Clothing and Textiles Sector

The Apparel sector is a highly employment intensive industry especially for women.

• In the perspective of China losing share in the global market for exports in the apparel sector on account of rising costs of production, the time is ripe for India to make forays into this market.
• However, various challenges exist before India can reap the benefits of this situation.
• India’s competitors like Bangladesh and Vietnams’ exports have duty free access to markets of USA, EU and Japan. Other challenges include, high domestic taxes on man-made fabrics vis a vis cotton-based fabrics; stringent labour regulations; and high logistics cost.

Amended Technology Upgradation Fund

The Centre in December 2015 approved the introduction of “Amended Technology Upgradation Fund Scheme (ATUFS)” in place of the existing Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS), for technology upgradation of the textiles industry, with effect from the date of notification of the scheme.

The new scheme specifically targets

• Employment generation and export by encouraging apparel and garment industry, which will provide employment to women in particular and increase India’s share in global exports.
• Promotion of Technical Textiles, a sunrise sector, for export and employment.
• Promoting conversion of existing looms to better technology looms for improvement in quality and productivity.
• Encouraging better quality in processing industry and checking need for import of fabrics by the garment sector.