Labor laws affecting apparel industry

By agencies   |   Friday, 23 September 2005, 07:00 Hrs
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TIRUPUR: Indian apparel exports to the U.S. and Europe has increased after they imposed safety measure clause on Chinese textiles.

Indian exports to those countries have shown 30 and 22 percent increase respectively during the first six months of the year, Apparel Export Promotion Council (AEPC) Chairman, A Shaktivel has said.

The export of 'T' shirt and briefs to the U.S. has shown a 45 percent and 50 percent increase respectively and if this tendency continued, Indian exporters have good opportunity to outsmart China and capture both the U.S. and European market by 2009, Shaktivel said.

He however said that due to the increased duty drawback, fringe benefit tax and high excise duty on synthetic and polyester yarns, production costs have increased resulting in the higher price for the finished products in India.

Moreover, nine percent concessional advantage given to the neighboring Bangladesh and Sri Lanka was affecting Indian manufacturers, who were forced to reduce the prices, since the buyers have started dictating terms in the quota free regime, Shaktivel said.

Though India was doing better in cotton and blended garments, upper hand in design and quality, high production cost, including textile cess, diesel price in the country was totally affecting the price advantage compared to other countries, he added.

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