Stringent labour laws affect exports of textiles & leather

12 Mar '07

3 min read

Mr Khorakiwala emphasised the need for providing additional stimulus for exports of these labour-intensive sectors and also to address some policy issues like reforming labour laws, SSI Dereservation, High transaction cost and Infrastructure bottlenecks.

FICCI pointed-out that stringent domestic labour laws are affecting the exports of sectors like textiles and leather and in order to tap the full export potential of these sectors, there is a need to introduce labour flexibility in these sectors.

FICCI further said that States should provide infrastructure support like power etc for these sectors at competitive prices.

For instance, FICCI observed that recently a group of textiles mills decided to invest in Andhra Pradesh which has assured them of a dedicated line from the main grid and power supply at a special rate for 5 years (the rate offered by Andhra Pradesh is around Rs 2.5 per unit compared to Rs 4.2 per unit in Tamil Nadu).

Further, proper connectivity of textile and leather clusters with ports and airports, will reduce the cost of domestic transportation, which at times is higher than the cost of transportation to international destination. FICCI feels that cheaper export credit for these labour-intensive sectors would also help in increasing their exports.

Federation of Indian Chambers of Commerce and Industry

More Federation of Indian Chambers of Commerce and Industry News... More Textiles News - India...