Boom in India’s textile sector may raise employment hopes
After being outpaced in recent years by neighbouring Bangladesh and then hammered by the COVID-19 pandemic, India’s garment factories are now humming near full capacity.
Hindupur
After being outpaced in recent years by neighbouring Bangladesh and then hammered by the COVID-19 pandemic, India’s garment factories are now humming near full capacity.
This is a rare labour market bright spot for Prime Minister Narendra Modi and his ruling party as they head towards an election in 2024.
Texport Industries’ factories in India’s south is scouting for land to add new factories around its main production base in Hindupur, about 100 km north of tech hub Bengaluru.
Indian T&A companies say they are now adding new clients, selling more to old ones and raising production capacity as foreign buyers seek to diversify their supply chains.
Other than China, only India has a big supply chain of everything from cotton to garments.
Indian companies such as Texport, Welspun India and Raymond – whose buyers include Western retailers Amazon, Target, Costco, Walmart Inc, Tesco and Macy’s – have managed to lift sales in recent quarters.
Modi wants them to create some 1.5 million jobs in the sector over the next five years or so.
India’s junior textiles minister, Darshana Jardosh, listed recent announcements to support the industry, such as setting up seven huge all-in-one textile parks for about $600 million. The government has also proposed production-linked incentives worth $1.4 billion.
The American Apparel & Footwear Association (AAFA) said India’s ongoing and planned investments had resulted in “more companies looking at India as a potential source of growth over the coming years”, without giving specifics.
Two industry sources said both Fast Retailing’s Uniqlo and Gap Inc were in talks to expand purchases from India.
Shahi Exports Managing Director Harish Ahuja said demand was high from its existing customers.
India’s April-December T&A exports soared 52% to $30.5 billion from the year-ago period, and the government has set a full fiscal-year target of $44 billion, which would be a record.
For 19-year-old Lopamudra Patel, from the eastern state of Odisha, whose family struggled to survive on her father’s income, the industry has come as a saviour. She joined Texport a few weeks ago for a monthly wage of $100.
Source: Reuters
Image Source: Google Images
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