Garments Industry in India: Lessons from Two Clusters
Garment industry worldwide is undergoing significant restructuring since the final phaseout of the Multi‐fibre Arrangement. The changes are taking place in terms of relocating production sites on the one hand and coping with the new competition on the other. In this context the paper tries to look into the status of garment industries in India and see how the assumed release of constraints in demand both through liberalization in domestic trade policies and by phasing out of multi‐fibre agreement has impacted upon the growth and size distribution of firms in the sector. The paper focuses on how the responses of individual firms are embedded in the evolving patterns of production organization, labour processes and institutional arrangements related to respective industrial sites.
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