While software and outsourcing provide India global recognition in labour intensive-services sector, in the manufacturing sector, thisspace is proudly occupied by apparel or readymade garments (RMG). With exportsexceeding Euro 6.86 bn (exports under Chapters 61 and 62 scheduled under theCustoms Tariff Act, 1975) during 2007-08 accounting for 6%, the industry issignificant for the economy. The total value of Indias exports, the RMGindustry in India is estimated to employ five million people. With a conservativeestimate of 15% growth per fiscal year, the exports will exceed Euro 7.07billion at the end of fiscal 2010.
It is important to note that the garment manufacturingindustry has carved this space in the manufacturing sector, while in parallelcreating employment opportunities to illiterate and semi-literate, women andmen, who would have otherwise been left on the sidelines of the unfolding "India-growthstory". This position of pride has been achieved due to conscientiousefforts of value-conscious RMG manufacturing exporters and traders. Measuresinstitutionalized by the government in the fiscal and monetary space have actedas catalysts in accelerating the growth of this sector.
In India, textile sector in general and RMG sub-sector inparticular impact the economy positively through higher per-unit returns onexported items on one hand and through greater employment generationparticularly for women on the other.
EU which is the biggest importing region for the Indian RMGhad total imports of Euro 50.94 bn during the year 2007-08. Other than India, which stands at the third position, China and Bangladesh are the other two major suppliers ofRMG to EU.
Source:AEPCWeekly
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