While software and outsourcing provide India global recognition in labour intensive-services sector, in the manufacturing sector, this space is proudly occupied by apparel or readymade garments (RMG). With exports exceeding Euro 6.86 bn (exports under Chapters 61 and 62 scheduled under the Customs Tariff Act, 1975) during 2007-08 accounting for 6%, the industry is significant for the economy. The total value of Indias exports, the RMG industry in India is estimated to employ five million people. With a conservative estimate of 15% growth per fiscal year, the exports will exceed Euro 7.07 billion at the end of fiscal 2010.

It is important to note that the garment manufacturing industry has carved this space in the manufacturing sector, while in parallel creating employment opportunities to illiterate and semi-literate, women and men, who would have otherwise been left on the sidelines of the unfolding "India-growth story". This position of pride has been achieved due to conscientious efforts of value-conscious RMG manufacturing exporters and traders. Measures institutionalized by the government in the fiscal and monetary space have acted as catalysts in accelerating the growth of this sector.

In India, textile sector in general and RMG sub-sector in particular impact the economy positively through higher per-unit returns on exported items on one hand and through greater employment generation particularly for women on the other.

EU which is the biggest importing region for the Indian RMG had total imports of Euro 50.94 bn during the year 2007-08. Other than India, which stands at the third position, China and Bangladesh are the other two major suppliers of RMG to EU.

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Source: AEPC Weekly