China, Bangladesh scoring over India in competitiveness in apparel sector
Updated: May 12, 2014 02:05:09pm
New Delhi, May 12 (KNN) India's close competitors in the apparel export sector- China, Bangladesh and Vietnam, have been able to make it bigger by the easier import policies, whereas high cost and shortages of power and export credit coupled with stringent labour laws are the major inhibiting factors for Indian exporters, according to an industry body.
“India is 7th largest apparel exporter in global market with 3.2 per cent share in global exports. China, Bangladesh and Vietnam are the other large developing suppliers in global market who have been able to make it bigger by easier import policies,” Chairman of Apparel Export Promotion Council (AEPC), Virender Uppal said.
A number of inhibiting factors such as stringent labour laws, compliance issues, short production cycles to capture markets for all seasons, simplification of export procedures, mitigating power cost disadvantage, high export credit, tariff disadvantage, etc were prime reasons for inhibiting the growth, he said.
Therefore was responsible for the present level of performance in the last fiscal, despite best push made by industry, he added.
Ongoing growth pattern was unexpectedly high when we look at the previous trend which has occurred purely on the account of rupee depreciation; however, increasing labour cost in China, non-compliance of Bangladesh factories may help India to get more business as overseas buyers are looking at India as safe and reliable option for the sourcing, he said.
Reacting on the apparel exports data, for the month of April 2014-15, Uppal said that, “This is the first month of the 2014-15 and Apparel Exports have recorded the growth of 14.33 per cent compared to the April month of last financial year.
The export for April 2014-15 is to the tune of USD 1.3 billion compared to US $ 1.1 billion in the 2013-14 over April month of the previous year.”
“AEPC has been aggressively advocating for such measures from time to time, including easier imports of fabrics of consistent quality standards at competitive price,” he added.
“I have raised number of issues related to procedural simplifications for smoothing out the trade which can be done without much financial implications or changes in policy,” Chairman AEPC underlined adding that the sector hopes for an industry friendly Foreign Trade Policy from the new government. (KNN Bureau)
“India is 7th largest apparel exporter in global market with 3.2 per cent share in global exports. China, Bangladesh and Vietnam are the other large developing suppliers in global market who have been able to make it bigger by easier import policies,” Chairman of Apparel Export Promotion Council (AEPC), Virender Uppal said.
A number of inhibiting factors such as stringent labour laws, compliance issues, short production cycles to capture markets for all seasons, simplification of export procedures, mitigating power cost disadvantage, high export credit, tariff disadvantage, etc were prime reasons for inhibiting the growth, he said.
Therefore was responsible for the present level of performance in the last fiscal, despite best push made by industry, he added.
Ongoing growth pattern was unexpectedly high when we look at the previous trend which has occurred purely on the account of rupee depreciation; however, increasing labour cost in China, non-compliance of Bangladesh factories may help India to get more business as overseas buyers are looking at India as safe and reliable option for the sourcing, he said.
Reacting on the apparel exports data, for the month of April 2014-15, Uppal said that, “This is the first month of the 2014-15 and Apparel Exports have recorded the growth of 14.33 per cent compared to the April month of last financial year.
The export for April 2014-15 is to the tune of USD 1.3 billion compared to US $ 1.1 billion in the 2013-14 over April month of the previous year.”
“AEPC has been aggressively advocating for such measures from time to time, including easier imports of fabrics of consistent quality standards at competitive price,” he added.
“I have raised number of issues related to procedural simplifications for smoothing out the trade which can be done without much financial implications or changes in policy,” Chairman AEPC underlined adding that the sector hopes for an industry friendly Foreign Trade Policy from the new government. (KNN Bureau)
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