June 10, 2025

Current Affairs

India’s Garment Sector need Reforms

Context: India’s stagnant garment export performance emphasises the urgent need for policy reforms to scale up the sector and enhance global competitiveness.

Relevance of the Topic: Mains: Garment Sector- significance, challenges, reforms.

State of India's Garment Sector

India’s textiles and apparel (T&A) sector employs a workforce of 45 million and contributes 2.3% to the overall GDP of India.
T&A sector has grown steadily from $11.5 billion in FY2001 to $37 billion in FY25. However, its share in global trade remains low (4.2%).
The apparel segment alone (under HS codes 61 and 62) has an even lower share of 3% ($15.7 billion). Additionally, this share has remained stagnant for the past two decades. In the last few years, apparel exports have declined at an AAGR of -2%.

India has set an ambitious target to increase its T&A exports from $37 billion in FY25 to $100 billion by 2030.

Key Challenges in India’s Garment Sector:

Lack of scale: Over 80% of India’s apparel units are Micro, Small and Medium Enterprises (MSMEs) which are too small and dispersed. Unlike China and Vietnam, India lacks large, integrated factories that benefit from economies of scale, reducing unit costs, speeding up delivery, and attracting bulk global orders.
High Interest Rate: Interest rates in India average around 9%, much higher than China (3%) or Vietnam (4.5%). For an industry operating on low margins (~4-5%), this makes investment and expansion economically difficult.
Outdated Fibre Mix: India’s cotton-to-Man Made Fibre ratio (60:40) contrasts with the global average (30:70), indicating an outdated fibre mix, and the global shift towards man-made fibres.
Raw Material Cost: MMF (Man-Made Fibres) such as polyester and viscose are 20% costlier in India compared to competitors (Bangladesh, China, Vietnam). Non-tariff barriers like quality control orders hinder MMF-based apparel growth.
Rigid and Complex Labour Laws: India’s 52 central labour laws have created rigidities, discouraging formal hiring and scale. Overtime wages are legally mandated at 2x hourly pay, compared to 1.25x internationally, raising production costs significantly.
Low Labour Productivity and Skilling Gaps: A large portion of the workforce is semi-skilled or unskilled, with poor access to modern training. Lack of effective, demand-linked skilling programs reduces efficiency and competitiveness.

Case Study: Shahi Exports

Founded in 1974 by Sarla Ahuja, Shahi Exports started with just 15 women and has grown into India’s largest apparel exporter.
It operates 50+ factories, 3 mills, across 8 states, with over 1 lakh workers, 70% women.
Built scale through vertical integration (80% fabric made in-house), professionalism, and sustainable practices.
Success of Shahi Exports demonstrates that Indian firms can scale with the right investment, vision, and long-term policy support.

Way Forward

Capital must be made accessible and affordable for scale-focused investments. A structured capital subsidy of 25-30% linked to the size of the unit can provide the initial push. Five to seven-year tax holiday for units would allow investments to mature and become globally competitive.
India’s garment sector needs to transition into a fashion-driven industry. To support this, it is crucial to incentivise and invest in MMF-based apparel while removing non-tariff barriers, such as the quality control orders on MMF.
Simplify labour laws and align overtime wages with global standards to reduce cost burdens. Link MGNREGA funds (say 25-30%) to subsidise labour costs in garment units
Schemes like SAMARTH should be significantly scaled up to provide short-cycle demand-linked skilling, especially for women.
Shift from production-based to export-linked incentives to reward global market success.
At least two of the PM MITRA parks should be developed as garment-focused hubs in labour-abundant states like Uttar Pradesh and Madhya Pradesh. This would help reduce worker migration to southern states, lower production costs, support local employment, and foster balanced, inclusive industrial growth across regions.
Encourage Vertical Integration: support units to produce in-house fabric and processing, improving efficiency and delivery timelines.

India’s garment sector holds immense potential to generate jobs and boost exports, but without bold policy reforms, this opportunity will slip away. Learning from success stories like Shahi Exports and focusing on scale, skilling, and export competitiveness can transform this sector into a global leader.

Also Read: Crisis in Cotton Production in India

Stratospheric Aerosol Injection

Context: A recent study presents a novel approach to Stratospheric Aerosol Injection (SAI) as a potential means to directly cool the Earth.

Relevance of the Topic: Prelims: Concept and Mechanism of Stratospheric Aerosol Injection Method.

What is Stratospheric Aerosol Injection (SAI)?

SAI is a proposed method of cooling the planet and reducing the impacts of climate change by adding a layer of tiny reflective particles (aerosols) to the high atmosphere.
Aerosols reflect sunlight back into space, increasing Earth’s albedo and lowering surface temperatures by reducing the amount of sunlight reaching the earth.
The method was inspired by volcanic eruptions, which have been known to have a cooling effect on the planet by spewing aerosols into the air.
How well SAI works depends on the type of material injected, the timing of the injection, and the location.

Key Findings:

Injecting 12 million tonnes of sulphur dioxide every year at an altitude of 13 km in the local spring and summer seasons of each hemisphere could cool the planet by approximately 0.6 degrees Celsius.
To achieve 1°C cooling, 21 million tonnes/year of sulphur dioxide would be required.
If the particles were injected at an even higher altitude in the subtropics, only 7.6 million tonnes would be required annually.
Higher altitude injection is more effective because particles stay for longer. At lower altitudes particles are more likely to be caught in clouds and washed out by rain. Despite this, researchers are exploring low-altitude spraying because it is technically less challenging.

While there are some benefits to this method, using three times the usual amount of aerosols carries greater risk.

Risks and Side effects of SAI

Social and geopolitical risks: If one country injects aerosols into the stratosphere, all countries will be affected, it could affect global climate patterns, leading to conflicts.
Delayed recovery of the ozone hole and increased risk of acid rain.
Cooling could mask warming on the ground and make countries complacent about curtailing emissions.

Defence Production in India receives a Fillip

Context: While India continues to import a large share of its defence equipment and weapons, government data shows that domestic manufacturing has picked up.

Relevance of the Topic: Prelims: Key trends in India’s defence sector production.

Rising Indigenous Defence Production

India’s defence production touched a record high in FY24 at ₹1.3 lakh crore, growing at 17% compared to FY23, and exceeding the ₹1 lakh crore mark for the second year in a row. In fact, defence production has been seeing double-digit growth since FY22.
While the complete figures for FY25 are not yet in, government data as of December 2024 shows that production is touching ₹90,000 crore against a target of ₹1.6 lakh crore for FY25.
PSUs continue to dominate total defence production. Private companies are gradually expanding, from around 20% share in defence production between FY17 and FY24, their contribution has risen to 24% in FY25.
MSMEs contributed significantly to defence production with FY25 procurement exceeding ₹13,000 crore, over twice the mandated target, due to government support through compulsory procurement norms.
India’s defence exports have exceeded ₹20,000 crore in the past two financial years (FY23 & FY24). These figures are twice as in FY20. Private firms also lead in defence exports, primarily due to a higher number of export authorisations granted to them.

Despite the surge in production and exports, the share of defence in overall government expenditure is on a decline. Yet, India still spends more on the military (as % of GDP) than many other emerging markets.

Also Read: India is the second largest arms importer after Ukraine: SIPRI

Govt. eases procurement norms for Research Labs

Context: The government has relaxed procurement rules for scientific institutions, allowing faster and more flexible access to high-quality research equipment.

Relevance of the Topic: Mains: Supporting R&D in India: significance of new procurement reforms.

Amid complaints from scientists on sub-standard equipment affecting their research, the Finance Ministry issued a circular allowing select institutions to buy equipment outside the GEM portal.

Key Reforms

Bypassing GEM Portal:

Existing rules required all government purchases- from laptops to furniture to be made with the cheapest vendor identified through the Government e-marketplace (GEM) portal. GEM is an initiative of the Ministry of Commerce to prioritise made-in-India equipment.
Updated rules allow Directors of select institutes and Vice-Chancellors or Chancellors of universities to procure equipment outside the GEM portal, as it was unable to meet the requirement of high quality customised equipment needed by scientists.

Autonomy in Global Tenders:

Updated rules allow the heads of scientific institutions to approve global tender enquiry up to ₹200 crore.
Earlier, departmental Secretaries were required to issue such clearances. This usually led to a pile-up of requests and concomitant procurement delays.

Increased Purchase Limits:

Updated rules have doubled the ceiling on goods that can be procured by scientific departments without quotations from ₹1 lakh to ₹2 lakh.

However, all of these concessions are strictly for scientific equipment and consumables, and meant only for: Organisations affiliated to the Ministry of Science and Technology, Council of Scientific and Industrial Research, Department of Atomic Energy and Space, Indian Council of Medical Research, Indian Council for Agricultural Research and educational institutions conducting postgraduate research under various Ministries.

Significance of easing the rules for procurement:

The reforms are being hailed as a landmark decision as reforms would:

Enhance autonomy and flexibility for research institutions empowering them to innovate faster.
Speeds up procurement for time-sensitive research.
Ensures quality by allowing global sourcing.
Reduces bureaucratic delays and red tape.

Crowd Management

Context: A recent stampede at M. Chinnaswamy Stadium in Bengaluru left 11 dead and more than 50 injured.

India has the highest number of stampedes and resultant injuries and fatalities. Data from the National Crime Records Bureau reveal that between 1996 and 2022, India recorded 3,935 stampede incidents, resulting in more than 3,000 deaths.

Relevance of the Topic:Mains: Effective Crowd Management: NDMA guidelines.

What is a Stampede?

Stampede is an impulsive mass movement of a crowd that often disrupts the orderly movement of crowds resulting in injuries and fatalities.
Factors leading to stampedes: Stampedes happen due to:
- High crowd density
- lack of understanding of crowd behaviour
- lack of coordination, clarity in roles & responsibilities of various stakeholders
- lack of proper planning on the part of organisers.
Deaths in stampedes: Stampedes have high mortality rates.
- Most stampede casualties are caused by traumatic asphyxia (partial or complete cessation of respiration due to external compression of the thorax and/or upper abdomen).
- Other possible reasons include myocardial infarction (heart attack), direct crushing injury to internal organs, head injuries, and neck compression.

What is Crowd Management?

Crowd management is defined as a systematic process of planning, organising and monitoring large gatherings. Such management should strategise to reduce and mitigate the risks in advance.
Recognising the issue of recurring stampedes at mass gatherings, the National Disaster Management Authority (NDMA) has issued guidelines for crowd management.
Objective: To assist all stakeholders, including state governments, local authorities, and organisers/administrators of events and venues of mass gatherings, in overall planning and establishing required systems for effective crowd management.

What are the NDMA guidelines for Crowd Management in India?

1. Capacity Planning:

An effective method for counting and monitoring visitors passing through a staging point should be implemented to manage the flow.
Ensure that there are designated physical or virtual locations that each visitor must pass through.
Each staging point should provide adequate facilities for resting, eating, drinking water, and maintaining hygiene.
Encourage multiple routes to enhance visitor movement and reduce congestion.

2. Crowd Control:

During the crowd control focus should be on managing the demand-supply gap through:
- controlling crowd inflow
- regulating crowd movement at the venue
- managing crowd outflow if necessary.

3. Conducting Hazard, Risk and Vulnerability Analysis (HRVA):

Conducting HRVA for mass gathering locations, along with pre-event scenarios can provide a foundation for preparing for all three phases of any severe incident: response, recovery, and mitigation.
The HRVA can facilitate the creation of a decision support system that can enhance the efficiency and effectiveness of rescue and relief operations.
- Identifying Threats and Causes: Planners can utilise existing information to recognise a variety of potential threats and causes of disasters at places where large crowds gather.
- Risk Assessment and Planning: After identifying these potential threats and causes, it is essential to assess their risks.

4. Failure Mode and Effect Analysis (FMEA):

NDMA has recommended that all event organisers/planners conduct FMEA. This methodology involves rating every possible hazard on the dimensions of:
- Severity
- Frequency of Occurrence
- Difficulty of detection on a scale of 1-10 to arrive at an overall Risk Priority Number (RPN).
Higher the severity, higher the frequency of occurrence, higher the difficulty of detection, the score assigned would be higher.
The basic premise is that if a disaster can be foreseen, the probability of occurrence is high. For every hazard, actions are then warranted to reduce/remove the risks.

5. Develop a Course of Action:

A course of action should be created to address each threat, cause, or gap identified by FEMA.
After selecting potential courses of action, the planning team should identify the resources required for each option and assess them against the resources available.

Way Forward for Effective Crowd Management

Having a right Stampede Risk-Reduction Framework, involving an inter-agency multi-disciplinary approach, for planning mass gatherings.
Improving the physical organisation and better design of spaces for effective crowd management.
Live surveillance of the crowd can help organisers monitor crowd density, bottlenecks, pressure buildup, and identify the source of disturbances.
Effective Inter-agency communication among organisers, local administration officials, police and the crowd. They need to establish who will be responsible for issuing the warning and determine how the crowd will be informed.

Emergency preparedness, including the deployment of medical aid, trained personnel, and effective chaos management protocols must be a non-negotiable standard. India must ensure the safety of its citizens, whether they gather for faith, fandom, or politics.