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How is worldwide RMG market faring? How do you see India poised for RMG sector? Which issues shall remain to be worked upon for better performance in the sector?
Ø Global view on RMG sector:
The global textile and apparel trade has grown at a decent pace by around 6% annually in last two decades. The industry has the potential to grow up to US$ 800bn by the year 2015.
Apparels constitute the biggest category of global trade with 60% share.
Ø RMG sector in
The Indian textile and apparel market is estimated to be US$80bn approx. In the last five years the industry has grown at a rate of more than 10% annually. The industry is expected to grow at a much faster pace in the future, as it is fuelled by a strong domestic consumption which is rapidly growing due to brand awareness and increase in purchasing power.
1. Increase in domestic consumption and subsequent opportunity in new markets like
2. Sourcing shift of buyers in US, EU and
3. Opportunity provided by sourcing shift of buyers from
(Contd.)
How is worldwide RMG market faring? How do you see India poised for RMG sector? Which issues shall remain to be worked upon for better performance in the sector?
Ø The key area in which the strategic interventions is needed is the labour issues in the RMG Sector which is adversely hampering the growth prospects:
· Domestic Scenario
Irregular or low payment of wages is common in RMG sector. Basically, the manpower employed in the RMG sector is from the lower income group. They learn the basic concepts of tailoring and work on contract basis / full time basis in RMG factories. With an ulterior motive to have control over the workers, the factory owners suppress the workers with lower wages payment. Workers' agitations, union strikes are frequent phenomenas that occur in the RMG sector. In most of these cases, the government fail to resolve the labour wages problem leading to distrust among workers. This void has been filled by labour unions whose credibility has long been questionable. Increasing productivity is the only mantra to flourish. Therefore, paying more in wage will reward the factory owners by increasing productivity.
As an established industry RMG is capable of implementing this pay hike, and thereby enhancing their competitiveness in world market if rightly supported by requisite government policies and regulations protecting the rights and welfare of the workers.
· Globally
Most of the analysts and business people usually focus on US and EU market dynamisms; there are surely other crucial issues that are appreciably shaping global trade. Particularly in the context of
Further, most countries in
This situation in the global economy should be researched carefully. The government cannot escape its responsibility by merely announcing a minimum wage and letting the law enforcers go after the protesters. To summarize, governments in
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Published on: 20/12/2011
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.