BENGALURU: India’s businesses involved in dealing apparels will witness a staggering 1.2 million new jobs in its labor-intensive garment industry, as a potential rise of 10 percent is estimated for apparel prices in China. The report, brought to light by the World Bank also illustrates how women would benefit the most, as every 1 percent increase in wages can amount to 18.9 percent probability of them entering the labor force. Women dominate a bigger market share in terms of total employment in the apparel industries based in the South-Asian countries. In the apparel sector, women occupy half of the workforce, and this trend is almost similar to that in other South Asian countries like Bangladesh.

"Rising costs of apparel manufacturing in China provides a window of opportunity for India to focus on apparel in productively employing its huge working-age population," says Onno Ruhl, World Bank Country Director, India. 

The report highlights on various policy measures adopted to escalate apparel exports from India, combining methods like reducing tariffs to enhance productivity and importing barriers to ease access to man-made barriers. Furthermore, developing domestic manmade fiber industry and improving productivity can be realized exercising lower excise taxes or other incentives, and by letting firms enter formal sector.

China being the world’s largest apparel exporter has its apparel share of the total export standing at 7.1 percent in 2012, which is half of that in 1990. Moreover, huge opportunities are presented for South Asian countries accounting to 12 percent of global apparel exports, due to potential decrease in Chinese exports.

According to a trade agreement between 12 Pacific Rim countries including the US, there will be major impact for key sectors in South Asia, inclusive of the apparel industry. Furthermore, the report states that Southeast Asian countries are outperforming all South Asian countries in overall apparel export performance, product diversity, and other non-cost related factors.

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