Garment Sector: Govt explores Bangladesh-style model to boost Indian garment sector

NEW DELHI: The government has been exploring the possibility of adopting a Bangladesh-like model that would help the Indian garment sector increase production and compete internationally, as well as create jobs in the country.

Although the discussions were preliminary, industry representatives pointed to the country’s huge potential, resulting from both the availability of cotton and the need to shift some production to synthetic fibres (MMF).

Free trade agreements with the UK and the European Union could address one of the main issues – differences in import tariffs, where Bangladesh has an advantage due to its status as a least developed country – but other measures were also discussed at the meeting at the textiles ministry.

Indian industry representatives, led by the Apparel Export Promotion Council, have spoken in favour of promoting investment as an investment of Rs 40 crore in plants and machinery is expected to generate an annual production of around Rs 150 crore. It is estimated that 1,000 machines will create around 2,000 jobs.

Industry representatives have proposed introducing duty-free import of machinery for three years and then imposing high tariffs once a domestic ecosystem is created.

“The Indian apparel industry needs to enhance its competitiveness by increasing the size of its garment manufacturing units, investing in MMF production, implementing technology in manufacturing, investing in technology modernisation and acquiring necessary certifications to position India as a preferred apparel sourcing destination,” said an industry official.

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