Re: Textile outsourcing?
Yamanoor Srihari <yamanoor-/[email protected]> Wed, 3 Mar 2004 21:53:36 -0800 (PST)
| Newsgroups | gmane.culture.region.india.general |
|---|---|
| Message-ID | <[email protected]> |
--0-876075438-1078379616=:96197 Content-Type: text/plain; charset=us-ascii Sounds very interesting. Hopefully, people at Coimbatore will catch up on such things! Srihari Anand Ramalingam <anand_ramalingam-/[email protected]> wrote: 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. Yahoo! Groups SponsorADVERTISEMENT Click Here --------------------------------- 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: [email protected] Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. La vie.. http://www.stanford.edu/~yamanoor http://yamanoor.tblog.com --------------------------------- Do you Yahoo!? Yahoo! Search - Find what youre looking for faster. --0-876075438-1078379616=:96197 Content-Type: text/html; charset=us-ascii Content-Transfer-Encoding: 8bit <html><body> <DIV>Sounds very interesting. Hopefully, people at Coimbatore will catch up on such things!</DIV> <DIV> </DIV> <DIV>Srihari</DIV> <DIV><BR><BR><B><I>Anand Ramalingam <anand_ramalingam-/[email protected]></I></B> wrote:</DIV> <BLOCKQUOTE class=replbq style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff 2px solid"><TT>Hopefully this should materialize. Our beloved Coimbatore's forgotten<BR>pillar will be back in business<BR><BR>Anand<BR>/////////////////////////////////////////////////////////////<BR><BR>With the threat of US safeguards on textiles imports from China<BR>looming large, several US companies ranging from Wal-Mart and J C<BR>Penney to Tommy Hilfiger are looking at India as the main<BR>alternative to Chinese apparel.<BR><BR>India also stands to gain in comparison with other South Asian<BR>competitors, Pakistan, Bangladesh and Sri Lanka.<BR><BR>Advantage India<BR><BR> * Large, inexpensive workforce with design expertise<BR><BR> * One of the largest yarns and fabric producers<BR><BR> * Wide range of apparel, strong on home textiles products<BR><BR> * Safety, red-tape, poor infrastructure may not affect sourcing<BR>from India<BR><BR> * Better political climate than competitors like Pakistan,<BR>Bangladesh, Indonesia <BR><BR>These were the key findings of a study by the United States<BR>International Trade Commission (USITC) on the post-quota regime that<BR>comes into effect next January.<BR><BR>The study says India stands to gain because of cheap labour costs,<BR>which are among the lowest in the world and less than half Chinese levels.<BR><BR>Indian apparel manufacturers paid an estimated 38 cents an hour to<BR>labour hired in 2002. Only Indonesia (27 cents) and Mauritius (33<BR>cents) offer cheaper labour.<BR><BR>Workers in Chinese apparel factories were paid 68-88 cents an hour<BR>while those in Pakistan and Bangladesh received 41 cents and 39 cents<BR>respectively.<BR><BR>Wages in the textiles industry estimated at 57 cents an hour were,<BR>however, not as com petitive. Workers in coastal China were paid 69<BR>cents an hour while those in the non-coastal areas received 41 cents<BR>and fringe benefits.<BR><BR>Bangladesh (25 cents an hour), Pakistan (34 cents), Sri Lanka (40<BR>cents) and Indonesia (50 cents) were all more competitive than India.<BR><BR>The study said it was not just labour cost that would tilt the scales<BR>in India's favour. US companies say Indian companies were more<BR>transparently and professionally managed, though safety and security<BR>concerns meant that business was done through agents.<BR><BR>US companies also said red tape and poor infrastructure may not<BR>necessarily determine investment and sourcing decisions.<BR><BR>In the case of Pakistan, US companies said that along with safety and<BR>security concerns, they could not source from private mills in<BR>Pakistan that are not funded by World Bank loans for fear that<BR>financing has come from drug money profits.<BR><BR>In Bangladesh, some US companies have c ited the use of child labour as<BR>an impediment to sourcing. Civil unrest in Sri Lanka could take its<BR>toll on textiles exports, as it could in Indonesia and the Philippines.<BR><BR>But the USITC cautions that in the long run, exports from India and<BR>China could be affected due to their strong economic growth which will<BR>increase domestic demand for textiles, labour and capital. <BR><BR></TT><BR></BLOCKQUOTE><BR><BR><DIV> <DIV> <DIV><FONT color=darkblue> <P align=left>La vie..</P> <P align=left><A href="http://www.stanford.edu/~yamanoor">http://www.stanford.edu/~yamanoor</A></P> <P align=left><A href="http://yamanoor.tblog.com">http://yamanoor.tblog.com</A></P> <P align=left> </P> <P align=left> </P></FONT></DIV></DIV></DIV><p><hr SIZE=1> Do you Yahoo!?<br> Yahoo! Search - <a href="http://search.yahoo.com/?fr=ad-mailsig-home">Find what youre looking for faster.</a> </body></html> --0-876075438-1078379616=:96197--