionnaire link to respondents on the Whatsapp
group. & also has shared the questionnaire link to different textile exporters on their email ids. Out of
every 200 surveys, 108 questionnaires were collected back from the respondents

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An Exploratory Research on Problematic Factors in Textile Industry & Consequences of Decrease in
Export of Textile Products: Especially Economic Development Retention

Secondary Data-: It has been collected from the reputed journals, books, articles and online web blogs
etc.

Area of Study

Here, studies on Problematic Factors in Textile Industry & it’s effects on Economic Development in
Haryana (India). Whether male & female weavers faces the problems & obstacles that weavers has to
face in their personal life & professional life due to problematic factors. Gender discrimination in the
workplace. Total 7 textile hub districts comes under the state of Haryana .However, in the present study,
the 5 districts of Haryana state included in the study
Results and Discussion
Table 1 displays the results of validity and reliability statistics, and results of the KMO and Bartletts’s
test of Spherecity. The value of coefficient of Cronbach Alpha has been found 0.79,
Table 1. Result of Reliability Statistics

Number of Items 108

Cronbach's Alpha 0.790

Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.929

Approx. Chi-Square 7670.677

Bartlett's Test of Spherecity
df 693
Sig. 0.000***
(Source: Authors own, ***level of significance at 1 percent)

which implies that around 90 percent of the variability in a composite score is being represented by 39
items. The coefficient of Cronbach alpha value represents reliability of the questionnaire. Therefore,
further analysis can be performed. Kaiser Meyer Olkin coefficient value has been found 0.929(see table
1) which is very close to 1. Because the p value of Bartlett’s test of Spherecity is significant 0.000.
Consequently, factor analysis can be applied on this data set.Table 2 depicts the results of total variance
explained by the extracted eight factors. These factors are obtain of exploratory factor analysis
employing principal component analysis approach with varimax rotation. The analysis found the eight
factors whose initial Eigen value (see table 2) greater than one. These eight extracted factors
cumulatively explain 61.631 percent variance for the entire set of items and which is significant variance
for the representation. Thus,61% characteristics of higher education institutes service quality on
students’ satisfaction is explained by the eight extracted factors. The factor 1 describes the 32.273% of
variance, factor 2 explicates 46.506% variance, factor 3 explicates 21.221% variance, respectively.

Table 2. Represents the factor analysis of determinants of Textile Industry Weavers & artisans
quality on consumer satisfaction

Item Number Factor and Items

Financial aspects (α = 0.868)
Q4 Deployement of funds 0.781
Q1 Income generation 0.753
Q3 Resource utilization 0.733
Marketing aspects (α = 0.832)

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 CA. Dr.Gaurav Bhambri, Dr. Kavita Rani

Q7 CUSTOMER PREFERANCE 0.792

Q10 DECISION MAKING SKILL 0.733
Q11 MARKETING STRATEGY 0.696
Administrative aspects (α = 0.827)
Q2 TRADE DEFICIT 0.746
Q12 INDIAN GOVT POLICIES 0.701
Q6 EMPLOYEMENT 0.662
Q8 LEADERSHIP SKILL 0.585
Q10 ADMINISTRATIVE SKILL 0.712

The study found significant effect of Textile industry service quality factors on Financial aspects.
Financial aspects can be improved though the extra curriculum activities, providing good working
atmosphere and resource availability and problem solving in working place. Selim and Muhammad
(2014) identified various factors of service quality alike administrative service, academic programme,
academic staff, delivery of product, assurance, and empathy. Bhambri Gaurav (2021), , Pop et al.,
(2008)and Umbach and Porter (2002) described factors such as environment of industry, weaver support
facilities, quality of production, administration staff effectiveness, internet and other facility in industry
affect customer & labour satisfaction in industries, Mavondo et al. (2004), and Wiers-Jensenn et al.
(2002) found that customer satisfaction depends on faculty services and their friendly behavior in
working place.Navarro et al. (2005) observe that trainers and their method of training directly affect
the labour satisfaction in industry. Schertzer (2004) described that worling atmosphere is one important
dimensions of labour satisfaction. Industry social life positively associated with customer satisfaction.
Anova : Single Factor
SUMMARY (Table 3)
Groups Count Sum Average Variance
Weavers 5 233 46.6 1270.3
Manufacturers 5 277 55.4 2018.3

ANOVA ( Table 4)
Source of SS Df MS F P-value F critical
Variation
Between Groups 193.6 1 193.6 0.11774 0.740341 5.317655
Within Groups 13154.4 8 1644.3
Total 13348 9

The output of ANOVA test resulted that the P value 0.740341 which is greater than 0.05. And Fvalue
for degrees of freedom at 5 percent level of significance is 0.11774 is lesser than F critical value
5.317655 for level of agree or disagree. This implies that, In respect of Weavers & Manufactures
(Strongly Agree, Agree, Moderate, Disagree, and Strongly Disagree) there is no significance difference
between the statement on “Due to the negative experience of various factors of service quality alike
administrative service, academic programme, academic staff, delivery of product, assurance, and
empathy, economic development retention is reduced” and level of agree. It was noted that on the
statement on that there is Due to the negative experience of various factors of service quality alike
administrative service, financial programme, marketing staff, delivery of product, assurance, and
empathy, economic development retention reduced. The respondents of manufacturers have responded
to Disagree nor agree, agree and strongly agree, the Female have responded to the option Disagree nor
agree, agree and strongly agree respectively. This present study has found the opinion on “Due to the

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An Exploratory Research on Problematic Factors in Textile Industry & Consequences of Decrease in
Export of Textile Products: Especially Economic Development Retention

negative experience of all above factors, economic development retention is reduced” is not significant
each other due to work experience, nature of job, performance & interpersonal & organizational
conflict.

Table 5:

Financial Marketing Administrative

Mean 15.76580 0.000521 0.000254
Median 15.76236 0.001205 8.30E-05
Std. Deviation 0.415460 0.014112 0.000634
Skewness -0.320674 -0.415634 8.452301
Kurtosis 7.431569 6.345230 135.4123
Jarque-Bera 2330.125 1346.248 1745.340
Probability 0.000000 0.000000 0.000000

Table 5 discusses the descriptive statistics to assess the distribution properties of financial aspects with
marketing & administrative aspects. Significant Jarque Bera statistics clearly rejects the hypothesis,
which implies that pattern of all variables does not conform to normal distribution, which is the
precondition for any industry to be efficient in the weak form.
The empirical distribution of the volatility series is positively skewed, indicating a right tail of
distribution, which shows asymmetry. On the other side, negative skewness is observed for return and
volume, which has led the returns to be asymmetric and non-normal and it can be verified from p value
of Jarque-Bera test. This table also reports that factors are highly volatile.

Table 6: Correlation Results

Variables Financial Administrative

Financial aspects 0.034**(0.076) 1.001
Marketing aspects 0.153*(0.000) -------------
Administrative aspects 0.044**(0.086) 1.002

Note: * and ** Correlation is significant at the 0.01 level and 10% level (2- tailed)

Table 6 discusses the correlation results, which clearly shows that financial and administrative &
marketing aspects are positively correlated with decrease in export. There might exist a causal
relationship between trading volume and financial aspects in export industry because a latent,
exogenous variable, representing the rate of information arrival to the industry, affects both volume and
financial variance, causing simultaneous movements. In this study, a weak correlation is detected
between financial and administrative aspects implying that one of these variables cannot be improved
by knowledge of the other.

Table 7: Unit Root Results

Variables Augmented Dickey Fuller P-P Test

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 CA. Dr.Gaurav Bhambri, Dr. Kavita Rani

With constant With With constant With

constant and trend constant and trend
Financial
-44.34612* -44.40671* -44.32561* -44.42568*
Financial
Marketing -16.34210* -25.02367* -39.43417* -38.71252*
*Significant at 1% Significance level

As reported in table 7, Unit root test results shows that financial aspects, and marketing aspects are
stationary at levels, on the basis of both the ADF and PP tests.
Hypotheses of the study
H1 : Problematic Factors in Textile Industry has no effects on Export of textile products & Economic
Development of Haryana.

SUMMARY OUTPUT:

Regression Statistics
Multiple R 0.983019

R Square 0.966327

Adjusted R Square 0.957909

Standard Error 6.128359

Observations 10

ANOVA:

df MS F Significance
F
Regression 1 4311.106 114.789 0.00043
Residual 4 37.55678
Total 5

Lower Upper Lower Upper

Coefficient t Stat P-value 95% 95% 95.0% 95.0%
s
Intercept 11.70946 1.85839 0.13665 -5.78452 29.2034 -5.78452 29.2034
2 5 4 4
Manufacturer 0.597658 10.7139 0.00043 0.44277 0.75253 0.44277 0.75253
s 6 9 7 9 7

The output of regression Statistics, Multiple R is 0.983019, R Square = 0.966327, Significance F value
is 0.00043 and ANOVA test resulted that the P value is 0.136655 which is greater than 0.05. And F

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An Exploratory Research on Problematic Factors in Textile Industry & Consequences of Decrease in
Export of Textile Products: Especially Economic Development Retention

value 114.789 value is greater than F critical value 0.00043. This implies that there is no statistically
significant of weavers and there statement on problematic factors & decrease in export. Similarly, P
value is 0.00043 which is lesser than 0.05. And F value 114.789 value is greater than F critical value
0.00043. This implies that there is a statistically significant of manufacturers comunity and there
statements on problematic factors & decrease in export . This study got the support of the following
findings of the research. “There is no relationship between weavers and there statement on problematic
factors & decrease in export. And There is a relationship between manufacturers and there statement
on problematic factors & decrease in export.

Limitation of the Study

This study primarily focused the some specified textile industry & export in Haryana state only. For
this study data is collected online mode only. Future studies may be conducted covering more states of
India. Therefore, results may be more pervasive in the context of India. Moreover, it is suggested that
data for future research may be collected by personally visiting the textile industry of various states.

Conclusion
The study identifies determinants of textile industry service quality alike extra curriculum activity,
working atmosphere, resource availability and problem solving, product replacement, training quality,
supportive behavior of staff, physical support facilities and administrative policies. In this competitive
ambiance the textile industry work on these factors to improve the satisfaction level among foreign
customers. Because Importer’s satisfaction has direct correlation with growth of textile industrys. The
study suggested that textile industry should emphasize on resources utilization , working atmosphere,
resource availability and problem solving, and product replacement & customer satisfaction. Mangers
should be well innovative and give the proper attention . Weavers & artisans cannot be fully satisfied
but industry are obligatory to gratify the customers as well as labourers by providing the service quality.
The administrative aspects plays the most important role inspite of financial & marketing aspects in
decrease of export & the Govt. should take sufficient action on this view.
Finally , “Administrative policies & Financial aspects put great affects on marketing or export of textile
products & the retention of economic development of country.”

Future Scope
The present study has been conducted in the field of Problematic Factors in Textile Industry in the state
of Haryana, but the future may be studied in the field of other factors as well as practices of many other
areas of Textile industry in India. The present study is conducted in the consequences on economic
development in the state of Haryana. Haryana is a state in north-central India. But such study can also
be extended to other parts of our country. Under this study for the future the effect of gender differences
in textile industry in people's personal and social lives can be studied.

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