Prime Minister Narendra Modi’s inauguration of Arvind Ltd.’s new garment factory in Varanasi on Sunday was more than a high-profile opening. For the Indian textile and apparel conglomerate, the 1.5 billion rupee ($15.7 million) investment represents a push into finished-garment manufacturing; for the industry, it comes at a time when geopolitical uncertainty and shifting trade relationships are reshaping the global apparel supply chain.

The inauguration also underlined the close ties between business and politics. Varanasi is the prime minister’s constituency and a city known for its ancient traditions of weaving and embroidery. Here, the future is notable as it arrives to build on tradition.

The facility is spread across 5.5 acres with a total built up area of approximately 65,000 square feet. It will manufacture knitwear products using advanced automated sewing technologies and production systems. The textile-to-retail conglomerate said it is designed to “enhance productivity, ensure consistent quality and support scalable manufacturing operations.”

Arvind said the factory has the revenue potential of $26 million and is expected to generate employment for over 1,000 people, predominantly women. Additionally, Arvind has established dedicated worker hostels to support employees and plans to further expand residential infrastructure as operations grow.

The new facility will play a key role in Arvind’s vertical integration strategy. It also adds much needed garment manufacturing capacity to the country’s large “textile heavy” landscape—which will help meet demand from the European market when a new free-trade agreement is expected to be signed in December.

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