Anand Ramalingam
2004-03-02 19:37:27 UTC
Hopefully this should materialize. Our beloved Coimbatore's forgotten
pillar will be back in business
Anand
/////////////////////////////////////////////////////////////
With the threat of US safeguards on textiles imports from China
looming large, several US companies ranging from Wal-Mart and J C
Penney to Tommy Hilfiger are looking at India as the main
alternative to Chinese apparel.
India also stands to gain in comparison with other South Asian
competitors, Pakistan, Bangladesh and Sri Lanka.
Advantage India
* Large, inexpensive workforce with design expertise
* One of the largest yarns and fabric producers
* Wide range of apparel, strong on home textiles products
* Safety, red-tape, poor infrastructure may not affect sourcing
from India
* Better political climate than competitors like Pakistan,
Bangladesh, Indonesia
These were the key findings of a study by the United States
International Trade Commission (USITC) on the post-quota regime that
comes into effect next January.
The study says India stands to gain because of cheap labour costs,
which are among the lowest in the world and less than half Chinese levels.
Indian apparel manufacturers paid an estimated 38 cents an hour to
labour hired in 2002. Only Indonesia (27 cents) and Mauritius (33
cents) offer cheaper labour.
Workers in Chinese apparel factories were paid 68-88 cents an hour
while those in Pakistan and Bangladesh received 41 cents and 39 cents
respectively.
Wages in the textiles industry estimated at 57 cents an hour were,
however, not as competitive. Workers in coastal China were paid 69
cents an hour while those in the non-coastal areas received 41 cents
and fringe benefits.
Bangladesh (25 cents an hour), Pakistan (34 cents), Sri Lanka (40
cents) and Indonesia (50 cents) were all more competitive than India.
The study said it was not just labour cost that would tilt the scales
in India's favour. US companies say Indian companies were more
transparently and professionally managed, though safety and security
concerns meant that business was done through agents.
US companies also said red tape and poor infrastructure may not
necessarily determine investment and sourcing decisions.
In the case of Pakistan, US companies said that along with safety and
security concerns, they could not source from private mills in
Pakistan that are not funded by World Bank loans for fear that
financing has come from drug money profits.
In Bangladesh, some US companies have cited the use of child labour as
an impediment to sourcing. Civil unrest in Sri Lanka could take its
toll on textiles exports, as it could in Indonesia and the Philippines.
But the USITC cautions that in the long run, exports from India and
China could be affected due to their strong economic growth which will
increase domestic demand for textiles, labour and capital.
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pillar will be back in business
Anand
/////////////////////////////////////////////////////////////
With the threat of US safeguards on textiles imports from China
looming large, several US companies ranging from Wal-Mart and J C
Penney to Tommy Hilfiger are looking at India as the main
alternative to Chinese apparel.
India also stands to gain in comparison with other South Asian
competitors, Pakistan, Bangladesh and Sri Lanka.
Advantage India
* Large, inexpensive workforce with design expertise
* One of the largest yarns and fabric producers
* Wide range of apparel, strong on home textiles products
* Safety, red-tape, poor infrastructure may not affect sourcing
from India
* Better political climate than competitors like Pakistan,
Bangladesh, Indonesia
These were the key findings of a study by the United States
International Trade Commission (USITC) on the post-quota regime that
comes into effect next January.
The study says India stands to gain because of cheap labour costs,
which are among the lowest in the world and less than half Chinese levels.
Indian apparel manufacturers paid an estimated 38 cents an hour to
labour hired in 2002. Only Indonesia (27 cents) and Mauritius (33
cents) offer cheaper labour.
Workers in Chinese apparel factories were paid 68-88 cents an hour
while those in Pakistan and Bangladesh received 41 cents and 39 cents
respectively.
Wages in the textiles industry estimated at 57 cents an hour were,
however, not as competitive. Workers in coastal China were paid 69
cents an hour while those in the non-coastal areas received 41 cents
and fringe benefits.
Bangladesh (25 cents an hour), Pakistan (34 cents), Sri Lanka (40
cents) and Indonesia (50 cents) were all more competitive than India.
The study said it was not just labour cost that would tilt the scales
in India's favour. US companies say Indian companies were more
transparently and professionally managed, though safety and security
concerns meant that business was done through agents.
US companies also said red tape and poor infrastructure may not
necessarily determine investment and sourcing decisions.
In the case of Pakistan, US companies said that along with safety and
security concerns, they could not source from private mills in
Pakistan that are not funded by World Bank loans for fear that
financing has come from drug money profits.
In Bangladesh, some US companies have cited the use of child labour as
an impediment to sourcing. Civil unrest in Sri Lanka could take its
toll on textiles exports, as it could in Indonesia and the Philippines.
But the USITC cautions that in the long run, exports from India and
China could be affected due to their strong economic growth which will
increase domestic demand for textiles, labour and capital.
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for your HP, Epson, Canon or Lexmark
Printer at MyInks.com. Free s/h on orders $50 or more to the US & Canada.
http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/mOAaAA/3exGAA/qnsNAA/0EHolB/TM
---------------------------------------------------------------------~->
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/iluIndia/
<*> To unsubscribe from this group, send an email to:
iluIndia-unsubscribe-***@public.gmane.org
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/