Apparel Industry in focus at Government level | SupportBiz

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Apparel Industry in focus at Government level

In a bid to boost the exports business for garments, the Government of India had acknowledged some key concerns of Indian garment exports industry at the inter-ministerial workshop, held in New Delhi under the Chairmanship of Cabinet Secretary Ajit Kumar Seth.

The Government assured to address the issues related to skill development and availability of credit for the organizations in the apparel industry.

The core issues that are causing great resistance to the industry’s growth and are seeking government agencies’ assistance are high interest rate for credit, expensive raw materials, lack of skilled workforce, tough labour laws and high customs duty on synthetic fabric.

However, there are several schemes and incentive programs already in progress which are primarily aimed at motivating entrepreneurs to expand their export business. In another industry forum organized by FICCI, Madhav Lal, Secretary, Ministry of MSME, Government of India said, "The biggest concern ahead of the Government is the lack of awareness among the entrepreneurs regarding schemes and policies for MSMEs. Poor awareness level leads to non-implementation of these schemes. There is a strong need to ensure that the right level of awareness is created among entrepreneurs.”

The Indian Apparel industry has a strong footprint in the overall landscape of Indian MSMEs. Exports are the main driver for this segment. The Government is implementing various schemes and policies to boost employment generation through development of manufacturing/service oriented enterprises, including those exclusively meant for women empowerment. Garment export industries are eligible for several other schemes including this.

Some of the schemes operated by the MSME Ministry are National Competitiveness Programme, Micro & Small Enterprises Cluster Development Programme, Credit Linked Capital Subsidy Scheme for Technology Upgradation, Credit Guarantee Scheme, ISO 9000/ISO 14001 Certification Reimbursement Scheme, MSME Market Development Assistance Scheme, Lean Manufacturing and IT applications.

Delhi is considered to be an old and strong base for Indian Garment exporters. Although most of the garment exporters in Delhi are doing business since more than three decades but the awareness level regarding the schemes is low.

Madhav Lal emphasized on the role of the industry associations. He said, “We at the Ministry of MSME are working on creating a framework for collaborative approach towards right form of awareness. This collaborative approach will have strong participation from various industry associations. These associations will highlight key concerns of the respective industries.”

“The industry is already struggling with several issues, including growing cost of raw material, poor availability of labour, tough macro-economic conditions, Rupee-Dollar fluctuation etc. In such market scenario, we expect strong support from the Government,” said Anil Kapur, director of Faridabad based Vibgyor Garments Exports. “Although schemes are good and are drafted to motivate the entrepreneurs, but the focus must be given on proper and efficient implementation of these schemes,” he added.