Contract labour norms should be liberalised for textiles and garments so that units can hire labourers for a few months without the compulsion of having to absorb them permanently.
Infrastructure and power sector reforms should be undertaken at a highd spped to facilitate the smooth functioning of the industry.
India has high energy and capital costs, multiple taxation and low productivity, all of which add to production costs. As a result, textile and apparel products from India are less competitive than those of China and other developing countries.
The Paper points out that there are opportunities as well as threats for the Indian textile industry in the post-MFA era.
India has inherent strengths which can be capitalized on strong raw material base of cotton, man-made fibers, jute, silk, large production capacity (spinning 21% of world capacity and weaving 33% of world capacity) vast pool of skilled manpower, entrepreneurship, flexibility in production process and long experience with US, EU. Click here to read more details:
The Associated Chambers of Commerce and Industry of India
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