Upgrading in the Indian Garment Industry: A Study of Three Clusters

Published By: Asian Development Bank | Published Date: April, 01 , 2016

This paper examines the process of upgrading of the Indian garment industry through a survey of 100 firms in three clusters in Delhi National Capital Region (NCR), Tirupur, and Mumbai in 2012. Upgrading could be of three types: process, product, or functional. Product upgrading entails producing higher value added products and involves steps taken to upgrade product quality, introduction of new fabrics and raw materials, and reduction in reworking rates. Process upgrading occurs through the incorporation of more sophisticated technologies in production and/or reengineering. Process upgrading takes place through use of new production machinery, worker training, reduced delivery time, total quality programs, new organizational approaches, improvements in the production process, and increased use of computer programs and internet for business purposes. Functional upgrading involves moving to higher value functions and occurs through design, marketing, and branding; most value addition occurs in this stage of production.

Author(s): Mishita Mehra, Prithvijit Mukherjee, Saon Ray | Posted on: May 25, 2016 | Views()

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