However, post-quota growth in our apparel exports remained so far below
our potential and expectations because of various disability factors.
Mr.Vaid said, the increasing input cost, tight credit policy and high
interest rate, severe liquidity crunch, rigid and outdated labour laws,
poor infrastructure and high transaction cost, high power cost and
frequent power cuts and increasing cost of wages are some of the
difficulties being faced by exporters which should be mitigated to the
extent possible and a long term solution should be finalized for the
efficient functioning of exporters. .

Mr.Vaid pointed out that global meltdown has increased the international
competition and reduced the demand of garments due to slowdown in the
world economy especially in the USA, EU and Japan which contribute to
almost about 80 per cent of our exports. The recent steep hikes in
fabric prices have also affected the competitive strength and
performance of Indian Apparel Industry..

Mr.Vaid said, although there are signs of some improvement but the
global economic outlook still remains difficult and the performance of
our economy will be affected by the continuing global slowdown and
domestic inflationary pressure..

The Labour-intensive garment export sector needs special consideration
as it adds maximum value to the exported products using over 95 per cent
indigenous materials. As the international apparel market has become
highly competitive the government must reduce the transaction cost and
grant necessary fiscal and commercial relief to the garment exporters to
enable them to face the increasing international competitiveness..

Garment manufacturing is extremely labour intensive and will remain so
even with greater automation. A congenial labour environment is,
therefore, necessary to ensure maximum productivity. The obsolete and
antiquated labour legislation has hindered the growth of the extremely
labour intensive garment manufacturing. The restrictive industrial and
labour laws restrain the management’s capability to respond
professionally, effectively and speedily to the fast changing dynamic
international textile scenario. The Government should, therefore,
introduce labour norms specific to garment manufacturers and exporters
to enable them to meet the increasing international competition. ”