Inefficiency to utilize the optimum potential of available resources is a fact in majority of organizations in South Asian countries. The reasons behind this low productivity are specific to the industry type and dependent on various factors leading to the socio economic conditions of that particular country. This study focused on the identifying the various reason for low productivity and effect of prime factor on other factors which leads to low efficiency level in the organizations with reference to the Indian Apparel Manufacturing Organization. The efficiency of an apparel manufacturing organization may be affected by the low technology level, high labour turnover rate, criticality of design, supply chain management, communication gap and other factors. High employee separation from an organization may restrict the efforts to attain organizational objectives. The low technology level would reduce the efficiency level of worker and criticality of design would demand for high skill operators. Also, when an organization separates a high skilled employee, the effects on team work, innovation, service to customers and delivery of services to clients may be adversely affected. The quantitative research design approach is used, which allowed the researcher to use structured questionnaires in collecting data. The study found that HR practices & labour turnover is the prime for productivity loss in the Indian apparel industry followed Resource & infrastructure problem. Turnover, however, had dual effects on the organization; positive and negative effects. Whiles employee turnover introduced new ideas and skill into the company; it’s also led to difficulties in attracting new staff. To reduce the rate of turnover, management should review condition of service for employees; and also ensure that the working environment is conducive.