With an aim to deal with the rising competition from China’s textile and apparel industry, the Union Cabinet on Wednesday cleared a Rs 6,000 crore special package for the sector. The move, according to the government, would create 1 crore new jobs in three years, in addition to attracting investments of $11 billion and generating $30 billion in exports.
“Over the last few years, apparel manufacturing had shifted to countries like China which had cost advantages. However, China’s cost advantage has been neutralised to some extent because of increase in labour wages. We have advantages of economies of scale. Therefore, it was decided to take steps to give a boost to the sector. The package will help in realising the true potential of employment generation in the textile and apparel sector,” finance minister Arun Jaitley told reporters, while briefing on Wednesday’s Cabinet decisions.