Exports In The Garment Sector Drop By Over 20%

The largest employer, plus the most lucrative industrial segment in Gurgaon, the garment sector is going through tough times these days. According to analysts, exports to countries in Europe have fallen by as much as 20%, and to the USA, the other big market, by around 8%. The Apparel Export Promotion Council (AEPC) which is headquartered here, has now issued a set of recommendations, which, it claims, can effectively remedy this decline.

The AEPC proposal, which is addressed to the department of commerce of the government of India, promises to enhance the export business by 10% by 2013, and by '100% in the next three years.'

"On behalf of the garment and textile exports our proposal was submitted to S R Rao, the commerce secretary," said A Sakthivel, chairman, AEPC. The council has proposed that cotton yarn and fabric 'be permitted imports without license at flat fixed customs duty rate.'

"Under this proposal, the procedural hurdles that are faced by the SMEs will get solved," said Sakthivel. The garment sector employs over 7 lakh people in Gurgaon alone, most of them migrants from states like UP, Bihar and West Bengal. Although no official figures are available as to the extent of job losses suffered here, but the damage, according to industrialists has been far reaching. "Export units have been in a bad way ever since the 2008 recession in the US. And this has had a direct bearing on manufacturers also, which is resulting job cuts and downsizing all through," said a firm owner in Udyog Vihar.