A Study of Subcontracting in the Garment Industry in Gurgaon
It is common knowledge that labour intensive industries engage in subcontracting or outsourcing of production, though in varying degrees, depending on the nature of the industry. From our interaction with workers in the garment industry, it has been learned that in the last half a decade, the subcontracting in the garment industry in Gurgaon has been maturing as a common practice.
Subcontractors have become an integral part of the export oriented garment industry in Gurgaon and they contribute significantly to sustain the business cycle the Indian suppliers face by providing the extra shop floor space required to produce more during the peak seasons, and by absolving the Tier 1 companies from the legal liability of keeping a regular workforce and by assisting the Tier 1 companies to adhere to the lean manufacturing principles.
Subcontracting is taking place in the garment industry in a discreet manner (the agencies or entities which are getting the subcontracted work are not registered as factories, or micro/small/medium enterprise, or contractor/ subcontractor under any of the Laws) and thus making this invisible in the eyes of law.