Ludhiana’s apparel manufacturers exploring J&K to invest!

Category: GARMENTS

Country: India

By Apparel Resources News-Desk
03-January-2023

Few of the Ludhiana-based garment manufacturers are exploring opportunities to invest in union territory (UT) Jammu and Kashmir as a delegation of manufacturers will soon have a meeting with the governor in this regard.

The apparel manufacturers are attracted by the incentives provided by the Centre and UT including 30 per cent state capital investment subsidy, up to 5 per cent interest subsidy on working capital, GST reimbursement and freight refund scheme.

Taking advantage of these incentives, the cost of production will be very low as compared to Ludhiana. J&K’s close proximity with Punjab makes it an ideal destination for investment.

“Even if we are able to avail 3-4 incentives out of these after setting up new garment units there, our cost of production would be significantly lower as compared to our units in Punjab. Besides, the overall situation in Punjab is not so good at this moment because of which every industrial sector is eyeing expansion in other states. In such a situation, J&K is the best alternative for us,” said Harish Dua, President, Knitwear and Apparel Exporters Organisation, Ludhiana.

Apparel manufacturers are also of the opinion that Punjab Government’s support to them in the form of fiscal incentives is almost nil and therefore all those factory owners who want to expand their units are eyeing to set up additional units in other states due to massive incentives offered by them.

Though few of the apparel manufacturers have apprehensions in this regard as currently there is no proper ecosystem in J&K for garment manufacturing and it will be one of the major bottleneck for the companies.

A similar initiative of investing out of Punjab was also planned but nothing concrete happened. Few years back, a group of Ludhiana’s apparel manufacturers put efforts to invest in Bihar and also had meeting with the Bihar’s officials but finally nothing came out.

Courtesy: https://apparelresources.com/business-news/manufacturing/ludhianas-apparel-manufacturers-exploring-jk-invest/