Anitquated labor laws, duties detrimental for growth of textile industry says AEPC
26 Sep '05
2 min read
With the restriction placed on Chinese textiles and apparels by the US Government, India is better placed to seize this golden opportunity provided certain policy decisions are taken.
Speakling to the media, A Shaktivel, Chairman, Apparel Export Promotion Council (AEPC) said, "Indian exports to those countries have shown 30 and 22 percent increase respectively during the first six months of the year."
Rise in exports at 45 percent and 50 percent respectively, for 'T' shirt and briefs to the US has been recorded this year, and will increase further.
Saktivel adds, "Indian exporters have good opportunity to outsmart China and capture both the U.S. and European market by 2009."
However, he regretted increased age old labour duty laws, drawback, fringe benefit tax and high excise duty on synthetic and polyester yarns and production costs that have led to Indian finished products costing higher than those in international markets.
Besides, he opined that country's neighbours Bangladesh and Sri Lanka got nine percent concessional advantage that harmed the interests of Indian manufacturers, who had to lower prices, as it was a buyers market since the elimination of the textile quota, he said.
Speaking about performance in other related sectors like cotton and blended garments, he said India had inherent advantage due design and quality, but lamented that high production cost, coupled with textile cess, diesel price in the country all in a cascading effect, negated the lower price advantage that Indian manufacturers could easily offer, he concluded.
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