Save Taxes with Expert Assisted ITR filing.
Starts from ₹799 onwards
Business PlanPrivate Limited

Fashion Industry in India- Laws and Legislations

In India, the fashion industry is regulated by a wide range of laws and legislations that are in place to protect the rights of consumers and to prevent unfair practices within the industry.

The Indian Fashion Industry

In India, the fashion industry is a highly regulated one. The country has a number of laws and legislations that govern the fashion industry, most notably the Trade Marks Act, the Copyright Act and the Designs Act. 

No longer do you stress about coming up with a company name. A list of available companies can be created using the Vakilsearch company name generator.

Additionally, there are a number of specific regulations applicable to the fashion industry, such as those relating to labelling and advertising.

Legal Actions

The Competition Act of 1956 prohibits any abuse of market power by any person and provides for the punishment of offenders. The Trade Marks Act, 1970, provides for the trademark registration and the protection of trademarks against unauthorized use.

 The Designs Act 1926 protects the design of goods and provides for the registration of designs. The Copyright Act 1957 protects literary and artistic works against unauthorized reproduction. 

The Trademark (Amendment) Act 2009 extends the rights provided under the predecessor Acts to include trademarks that are suggestive or based on geographical indications and to protect the use of such trademarks in connection with services.

Click Here For Company Incorporation

Protection of Handloom Industry in India

In the early 1990s, there were about 1,000 handloom weavers in India. In 2002, however, only around 30 handlooms remained. Various stakeholders have been concerted efforts to save the handloom industry in India. The main reasons for its decline are: 

  • A decline in demand for traditional Indian clothing due to the growing popularity of western clothing styles and increased imports; 
  • The increasing use of synthetic materials instead of cotton; and 
  • The lack of funds and skills required to run a handloom business.

Several laws and legislations govern India’s fashion industry (including handloom). The Factories Act of 1948 regulates the working conditions in factories producing clothing and other textile products. The Apparel Export Promotion Council of India regulates exports of apparel and textiles from India.

Effect of Make in India Policy on Textile Industry

India is one of the largest textile-producing countries in the world. The Indian Textile Industry is worth approximately $30 billion and employs around 1.25 million people. India has ambitious plans to become a global textile leader through initiatives like ‘Make In India’. 

The Make In India policy, launched by Prime Minister Narendra Modi in October 2016, aims to attract foreign investment and boost domestic production in a number of sectors, including textiles. The policy has positively affected the textile industry as it has led to increased demand for Indian products and reduced prices of imported fabrics. 

The Make In India policy has also facilitated the growth of the textile sector as it has created jobs in areas such as design, manufacturing, and marketing. As a result, the textile industry is expected to grow rapidly over the next few years. 

However, there are some limitations to the success of the Make In India policy. For example, there are few domestic producers of synthetic textiles, which makes it difficult for them to compete with imports. Moreover, the high cost of inputs, such as yarn and chemicals, restricts the expansion of small-scale businesses in the sector.

Challenges Faced by the Textile Industry by the Make in India Initiative

In India, the textile and apparel industry is a key sector contributing significantly to the country’s GDP. However, the sector faces a number of challenges, including:

Low Productivity Levels:

This is largely because of low production efficiency and a lack of skilled workers. In addition, there is a lack of infrastructure, such as textiles mills and spinning mills. As a result, textile and apparel manufacturers struggle to produce high-quality products at competitive prices.

Limited Access to Imported Materials:

The limited access to imported materials has also been a major challenge for Indian textile and apparel manufacturers. This is because most of the materials used in these industries are sourced from abroad. In addition, tariffs on these items are high, which makes it difficult for manufacturers to compete with international brands.

High Labor Costs

One of the main reasons why Indian textiles and apparel manufacturers have struggled to compete with international brands is their high labour costs. This is because these industries rely on a large number of low-paid workers who are often subject to exploitation.

Government Initiative to Improve the Textile Sector in India

India is a country with a rich cultural heritage and a long textiles tradition. Over the years, India has become an important player in the global textile industry. However, the sector faces several challenges, including high labour costs, low productivity, and a lack of infrastructure. In response to these challenges, the Indian government has launched several initiatives to improve the textile sector. These initiatives include establishing new textile colleges and institutes, developing new technologies, and increasing investment in the sector.

Despite these efforts, the textile industry remains relatively underdeveloped in India. This is largely due to high labour costs and a lack of skilled workers. As a result, many manufacturers rely on low-cost inputs such as cotton imported from China. To address these issues, the Indian government has launched several initiatives to improve the quality of Indian textiles and increase their competitiveness in the global market. TThese initiatives include improving access to financing and training for textile entrepreneurs, creating new marketing channels, and increasing research and development in the sector.In addition, the government is also working to create better infrastructure for the textile industry, such as increased production facilities and better distribution networks. Click to know- Fashion Industry in India.

Also Read:


Back to top button


Remove Adblocker Extension