Introduction

Over the years the Garment Industry has emerged as one of the main components of the country's export basket. International buyers were also looking for new potential supply sources like India, Bangladesh, Sri Lanka etc. in order to avoid problems caused by quota restrictions on traditional suppliers.

The capital requirement for setting up an apparel-manufacturing unit is relatively low as compared to many other industries. Due to low gestation period and quick turnover, backed by cheap and highly trainable work force available in the country, a spontaneous spree was created for investments in this industry.

The government has also introduced various incentives for garment exports, which has helped in the success of this industry. Schemes like E.P.C.G., 100% E.O.U., Tax benefits and holidays, Low interest rates on credit and many more such schemes have been the prime reason for success of this industry.