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Global apparel firms increase sourcing from India

By FashionUnited

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Owing to labour and compliance issues in countries like Bangladesh and Cambodia, India may be at an advantage when it comes to apparel sourcing

by global fashion brands. Recently, Japanese apparel retailer Uniqlo showed interest in sourcing from Indian garment makers. Others, such as Gap, Decathlon, H&M, Zara and Marks & Spencer, are already sourcing from India.

The Apparel Export Promotion Council (AEPC) has said that Uniqlo has asked them to identify the ten largest domestic clothes manufacturers and exporters with whom the Japanese firm could finally ink a tie up for exports. The government too is keen to push for such tie-ups keeping the country’s competitive advantage, such as low labour cost and steady availability of raw materials, in sight. While Cambodia has been in the news for using child labour, Bangladesh has been facing labour unrest and safety compliance issues.

However, contradicting the views that increase in sourcing by global brands could bring a drastic change to country’s economy, Arvind Singhal, Chairman of retail consultancy Technopak said that sourcing can only bring a positive change when global companies start investing in back-end infrastructure in India instead of sourcing from vendors.
AEPC
Uniqlo