Sectoral analysis uncovers operational hurdles and high production costs in ready-made garment enterprises, highlighting the need for targeted policy reforms.
The ready-made garment (RMG) industry plays a pivotal role in India’s textile economy, contributing substantially to employment, particularly for women, and export earnings. While India remains a key player globally, regional disparities persist. This study examines Kerala’s RMG sector, focusing on the relationship between workplace conditions and sustainability in the post-pandemic period. Traditionally recognised for its consumer-driven market and skilled workforce, Kerala faces unique challenges, including high production costs, limited raw material access, underdeveloped skill infrastructure, and restricted market outreach. These issues were exacerbated by the COVID-19 pandemic, which led to declining demand, rising operational costs, and supply chain disruptions. The recent hike in Goods and Services Tax (GST) has further strained small and medium enterprises (SMEs). Drawing on literature and secondary data, the study traces the evolution, current status, and critical issues affecting the sector. Despite notable success stories such as Kitex, Kerala’s RMG industry lags behind peers in Gujarat, Bangladesh, and Vietnam in terms of scalability and cost-effectiveness. Additional concerns include outdated technology, workforce attrition, and mounting environmental pressures. The findings highlight the urgent need for targeted policy reforms, financial incentives, infrastructure upgrades, and enhanced vocational training in areas like fashion design and modern garment technologies. Moreover, the study stresses the importance of inclusive workplace policies that support the predominantly female workforce. Positioned within India’s broader textile landscape, the study advocates for region-specific development strategies that promote sustainable growth through the integration of environmental responsibility, economic resilience, and social equity.
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Reshma et al. (2025) studied this question.
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