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Madhya Pradesh garment industry struggles for survival

20
Sep '12
The garment industry in the central Indian state of Madhya Pradesh (M.P.) is struggling to survive and some manufacturing units have already closed down in the past few years.
 
“In the last one year, nearly 7 to 8 percent garment units have shut down and another 10 to 15 percent garment manufacturing units are on the verge of closing down. If the situation continues, all our bigger manufacturers who used to run two shifts will be forced to cut down to single shifts,” Mr. Ashish Nigam, Secretary, Indore Ready Made Garment Traders' Association, told fibre2fashion.
 
Mr. Nigam cites the non-existence of textile clusters in the state as a reason for the poor performance of the state’s garment industry. He adds, “We are not being able to bring about textile clusters in M.P. The reason behind this is that the state government, even after giving repeated assurances, could not provide us with land at cheaper rates.”
 
He further tells that their association approached the Central Government with this matter, but that too of no avail. “When we discussed about the clusters with the Central Government they said that we need the registry of the land first and then they will be able to take it forward. These discussions have been going on for the past three years without any concrete results,” he avers.
 
When quizzed about the growing competition the state’s garment industry is subjected to and its effects on the trade, he replies, “Previously, we faced competition from states like Gujarat, Maharashtra and Punjab. But now, we face competition from several countries, including Bangladesh, China, Malaysia and Bangkok. This has adversely affected the trade and we foresee a not-so-favourable climate ahead for the garment industry even during the forthcoming big festivals like Diwali.”
 
Mr. Ashish Nigam adds, “If the M.P. government does not pay attention to the problems of the state’s garment industry now, then in future it will also face a fate similar to the once thriving toy industry in the state, which has become nearly extinct now.
 
Emphasising the need for government support to the garment sector, Mr. Nigam says, “Textiles and apparels is the second largest employment generating industry after agriculture in India and it is also comparatively eco-friendly and a sustainable business. Hence, the government should support it.” 
 

Fibre2fashion News Desk - India


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