Apparel Sector

In the apparel sector, it is well perceived that quality is a multi-dimensional aspect. There are many areas of quality, based on which the garment exporters are supposed to work. Quality of the production, quality of the design of the garment, quality of purchase, quality of final inspection, quality of the sales, quality of marketing of the final product are some of the important measures. But quality of the final product is ultimately integrated to customer satisfaction. Quality increases the value of a product or service, establishes brand name, and builds up reputation for the garment exporter, which in turn results to build consumer confidence, high sales and foreign exchange for the country. It is worthwhile to mention that the responsibility of production of appropriate quality garment and right characterization as per international standard norms lies with different agencies such as retailer, buying agent, vendor and consumer testing service laboratory associated with garment business.

The apparel sector is growing in India, but some constraints still hinder its growth. The challenges faced by the apparel sector include labor regulations, trade policies, tax and tariff policies, logistics, and the international trading environment as compared to other countries. Moreover, the time and cost involved for the transport of goods from factories to destinations are higher than its competitor countries.

Tax and tariff policies are different in India from competitor countries. The taxes and tariffs are different for manmade textiles and cotton/natural textiles. The policy is in the favor of cotton-based textiles than man made textiles. This is a serious issue because the export demand of man made textile is more than cotton-based textile globally. With the tax relation for the man made textile, exports can be increased.

Apparel sector will get a subsidy to boost employment in the apparel sector. The government will provide benefits in the employee’s provident fund. According to a recent house analysis (2016), an FTA with the UK and EU can create 1,08,029 direct jobs per year in the apparel sector, besides indirect jobs.

Employment in the apparel sector can be created by the reformation of labor laws. Low wage employees get only 55 per cent of the salary since 45 per cent of it goes to various provident fund schemes and insurance. Low wage employees may not prefer 45 per cent savings as they need their salary at that time rather than in the future. Employees should be given a choice in terms of savings. They should be free to decide among the different schemes for savings to encourage them to save. Various insurance policy companies also offer great options.

The apparel sector has a tremendous opportunity for growth and job creation, which directly leads to economic growth. The aim of all industrial policy promotion is to implement them without risk. But the apparel sector can boost exports, employment and social transformation by employing women. To conclude, many of the future policy responses like labor law reform, FTAs and tax rationalization, Skill Development could give huge benefits to the Indian economy.

Programs Implemented & Aligned with  SSC are:

  1. 1. In-line Checker
  2. 2. Packer
  3. 3. Sewing Machine Operator
  4. 4. Hand Embroiderer
  5. 5. Pressman
  6. 6. Export Assistant