According to a press release from the Apparel
Export Promotion Council (AEPC), the council’s Chairman, Premal Udani
has requested the government’s support in terms of higher duty draw back
rates to offset cost disadvantages in India…Udani also urged
the government for a faster implementation of the Indo-EU FTA. This
FTA’s has a potential of increasing India’s textiles and clothing
exports to the European Union by over 3 billion dollar. It will also
create an additional 2.5 million jobs in our economy…The first
two months of the current financial year have shown 5.23% decrease in
rupee term, as compared to the previous year. Exports of apparel are
highly price sensitive, according to Udani…The unprecedented
rise in price of raw materials (cotton & yarn) over the past few
months and also general increase in all other costs due to hike in duty
of petroleum products has made Indian garments uncompetitive in the
world market…While our exports are falling, exports from low
cost countries, such as Bangladesh, Vietnam, Cambodia continue to rise
added Udani. Bangladesh today exports almost USD 13 billion of apparel.
This is roughly 20% more than Indian garment exports…However,
Udani has welcomed the government’s initiatives in the skilled
development area. The ready made garment industry is the second largest
employer, after agriculture in the country. ..Recently the
government through its skilled development initiatives is seeking to
fund the ATDC (Apparel Trading & Design Centers) initiatives of AEPC
to develop skilled man power for this sector…Currently the
apparel sector employs 6 million people directly and 3 million people
indirectly. 50% of the work force is women. With the right government
policies, this sector has the capacity to absorb another 5 million
workers directly within the next 3 years.
Date:7/12/2010
Source:Reuters