Home / Knowledge / News / Apparel/Garments / 'Expect more job losses April onwards' – Mr Vaid, AEPC
'Expect more job losses April onwards' – Mr Vaid, AEPC
Feb '09
Mr Rakesh Vaid, Chairman, AEPC
Mr Rakesh Vaid, Chairman, AEPC
The Bangladesh garment industry was in the news recently, on their achievement in overtaking India in apparel exports to the US. This news has come on the back of a negative growth rate reported by the RMG industry in the last few months, with the sector now feeling the real pinch.

The garment manufacturing industry is very labour intensive and nearly 500,000 workers from the industry have already lost their jobs since the unfolding of the economic crisis in September, last year and the percentage of layoff is projected to increase substantially in the coming months according to most of the trade associations.

Mr Rakesh Vaid, who is the Chairman of the Apparel Export Promotion Council (AEPC), which represents the interests of over 6,600 apparel exporters said, “Shipments to the US and the EU, which constitute about 77 percent of apparel exports from the country have been hit hard by the global recessionary trends”.

He added by saying that, “till now the exporters had been cushioned by the fall of the rupee against the dollar, which depreciated by 18 percent in 2008, but with eroding margins and pricing pressures leading to a fall in per unit prices, the situation is expected to turn grim in the coming days”.

Mr Vaid was categorical, when he said, “business from the overseas buyers is shifting to Bangladesh and Vietnam on the strength of their lower operating costs who are quoting discounts of 12-15 percent, mainly due to lower labour costs and taxes in those countries”

He had a note of warning when he said that, “Order books of Indian companies was running thin and if things do not improve by then, massive layoffs can be expected April onwards", and asked the government to raise export draw back duties to make the sector more competitive in the global arena.

Mr Monteksingh Ahluwalia, Deputy Chairman of the Planning Commission, came to the rescue of the garment sector, when he observed that the government needs to take urgent measures to help the apparel industry.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Alibaba Group

Apparel/Garments | On 18th Jan 2017

Alibaba forges global alliance to fight counterfeiting

Jack Ma led Alibaba Group has forged an alliance with various global...

Apparel/Garments | On 18th Jan 2017

HanesBrands earns above average scores in CDP 2016

Global apparel and innerwear retailer HanesBrands said it has...

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search