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GDP likely to grow at a slower pace

30
Dec '08
As the sales growth during the current year is not up to the expectation due to gloomy outlook of the global financial meltdown, many garment manufacturers are forced to slash their production, retrench workers. Even retailers are combating the recession by reducing the sourcing of garments.

Market analysts say that India's gross domestic product is anticipated to grow at a lower pace of 6.5 percent in comparison to an earlier estimate of over 7.5 percent.

Speaking to Fibre2fashion.com, Mr Devkishan Manghani, General Secretary of Federation of Surat Textile Traders Association (FOSTTA) said, “India is not much affected compare to other countries. But domestic market is bit weak. Presently 15 – 20 percent domestic market is weak.”

FOSTTA has requested enterprises not to cut jobs until any serious situation. Few companies have reduced their working hours from 12 to 8 hours and some have shorten from 24 to 15 hours. Embroidery companies have presently stopped night shifts.

“Around 30 percent sales have gone down in Gujarat and up to 40 – 50 percent sales are expected to go down. Although there is no job cut till now in Gujarat, companies have trimmed down their working hours,” said Mr Bhimaraj Pawar, President of Gujarat Garment Manufacturers Association (GGMA), reiterating on the similar line.

However, Mr Pawar was not so sure of the current scenario to normalize very soon and stated, “2009 will be tight situation for textile and garment sector. Effect will be seen more in domestic market than exports.”

Discussing about competition from foreign retailers and brands in the Indian market, the GGMA President said, “We, Indian manufacturers and retailers will be leading them in our domestic market. We are having quality goods and competitive price. In India, 80 – 90 percent buyers are purchasing garments looking through rates and only 10 percent people go for quality and rate. So in terms of quality or price, they can never beat us.”

Fibre2fashion News Desk - India


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