Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by the ministry of textiles has successfully created 7,50,000 jobs in the sector during the fiscal ended March 31, 2017, the ministry has estimated. Apparel exports increased by close to 9 per cent after the announcement of the package, as per the data by the textiles ministry.

Garments worth $13.47 billion were exported during the period between July 2016 and March 2017, as compared to $12.37 billion during the same period in the previous fiscal. However, the total value of textile and apparel exports witnessed a decline of 3.5 per cent to earn $38.6 billion in FY17, mainly owing to a reduction in outbound textile shipments.

Although the package created 7,50,000 jobs in the apparel sector, it missed the target. One of the main reasons for this was that a number of notifications which were required for the package's implementation came much later after its announcement in June 2016.

The job creation estimate is based on a thumb rule which is often adopted by the government. The rule states that an investment of Rs 1 crore creates 70 direct labour-intensive jobs in the garment sector and 30 direct jobs in the spinning sector.

Additionally, 10 direct jobs in the textile sector create 13 indirect jobs in lacework, hand embroidery, handwork, washing, specialised dyeing, logistics and more.