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Related Keywords: Amended-Technology Upgradation Fund Scheme, attract investment, bring in flexibility in labour laws, Chinese textile and apparel industry, cleared special package for textile and apparel sector, create million new jobs, deal with rising competition, Fixed term employment, generate exports, increase subsidy, Union Cabinet

The Union Cabinet on Wednesday cleared a Rs 6,000 crore special package for the textiles and apparel sector with an aim to deal with the rising competition from China’s textile and apparel industry. The move, according to the government, would create 10 million new jobs in the next three years, in addition attracting investments of $11 billion and generating $30 billion in exports. The decision was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi.

Related Keywords: adapting to new normal, biggest markets the United, China imports textile and apparel products, Chinese textile and apparel industry, losing competitive edge in mass production, number one contributor to China’s foreign trade, production and labor cost, reality of slower growth rates, rising dramatically, Textile Industry Chamber of Commerce

With China’s production and labor costs in the textile and apparel industry rising dramatically and exceed those in of many other Southeast Asian countries, including Malaysia, the Philippines, Indonesia and Vietnam is the cause of China losing the competitive edge in mass production. China is changing its strategy by adapting to ‘new normal’.

Related Keywords: Asean, China National Textile and Apparel Council, Chinese textile and apparel industry, dyeing and printing enterprises., sales and exports growth, social responsibility, sustainable development, wool and flax spinning

The textile and apparel industry of China is determined to fight back the trend by becoming more efficient, innovative and environmentally friendly, although textiles and apparel industry growth in sales and exports has slowed down from January to July by 1.5 percentage points and 1.2 percentage points, respectively.

Also many labor-intensive manufacturing industries in China have declined with the country's economic slowdown, as per the industry's 2013-2014 social responsibility report.