Sector Pulse
G. Siva Sundara Ganesan
G. Siva Sundara Ganesan
Executive Director
Great Supports

‘Grey areas in the labour legislation are obstacles for the industry’


Company Details

Business Area:
Auditing and inspection

 

How important is compliance in the textile value chain of India? What is the role played by Great Supports in promoting compliance in the textile value chain?

Textile products which are being sourced from any country prefer the supplier to be in compliance to social standards.  So whenever the brands or importers decide to source from India, they also expect the suppliers or exporters to be in compliance to social compliance standards.  If textile exporters want to have a stabilized business with good importers or brands, they should implement and follow the social compliance standards accurately. It is important because any deficiency or default in the labour practices will directly affect the image and respects of brands or importers among customers all over the world. This will ultimately affect the business of the brands.

The social compliance standards primarily look into the interest of the labor. Export markets bring a huge employment opportunity to the country. The exports markets will perform well only when the compliance standards are fulfilled by the industries. Thus, the industrial growth is the main concern for the country as this is a main growth of economy as well as it brings forex directly. It is evident these days that the importers and brands avoid or reject business with factories or suppliers who are not in compliance with the social compliance standard.

In India, there are a huge number of exporters all over the country like home furnishing/dhari at Punjab, Haryana, Utter Pradesh; metal wares and glassware from Moradabad; leather, jute products from Kolkata; textiles, diamond, gold from Gujarat; multi products range from Mumbai, Maharashtra; pharmaceuticals, artificial jewellery from Andhra Pradesh; garments from Bangalore; textiles, garments, hosieries, leather from Tamil Nadu; and coir products from Kerala.  However, each industry has different problems in technology and support from the government. The main issues faced by industries are pollution control board clearance which requires cost implication and practical difficulties. Some issues like health and safety are not practically cared for by certain group of exports and hidden subcontracting due to compliance standards auditing. Grey areas in the labor legislation are obstacles for the industry. Continuous support in terms of knowledge to the industry, provisions in terms of common issues like pollution, and clarity in the legislation which is grey are required to improve the scenario in the country.  This is all only possible by government private joint working groups.

In the export segments of textile products, social compliance standard plays an important role. Importers and brands required the exporters to be in compliance to the social compliance standards. The knowledge of social compliance is very vast and should be updated. Great supports services the brands and the importers by providing the service of third party auditing. The same time we provide the knowledge of the social compliance standard to the industry also which is crucial because only when the exporters understand the social compliances standards profound they can able to make the factory to be ready for social compliance audits by brands or third party.  We also provide the third party self audit services to the factories so that they measure themselves the standards of social compliance.  The difference we make is we support only transparent straight ideology.

Published on: 18/09/2014

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.

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