Phase II Ensure that the Economy stays active:

• Speed up SEZ approvals especially those that carry higher FDI component.
• Remove Tax for the next 2 years on essential commodities (if Government can introduce cess they can consider doing a reverse cess under these extraordinary conditions).
• Reduce diesel, and railway freight price.
• Increase procurement price for all farm products.
• Ensure liquidity in the market which it is doing in any case.
• Fund flow to the SME sector should not slow down this could be considered through SME consortium whetted for all parameters.
• Establish a special Public Procurement System to enable SMEs partake of Government business this will offer a level playing field for the SME while competing for Government tenders.

Phase III Increase consumers spend:

• Use fiscal and non-fiscal measures to increase consumer spend.

F2F also had a chance to speak with Mr. Rajendra Hinduja, Director, Gokaldas Exports. While no industry player seems comfortable to speak about the job cuts, Mr. Hinduja said that they have no plans for layoff.

 

• Next, F2F asked him about India's stand in Job losses compared to its overseas peers.

 

"As regards job losses of India vs. other countries, I think China and Pakistan are in a bad shape, worse than India. Bangladesh has fared better because of its cheap prices and cheap labor costs".

 

• F2F: What according to you is the support required from government to overcome this situation?

 

"I think the government should immediately restore the facilities offered, before September, '08, i.e.

    

• Subvention of 4% in the bank interest.
• Duty Drawback level should be increased to the rates prevailing before September,'08.
• Longer duration of credit should be allowed by the bankers to the exporting community.

 

These are the 3 immediate steps the government should take."

 

With layoffs of the existing employees, and a freeze in the hiring of new staffs, job security becomes a meaning less word. Despite the Government saying that Indian economy is firm, the naked truth is that thousands of people have already lost their job. In the wake of the global crisis, Indian Government is also taking initiatives from its side to strengthen the textile sector. If the global economy does not pick up, more pink slips could be expected in the forthcoming months.

 

References:

 

1. "Apparel exporters start firing workers on US woe", Apparel Views, Vol-VII, Issue 11, November 08.
2. "Global meldown hits fashion and textile industry", New Delhi Bureau, Images Business of Fashion, November 08
3. http://timesofindia.indiatimes.com
4. http://www.thestatesman.net
5. http://www.ndtv.com
6. http://ibnlive.in.com