Gujarat Emulates Other States' Garment Outsourcing Model, Gives Fillip To Production In Rural Areas

NITI Aayog–backed rural outsourcing model, successfully implemented in Tamil Nadu, Maharashtra, and West Bengal, to be adopted with the primary aim of creating jobs in rural areas

PM MITRA Park Gujarat, rural garment clusters, NITI Aayog, Garment Outsourcing Model,  NITI

As Gujarat gradually decentralises its industrial production towards rural regions, the State government has decided to replicate successful garment outsourcing models adopted by other Indian states by establishing ready-made garment clusters in selected rural areas.

The initiative is aimed at creating large-scale employment alongside skill development, particularly in aspirational tribal districts identified by NITI Aayog.

A senior official from the State's Industries Department said that the Central government has granted in-principle approval for setting up a Mega Integrated Textile Region and Apparel (PM MITRA) Park in Gujarat, with Vansi village in Navsari district identified as the main location.

5F Vision

The park is envisioned to promote textile manufacturing, attract large investments, and generate employment, aligned with the 5F vision — Farm to Fibre to Fabric to Fashion to Foreign.

To strengthen the entire textile value chain, the State has decided to promote ready-made garment manufacturing clusters in tribal and rural areas, enabling decentralised production through outsourcing arrangements with major textile hubs.

PM MITRA Park

The official noted that Gujarat contributes nearly 30% of India's cotton production and around 35% of its fabric output. The proposed PM MITRA Park is expected to give Gujarat a global identity in textile manufacturing.

Tribal and rural districts such as Dahod district, Narmada district, Tapi district, and Chhota Udepur district have been identified for decentralised garment production. These areas will act as outsourcing bases for the textile hubs of Ahmedabad and Surat, significantly boosting employment opportunities for women and youth.

In backward districts like Dahod and Narmada, unemployment rates range between 8% and 12%, with particularly low workforce participation among women. Tribal communities account for nearly 15% of Gujarat's total population. To address these challenges, garment outsourcing clusters and small manufacturing units will be established to generate sustainable local employment.

RMG Sector Employs Over Four Million Nationwide

India's ready-made garment (RMG) sector contributes nearly 84% of the country's textile exports and provides employment to over four million workers, the majority of whom are women. Rural outsourcing of textile manufacturing has proven successful in states such as Tamil Nadu, Rajasthan, Maharashtra, and West Bengal. In Tamil Nadu, Tiruppur, a global hub for knitwear production, has outsourced several segments of its supply chain to rural areas, resulting in the creation of more than 10,000 direct jobs.

A similar model can be adopted in Gujarat by linking rural production units with Ahmedabad and Surat textile hubs. Rural outsourcing helps reduce labour costs, creates local employment, curbs distress migration, promotes MSME growth and women's economic empowerment.

20,000 Rural Jobs Planned In First Phase

At present, Gujarat's textile hubs house more than 1,500 garment manufacturing units. With the PM MITRA Park under development, additional production capacity is being created across the textile and apparel sector.

These hubs are expected to generate large outsourcing opportunities for rural areas, supported by improved transport and logistics infrastructure. Financial assistance will be facilitated through central schemes such as the Pradhan Mantri Mudra Yojana and Stand-Up India.

In the first phase, the project aims to generate 20,000 rural jobs, which is expected to reduce urban migration by nearly 25%.

Outsourcing Segments From Textile Hubs:

  • Ahmedabad: Stitching, embroidery, thread cutting, poly-packing, garment finishing
  • Surat: Garment assembly, packaging, fusing, tearing, numbering
  • PM MITRA Park: High-tech, value-added garment manufacturing in a rural setting

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