Apparel export can absorb large chunk of the unemployed, AEPC

20 Nov '06

2 min read

Apparel Export Promotion Council (AEPC) announces Pre-Budget Memorandum for 2007-08:

1. Pre-budget Memorandum for sustainable employment generation in apparel export sector

(i) National Manufacturing Competitive Council (NMC) has mandated that 7-8 million jobs are required to be created to remain at present unemployment level.

Due to shrinkage of the jobs in the agricultural sector, only the manufacturing sector can accommodate such unemployed youth. Garment manufacturing sector is one of the sectors which can absorb sizeable portion of such unemployed.

(ii) The industry presently employs approximately 5.5 million persons directly and indirectly, 35-40 percent of these are women.

The growth rate in industry during 2005-06 has been approximately 25 percent. This sector, therefore, must have crated additional jobs equivalent to 5 lacs during 2005-06. The total investment in industry should be in the range of Rs. 20000-Rs. 25000 crores.

(iii) This industry growth achieved in apparel exports contributes directly to the employment generation. It is estimated that an investment of Rs. 1 lacs in this sector creates 6-8 jobs.

This garment units can start production in 3 months time. This is the sector which prefers women workers and encourages employment to rural persons since the necessary skills can easy be learnt by them including even by illiterate persons.

Further garment sector is providing environment friendly employment since it is least polluting and adheres to legal framework and social standards due to regular monitoring even by buyers.

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