The New Nation - Internet Edition

Staff Reporter

Indian readymade garment export has marked 13 per cent lower this year facing tough competition of emerging markets like Bangladesh, Cambodia, Indonesia and Vietnam, industry players said.

Moreover, appreciation of rupee against US dollar has deepened the crisis, they added.

"The scenario is pathetic. We are already down by 13 per cent over the last year. In terms of rupee revenue, each dollar is giving us 11 per cent less than what we were earning a year back," Rakesh Vaid, Chairman of Indian Apparel Export Promotion Council told CNBC-TV18.

Recently, the garment industry has been hit hard by the appreciating rupee but the exporters have decided that they are going to go beyond sops and beyond Budget 2008 to focus on lasting competitiveness and bring about labour reforms.

Rakesh Vaid said the industry is going through a phase where they are losing money and laying off people.

Deepika Rana, Country Director of Li & Fung said there is a huge pressure on prices, which the Indian exporters are finding very difficult to compete especially with emerging markets like Indonesia, Cambodia, Bangladesh, Vietnam.

"Therefore we are seeing a lot of our business move out of the country either with our own exporters setting up manufacturing basis in those countries or with us sourcing over there," she added.

Sudhir Dhingra, Managing Director of Orient Craft has a view that the Indian garment industry needs a boost to survive.

Gautam Nair, Managing Director of Matrix Clothing said there should be a National Minimum Wage Board, which will look after interest of workers in the apparel manufacturing sector which will enable India to compete with countries like Bangladesh.

Hari Kapoor, Executive Council Member of AEPC said that a forum should be setup of all the concerned authorities who are involved in the export trade and manufacturing to come to a conclusive solution.