The labor unrest in the ready-made garments sector in Bangladesh has put Indian apparel exporters in an advantageous position.
"Bangladesh is not the sole reason for this upswing. Both the US and Europe are slowly recovering from the economic slowdown which is getting reflected in the order position. Units in Tirupur remained underutilized due to the recession that had gripped the US and Europe. But now the situation has improved and the units are flooded with orders," Sanjay Kumar Gupta, CEO, Tirupur Exporters Association told the newspaper.
K Selvaraju, secretary general, Southern India Mills Association, added, "Not only the US and Europe, even China is picking up good volumes of yarn, textiles and fabrics from India. So the textile industry in the country is in a good position right now".
Bangladesh has just revised wages of its garment workers which has put Bangladesh roughly in the same league with apparel exporters from India, Sri Lanka and Cambodia. This will make Bangladesh less competitive in the world markets.
HKL Magu, senior vice-chairman, Apparel Export Promotion Council told the ET, "Earlier, there was a gap of 20% in cost component between Bangladeshi and Indian apparel exporters. But with rising wages, that gap is expected to narrow down. Indian apparel exporters are now overbooked with orders for the upcoming summer season.
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