India's Ministry of Textiles is striving to amend the labor law
The appreciation of the rupee has dealt a heavy blow to India’s textile exports. The export target for 2007-08 is still US$4.5 billion. Therefore, the Ministry of Textiles is forced to look for opportunities to amend labor laws to improve exporters’ competitiveness. Official data show that the 2007-08 textile export target is 25 billion U.S. dollars. Today, textile exports have reached 20.5 billion U.S. dollars, an increase of 9.4%. A statement from the Ministry of Textiles today stated that from a long-term perspective, it is necessary to improve infrastructure, labor laws, and create trading companies that are in line with global trends. Compared with a year ago, textile exports only increased by 1.49% in the first half of the year, and the situation improved in the second half of 2007-08. The statement stated that as part of the medium and long-term policy, the government has decided to continue to implement the technology update fund arrangement in the 11th Five-Year Plan, comprehensive textile plan arrangements, and retain the cotton technical team. From October 2006 to April 2008, the rupee appreciated by about 15%, causing heavy losses to exporters of handicrafts. Handicraft exports peaked in 2006-07 at 209.63 billion rupees, and fell to 175.37 billion rupees in 2007-08. In order to improve the infrastructure of the industry, the government proposes to develop 10 more textile parks by 2012, all of which will be included in the comprehensive textile park arrangement. The establishment of 30 textile parks has been approved before. The total investment attracted by the 30 textile parks is approximately 169.53 billion rupees, creating 575,000 jobs, and the annual production of goods worth 273.86 billion rupees. The government has allocated 4.5 billion rupees for the 2008-09 arrangement.