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AEPC says wage hike unfeasible

AEPC feels the minimum wage proposals for the garment industry are unrealistic. The plan is to fix the minimum wage at Rs 18,000 (US$280) a month.

AEPC says this will make garment manufacturing nonviable and unsustainable. This high minimum wage would not only adversely affect exports but also lead to a fall in employment generation in the sector.

The confusion over the issue of minimum wages, says AEPC, has impacted the booking of export orders and to restore the confidence of foreign buyers it’s necessary to clarify matters.

The cost of wages in India’s garment export sector is around 30 per cent of FOB. Around 70 per cent of the workforce in the readymade garment industry comprises women while other industries have a participation of women between three per cent and seven per cent.

India’s garment exports during July 2017 fell 11.86 per cent in dollar terms as against July 2016 and the growth trajectory of 31.72 per cent achieved during April 2017 has now been limited to 5.94 per cent in the period April to July 2017.

Incorporated in 1978, the Apparel Export Promotion Council is the official body of apparel exporters in India. It provides assistance to Indian exporters as well as importers and international buyers who choose India as their preferred sourcing destination for garments.

 
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