Textile industry gets some much-needed attention
Focused and wide-ranging support measures announced for the textile-garments sector that also incorporate some elements of labour reform are a welcome development
India’s garments industry, a sub-segment of the broader textile industry, is now getting policy attention. This is evident from the focused and wide-ranging support measures announced for the textile-garments sector that also incorporate some elements of labour reform. For instance, the highly seasonal garment manufacturers can now hire workers on fixed-term contracts with double the overtime work limits and greater freedom for female workers. These relaxations are supplemented with the entire cost (12%) of employers’ provident fund contribution for new workers in the garment industry earning less than ₹ 15,000 per month being borne by government for the first three years; the prevailing portion is 8.33%. Other new features are inclusion of state-level taxes and duties into the export drawback fold.