Praveen Rao

Act. General Secretary

Textile Workers Federation of India (HMS)
ITGLWF AFFILIATES IN INDIA
Indian National Textile Workers Textile Workers Federation of India
Federation

Indian National Garment & Leather Self Employed Women’s Association,

Workers Federation SEWA

National Textile & Garment & Leather Indian Confederation of Labour

Workers Federation

CFTUI
POST MFA SCENARIO
 Intensified competition and price pressures.
 A shift in sourcing towards China and India.
 Serious challenges for exporters in Central
American, Bangladesh, Pakistan, Indonesia and
Vietnam, Sri Lanka and Eastern Europe to remain
competitive.
 Definite losers in countries most dependent on quota
preferences such as Nepal, sub-Saharan Africa,
while apparel would become a sunset industry in
countries such as Philippines and Thailand.
% Change in value of exports to US
and EU between 2004 and 2007
WINNERS LOSSERS
China 73% South Africa -75 %

Macedonia 56% S. Korea -61 %

India 45% Dominican Rep. -48 %

Cambodia 45% Mexico -31 %

Indonesia 30% Romania -28 %

Bangladesh 28% Guatemala -25 %

Pakistan 13% Mauritius -16 %

Sri Lanka 13% Lesotho -16 %

Turkey 8% Philippines -12 %

Morocco 4% El Salvador -12 %

Major impacts on Indian Textile
Industry (2004-2010)
 Increase in exports for India during the post MFA
period.
 Negative impact due to rupee appreciation and
rising Cotton prices.
 Slow down due to Global Economic Crisis
resulting in thousands of workers losing their
jobs. Those affected are mainly the daily wage
labourers (25-30 % of the total workforce)
Initiatives by Govt. of India to minimise
the effect of Global economic crisis
 An additional allocation of Rs.14,000 million was
made to clear the entire backlog in TUF Scheme.
 Pre and post-shipment export credit for labour
intensive exports, i.e., textiles (including
handlooms, carpets and handicrafts) & leather,
etc. made more attractive by providing an
interest subvention.
 Government has planned additional expenditure
of upto Rs 2,00,000 million in the current year.
What is necessary about Trade
Negotiations
 Transparency.
 Awareness & Potential Impact of Trade Liberalisation
 Consider the views of different socio-economic groups of
civil society.
 Discussions on impact on Industry and more specifically
environment, health & safety and labour standards.
 Need for sustainable development perspective in
negotiations keeping in view of the global concerns on
economic, social & environmental levels.
 Need for capacity building measures amongst trade
unions and other civil society bodies to help in monitoring
& evaluation.
FTA
 Trade liberalisation, aside from the benefits and
profits it has generated, has driven the
competition between countries and between
companies.
 This has significantly increased pressures on
labour markets, labour rights and working
conditions.
 Hence involvement of stakeholders in policy
discussions and a more effective role for civil
society is very much necessary.
Thank you