Merchandise exports in September fell by 6.6% to $26 billion. Exports during this fiscal have fallen 2.5% to $159.6 billion. The most worrying part is that labour-intensive exports, which create employment in large numbers, have been falling. Mint examines this decline.
Which sectors haven’t done well in exports?
Offshoring of apparel manufacturing has been a blessing for many developing countries. The readymade garments (RMG) industry, employer of 4 million workers, mostly rural women, contributes more than 80 percent to Bangladesh's export revenue. Low-cost labour has been the primary reason for western retailers to wait for months to get a shipment from offshore destinations. Once technology becomes a cheaper alternative to the least costly manufacturing labour, will apparel manufacturing complete the journey in returning home?
Fashion brand H&M has become the first major retailer to list individual supplier details for each garment on its website to increase transparency in an industry with high risks of slavery and labour abuses.
The Sweden-based multinational’s move was hailed by workers rights groups who said it was a step forward, but added that the data may not be particularly meaningful to shoppers without additional information to put it into context.
Solapur a district in Maharashtra known for its manufacturing skills is set to become major uniform and garment manufacturing hub in the coming years, following Union government’s initiative to set up Garments Park and new MIDC, said Solapur Readymade Kapad Utpadak Sangh, vice president Nilesh Shah.
