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: this is by being costefficient. The other ways are by developing better design, manufacturing small lots, etc which might make a firm better off, but not necessarily the country. I have been hearing about instances where a number of staff working with garment manufacturers disappeared overnight and shifted to a mall which got opened in the neighbourhood. I have also been hearing about intentions of apparel manufacturers in selling or hiring their premises for better return.
Obviously, as the country moves along the development path, it is natural for the economy to move away from labour-intensive activities to capital intensive activities.
The T&C industry is important, however, because it absorbs people with low skill sets. Also, the process of training is faster. In a country like India, wider employment opportunities may be available for people living in big cities. Textle firms can, though, consider moving to tier-II and tier-III towns and rural areas, and still achieve competitiveness merely due to the vast potential available within India. It may not happen automatically. Some planning on the part of policy makers may be necessary to bring this much-desired change about.
A lot of money is being spent by the ministry of rural development to help millions cross over the much ‘disputed’ poverty line. What if they attempt to utilise some of these funds to foot the wage bill in garment manufacturing units in smaller cities and rural areas? The potential for the industry and employment is massive.
The author is chairman, fashion management studies, NIFT...
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