Rising Chinese imports threaten 25 lakh jobs in domestic furniture industry: Study
With $447 million worth annual furniture imports into India, China accounts for 53 per cent of India's total furniture imports worth over $736 million thereby giving severe competition to the domestic industry, according to a just-concluded ASSOCHAM study.
imports into India
are growing at 27 per cent annually while
furniture exports from the country are growing at a growth rate of
about 18 per cent," noted the study titled 'Potential of
Furniture Industry in India' conducted by The Associated Chambers
of Commerce and Industry of India (ASSOCHAM).
France, Germany, The UK and The US are leading destinations for
India's furniture exports while China largely dominates the
furniture imports into India followed by Germany, Malaysia, Italy and
"Growing furniture imports from China are
threatening jobs of over 25 lakh people engaged in over 10.61 lakh
registered and unorganized furniture factories across India," said
D.S. Rawat, secretary general of ASSOCHAM while releasing the
"Lack of modernization and innovative
design, dearth of skilled labour, limited market access and lack of
quality control are certain key issues restricting the growth of
India's furniture industry and also the main reasons non-operation
of furniture factories," said Mr Rawat.
furniture manufacturing factories in India is also an issue of grave
concern to the domestic industry, evidently as of the total 1,419
registered furniture factories in India only 1,157 factories were
under operation as of 2011-12 i.e. about 20 per cent of registered
furniture factories in India were non-operational, highlighted the
Maharashtra is the leading state with 222
registered furniture factories followed by Tamil Nadu
Rajasthan (124), Andhra Pradesh
(119) and Karnataka
(112). The top
five registered factories constitute almost 55 per cent of registered
furniture factories in India.
factories have more potential in terms of employment generation as on
an average one registered furniture factory generates 40 jobs whereas
an unorganized factory generates just about three jobs."
over 57,000 jobs being generated by registered furniture factories
across India, Maharashtra
is numero uno in generating maximum of over
15,100 jobs followed by Tamil Nadu (9,318), Rajasthan
Karnataka (4,998) and Andhra Pradesh (4,087) with top five states
accounting for about 68 per cent of total employment generated by
registered furniture sector in India.
62 per cent of non-operative registered furniture factories followed
(60 per cent), Tamil Nadu (30 per cent) and Karnataka (25
Considering that the private final consumption
expenditure on furniture in India has been growing at a compounded
annual growth rate (CAGR) of about 17 per cent (during 2004-05 and
2012-13), revival in real estate and hospitality sectors combined
with rising disposable incomes will further drive the furniture
industry's growth in India, noted the study conducted by The
ASSOCHAM Economic Research Bureau (AERB).
If the aforesaid
issues are addressed effectively, then the sector has the potential
to generate about five lakh additional employment opportunities
during the course of next three years.