Governments proactive policies, including additional incentives and likely Free Trade Agreement (FTA) with European Union (EU), are likely to drive the growth of the domestic apparel sector, a report said. The sector is the largest segment of the Indian textile and clothing industry (IT&C), accounting for 60-65 per cent of the total pie.
Further, India is the 6th largest exporter of apparel in the world after China, Bangladesh, Vietnam, Germany and Italy. “The role of government is very crucial for the overall growth of the apparel sector. Government recently announced a Rs 6,000-crore package for textile and apparel sector, which includes additional incentives for duty drawback scheme for apparels, flexibility in labour laws and tax and production incentives to garment manufacturing units. “Moreover, the government is actively considering an FTA with European Union which will allow duty-free access of Indian garment in EU, the worlds second largest export destination for ready-made garments,” said the report by Care Ratings here.