Earlier quoted context omitted.
But if they literally have free clothing, doesn't it make that local industry useless? Literally provides no value at that point. This only seems like a problem to me if people literally can't provide value in any other way. To which the solution would seem to create a new type of industry, not create an artificial need by creating a clothes penury on purpose.
In isolation, yes. It is better for the locals to get clothes for free than for local resources (whether capital or labour) to be expended to produce them locally. But having a strong textile manufacturing industry promotes the development of other adjacent industries (e.g. dyes, chemicals) that would not be able to stand on their own initially, and can output products that are useful to more than just textile manufa…
In no way is being poorer the solution to not being able to afford things.