Apparel Online India Magazine April 2nd Issue 2018 | Page 11

MIND TREE under the WTO’s Agreement on Subsidies and Countervailing Measures (ASCM). The schemes that have been called for consultation at the WTO include Merchandise Exports from India Scheme (MEIS), the Export Oriented Units Scheme (EOUs) and sector-specific schemes – including Special Economic Zones (SEZs), and Export Promotional Capital Goods Scheme (EPCG), etc. The outcome of this consultation could have wide ranging ramifications for the industry that is exporting to not just the US but also the global market. While India would surely challenge the US contentions, this move is certainly a cause for concern for several exporters who depend on these schemes to remain competitive in the global market. Data on textile and apparel exports into the US shows that India, the third largest exporter after China and Vietnam, accounted for an overall T&A exports of US $ 7.82 billion in 2017 as against US $ 7.59 billion of T&A exports for 2016 recording a 3% YOY growth and commanding a share of 7% in 2017 in the overall T&A exports into the US. As compared to India, China and Vietnam commanded a share of 36% and 11%, respectively last year (in 2017) in the overall T&A exported to the US. While India will have to show that its exports into the US do not in any way affect the jobs in its domestic market, the above data itself indicates that none of the T&A products have a large potential to hurt the employment market in the US. Indian policy makers are faced with the task to neutralise the impact and support industry in NEXT MINDTREE QUESTION these very difficult times. The need of the hour is, therefore, to quickly develop ‘alternate schemes’ which are WTO compatible. TEXPROCIL is actively engaged in compiling suggestions from its exporting members for submission to the Government vide a proposal on the various alternate schemes that can be developed to become WTO compatible. These schemes could cover areas like ‘embedded taxes’, ‘transaction costs’ and ‘structural weaknesses’ in the textile and clothing sector. POST YOUR COMMENTS Being an apparel manufacturer or stakeholder of textile industry, how do you see current scenario of labour availability? Of late, have you noticed increase in labour availability…? If yes, is it the positive impact of skill developments schemes, or is it that apparel exports have not grown as per the industry’s expectations, so more labour is not required… Are there any other reasons also, like automation, increased productivity, efficiency, etc.? www.apparelresources.com [email protected] www.apparelresources.com | APRIL 16-30, 2018 | Apparel Online India 11