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An inter-ministerial group is working to extend flexibility in existing laws to boost exports in the garments sector. Sources said reforms in crucial labour laws, as well as short-term stimuli, were high on the group's agenda.
The group might consider tweaking labour laws to make the sector competitive and providing interest subvention (as the working capital requirement of garment manufacturers is much more than the fixed capital requirement).
The Centre had set up the group to propose measures to raise textile and garment exports 30 per cent, compared to last year. The group would give its report by mid-August.
As India lost a vital edge over Bangladesh and Vietnam in garment exports due to the availability of low cost labour in those countries, labour reforms are on the group's radar. Engaging women workers in night shifts is also on the cards.
The group is also expected to allow flexibility in working hours. Currently, a worker is allowed 50 hours of overtime during a quarter. Industry leaders expect this limit would be converted to an annual one---200 hours a year, per worker.
A quick decision on the demands of fixed-term employees is also being considered. As there are various slack periods every year for the garments industry, the inter-ministerial group is keen on a provision for fixed-term employees so that the workforce is engaged according to the peak and lean seasons. "The training of a worker takes at least two months; so, the industry cannot fire the employees every now and then. The ruling would help hire additional labour to expedite export orders," said an expert.
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The industry, sources said, could be relocated to India's eastern corridor, as labour was abundant and cheap in that region. Currently, such clusters are spread across the Delhi-National Capital Region and Bangalore, which are high-cost areas.
The group of ministers was formed after a meeting of a high-level committee chaired by the prime minister on July 9. The meeting was aimed at boosting the subdued economic growth and creating employment opportunities in the manufacturing sector. At the meeting, it was decided quick decisions would be taken to raise textile exports 30 per cent this year. In 2012-13, these were $33.7 billion.
It was said India's strengths in the cotton and fibres segments would be leveraged to enhance employment and achieve a greater share in global markets, especially for apparel.
The steps discussed included having ready availability of work space, adequate and comfortable housing for workers, more flexible work timings, leveraging textile clusters and obtaining better technologies. The industry is positive about the government's initiatives, as these would serve to meet the long-standing demands of the industry.
ON THE CARDS
- Tweaking of labour laws; interest subvention
- Engaging women workers in night shifts
- Working hours of workers might be made more flexible
- Demands of fixed-term employees might be addressed
- Industry could be relocated to India's eastern corridor
