The special garment package of Rs 6,000 crore introduced by the textile ministry has successfully created 7,50,000 jobs in the garment sector during the fiscal ended March 31, 2017. Apparel exports increased by close to nine per cent after the announcement of the package, as per the data by the ministry.
Garments worth 13.47 billion US Dollar were exported during the period between July 2016 and March 2017, as compared to 12.37 billion US Dollar during the same period in the previous fiscal. However, the total value of textile and apparel exports witnessed a decline of 3.5 per cent to earn 38.6 billion US Dollar in FY17, mainly due to a reduction in outbound textile shipments.
Although the package created 7,50,000 jobs in the apparel sector, it missed the target. One of the main reasons for this was delayed notifications for the purpose.
The job creation estimate is based on a thumb rule which is often adopted by the government. The rule states that an investment of Rs 1 crore creates 70 direct labour-intensive jobs in the garment sector and 30 direct jobs in the spinning sector. Additionally, 10 direct jobs in the textile sector create 13 indirect jobs in lacework, hand embroidery, handwork, washing, specialized dyeing, logistics and more.
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