West Bengal Garment Industry & the Informalization Process

Although much of the manufacture of garments is located in South India, West Bengal has a sizeable garment industry generating annually about Rs 720 crores in wage income. It is virtually an iceberg, with a small registered and formal portion and a vast unregistered and submerged informal portion. The informal part does not necessarily cover only tiny, family based units, but many manufacturers operating several machines which technically qualify for registration under the Factories Act. Outsourcing, fragmented manufacturing process, and a complex network of small units, with a single garment passing back and forth among them, characterize this industry. Wages are below the minimum wage level, and there is little unionization in the industry.