Easy laws help Chinese textile exporters

Flexible labour laws have helped Chinese textile industry grow faster in the WTO regime, said industry experts here on Wednesday.

Jayant Parimal, IAS, Commissioner Trade and Commerce, Gujarat, said: "According to industry data, Chinese exports to the US is almost 200 per cent higher than the Indian exports. While the Indian textile industry expects a five per cent increase in export in the coming years, China is growing at a much higher speed."

Parimal said that Indian industry is witnessing higher investment. Apparels and cotton and blended yarn are attracting new investment, he added.

M M Gharia, director of Ahmedabad Textile Industry's Research Association (ATIRA) said, "The reduction in excise duty on polyester filament from 24 per cent to 16 per cent will boost the textile industry, but the weavers would not benefit if duty cut is not passed on to them by the spinners."

Gharia said the growth of the industry in the state will depend on the availability of quality electricity at low cost.

"Textile processors have asked the state government to reduce power charges and low cost, good quality electricity."

The state budget for 2005-06 has proposed a reduction in electricity duty for high tension consumers from 20 to 15 per cent, but electricity duty for high tension consumers should be reduced to 10 per cent to boost the textile industry, he said.