Recently, the Federation of Indian Chambers of Commerce and Industry (FICCI) recommended that the government reform the labor system to improve the competitiveness of the textile and apparel industry and promote the export of related products from India. Currently, this proposal has been submitted to the National Manufacturing Competitiveness Council and the National Textile Policy Council for review by the Indian government.
The Federation of Indian Chambers of Commerce and Industry pointed out that textiles and clothing are a labor-intensive industry. Therefore, a labor system that protects the legitimate rights and interests of workers is crucial to the development of the industry. In order to maintain the high growth rate of the industry, labor laws need to be improved. Although the current industry development is facing many changes, many Indian textile production companies have to comply with outdated and backward legal regulations, and the government should relax some of these provisions. In addition, workers in the garment industry are the key to promoting the rapid growth of the entire textile and garment industry chain, and reform of the garment manufacturing industry is imperative. Since the production of the garment manufacturing industry is highly seasonal, it is necessary to consider a flexible work system for workers based on order volume. At the same time, the High-Level Manufacturing Council of India should rate workers and distinguish between skilled and unskilled work so that companies can choose according to production seasons.
In the global textile and apparel export market, India currently accounts for only 4.5%. India’s annual overseas sales of about $32 billion lag far behind China and the European Union. In recent years, the Indian government has provided sufficient subsidies to the industry to enhance export competitiveness. Specific measures include the Technical Upgrading Fund Scheme (TUFS), a scheme to develop technical textiles, and a group insurance scheme for power loom workers. From an enterprise perspective, work is also underway to promote reform of the labor working environment. Indian company Arvind Mills plans to mobilize employees’ work enthusiasm by building a large-scale garment factory with attached employee dormitories.
