Special package to create jobs in textile, apparel sector

Around one crore jobs will be created in three years

GN Bureau | June 22, 2016


#Women   #Weavers   #Textile   #Employment   #Jobs  


Jobs for 1 crore people, mostly women will be created in three years along with an investment of Rs 74,000 crores from a special package for textile and apparel sector, approved by the cabinet on Wednesday.

According to a press statement released by the government, the package is a strategic decision that would strengthen and empower the Indian textile and apparel sector by improving its cost competitiveness in the global market. The measures assume significance due also to its potential for social transformation through women empowerment; since 70% of the workforce in the garment industry are women, majority of the new jobs created are likely to go to women.

What’s in the Package?


The special package includes a slew of labour-friendly measures that would promote employment generation, economies of scale and boost exports.

The salient features of the package:
 

  • Government will bear the entire employer’s contribution of 12% under the employers provident fund scheme, for new employees of garment industry earning less than Rs 15,000 per month, for the first three years.

 

  • EPF will be made optional for employees earning less than Rs 15,000 per month.

     
  • Overtime hours for workers will not exceed 8 hours per week in line with ILO norms. 
     
  • Considering the seasonal nature of the industry, fixed term employment will be introduced for the garment sector.
     
  • A fixed term workman will be considered at par with permanent workman in terms of working hours, wages, allowanced and other statutory dues.
  •  The subsidy provided to garmenting units, under Amended-TUFS, is being increased from 15% to 25%, providing a boost to employment generation.
     
  • The package breaks new ground in moving from input-based to outcome-based incentives; a unique feature of the scheme will be to disburse subsidy only after expected jobs have been created.
     
  • In a first-of-its-kind move, a new scheme will be introduced to refund the state levies which were not refunded so far.

     
  • Looking at the seasonal nature of garment industry, the provision of 240 days under Section 80JJAA of Income Tax Act would be relaxed to 150 days for garment industry.


 

Comments

 

Other News

Beyond participation: Why Indian women need economic justice

India pronounced its commitment to gender equality, decent work and inclusive participation in economic, political and social spheres for women. While the rhetoric of progress fills the air, the lived reality for millions of women in India paints a starkly different picture. Despite carrying a heavy worklo

NSE ranks 4th globally in IPO fundraising

The National Stock Exchange of India (NSE) has emerged as the fourth largest exchange in the world in terms of IPO fundraising during the first half of calendar year 2025 (H1CY25), according to data from S&P Global Market Intelligence. Between January and June 2025, the NSE raised $5.51

On World Youth Skills Day, let’s ask: What will it take to retain Gen Z?

On World Youth Skills Day, observed every year on July 15, we’re reminded that the future of any economy depends on how well it invests in its youth. In India, where over half the population is under 30, the question of youth skills is not just about employment, it’s about meaning, wellbeing, a

Modi’s Ghana, Namibia visit a transformative chapter in India-Africa ties

Prime minister Narendra Modi last week completed a visit to five countries of Global South: Ghana, Trinidad & Tobago, Argentina, Brazil and Namibia. The objective was to reignite old existing partnerships and to project India’s leadership and influence in the Global South community. 

MoEFCC and CAQM launch ‘The Breath of Change’

To tackle air pollution in Delhi-NCR through public participation and creative engagement, the Ministry of Environment, Forest and Climate Change (MoEFCC) and the Commission for Air Quality Management (CAQM) have jointly launched a strategic communication campaign titled The Breath of Change.

India well on way to becoming a global IP powerhouse

Intellectual Property (IP) has evolved into a critical component of innovation and global competitiveness in India’s economy. As businesses pivot toward intangible assets like data, algorithms and branding, IP protection is no longer a matter of formality—it is a strategic imperative. The last

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter