Indian textile and garment industry comprises around 8000-10,000 garment exporters and supplies. 20% of value addition in the manufacturing sector is contributed by textiles, with export earnings of more than 28%. The Indian textile sector contributes to approximately 4% of GDP. Currently, the Government has declared that the European Union (EU) is raising non-trade barriers against India's textile and apparel exports. This has placed the apparel exporters in doldrums.

Earlier, during 2008, the EU and the US, hit by recession, had restricted their imports. Due to this, India, their primary exporter, saw a decline in the export figures. Apparel exports were below potential due to shrinking demand in the major world markets. Later, during 2009-10, an improvement was seen in the Western economies. Now, the EU is restricting the import of Indian textiles and apparels through non-tariff barriers.

There is always an environmental impact in the production of textiles starting from the usage of pesticides for cultivation of natural fibers until the completion of a garment. Till the apparel reaches its final stage of production, numerous chemicals are being used. The EU has banned the import of apparels into the country that contains chemicals that are proved to have a serious effect on the environment.

Clothes with these chemicals, when washed, discharge harmful substances into the water system, thereby polluting the environment. The EU has banned the production of these chemicals and has also restricted clothes being imported into the country, which has these chemicals on them. The textile products entering into the EU market are subject to security and consumer protection requirements identical to those for the textile products manufactured inside the EU.

The Minister of State for Commerce and Industry, Jyotiraditya Scindia, in a written reply to Rajya Sabha, states that the EU has been raising protective barriers against textiles and garments exports from India through non-tariff barriers such as labeling, certification, and REACH (Registration, Evaluation, Authorization, and Restriction of Chemical substances).

Textile and apparel exports from India are mainly done through developed countries such as the US, EU, Japan, and UAE. The US and EU comprise about three-fourths of the total exports market for Indian apparels.

To ensure that the exports are not restricted in the European market, Commerce and textiles ministry is raising the issue of protective barriers in the EU-India sub-commission on trade. Minister Jyotiraditya Scindia states that the ministry is also planning to discuss in the meeting of EU-India Joint working group on textile and clothing. The Textiles Ministry plans to implement a common compliance code which includes all compliance issues. This code would be based on international standards with a global monitoring, evaluation, and endorsement. It would also include guidelines for guidelines for implementing the code. These norms would make the textile and apparel sector stronger.

Furthermore, exporters are now attempting to seek alternatives like newer export markets, or domestic retailers. Apparel sector will consider options for new markets like Latin America, Japan, Middle East, and Australia. But these markets are not big comparatively over the US and EU markets.


References:


1.      news.in.msn.com

2.      Eur-lex.europa.eu