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East Indian States charm garment manufacturers with incentives

by Prabir Jana

22-December-2017  |  1 min read

Image Courtesy: Alexander Andrews

It is really heartening to see India finally opening up its states for garment manufacturing. Odisha and Jharkhand are now the flavours of the season. Some of the big names have already taken up plots in these places which is definitely a morale booster for those watching over the fence; while some are still sceptical. Bihta in Bihar was also in news 5 to 7 years back. Some big players were supposed to have taken up plots there too, but unfortunately, the project had gone into oblivion.

While the manufacturers have to carefully decide the optimum parameters that make a location efficient for apparel manufacturing in the long-term, State Governments are offering short-term incentives, primarily masking the inherent weakness of the location. To avail these short-term benefits, manufacturers line up to take the plots, often making those projects unsustainable in the long-term. I would like to refer a 2011 study (StitchWorld June 2011 issue) of apparel manufacturing competitiveness where a total of 113 locations across India were evaluated based on 76 inherent parameters (strengths and weaknesses) and incidentally two of the locations from Odisha claimed the top 2! Although Jharkhand was not there on the list, two locations from Erode were also in the top 6… Waiting to see how predictions unfold over the years.

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