India Takes Lesson From China to Lure Workers to Garment Industry

India ranks as the world’s third largest exporter of garments. Government regulations once limited investment and factory size; with those lifted, some firms may follow China’s industry model by constructing dormitories to attract workers from poorer areas, reports Amy Kazmin for the Financial Times. “Despite the country’s vast, young labour force, India’s garment industry has struggled to realise its potential, burdened by crippling power shortages, poor infrastructure, high worker turnover and fragmentation,” Kazmin writes. “[W]ith costs in China rising and concerns mounting about Bangladeshi working conditions, Indian companies are looking to new strategies to capitalise on what they see as a window of opportunity.” The textile industry accounts for 11 percent of the country’s total exports and employs 45 million. Factory owners press India to lift other labor regulations, including limits on overtime and prohibitions against layoffs or women working at night. Kazmin concludes, “Managing workers’ dorms in India will be challenging, given vast linguistic and cultural diversity and high sensitivity around issues of women’s security.” – YaleGlobal