The Hindu Business Line : CMAI seeks relaxation in labour laws

THE Clothing Manufacturers Association of India (CMAI) has urged the Government to relax labour laws which would help garment manufacturers more flexibility in the management of human resources.

Mr Rajesh Masand, Joint Honorary General Secretary, CMAI, said though cheap skilled labour is available, there are no meaningful labour incentives or reforms, which have been a hindrance in setting up factories to cope with international demand.

He pointed out that there was congestion in the ports, which resulted in delays in clearing cargo. The exports also carry a tax burden of 12 per cent on international cargo and about 25 per cent on domestic cargo. These factors make Indian exports uncompetitive.

Mr Masand said cheaper credit with easier terms for the small-scale sector was a must. The industry must also get protection against cheap imports of garments and a ban on import of worn clothing, he said.

At a press conference, he said the 46th National Garment Fair in Mumbai would be held from August 3 to 5. He said this will be one of the largest apparel industry events covering about two lakh sq ft and is expected to attract more than 18,000 visitors. There will be over 200 exhibitors. Mr Masand said the readymade garment industry is set to grow at 25 per cent during the next few years. He said South India with its proximity to weaving centres, easy availability of labour and favourable infrastructure is emerging as a major growth centre.

South India is on the threshold of major expansion with over 35 new garment factories coming up in this region, Mr Mohan Sadhwani, Executive Director, CMAI, said. The investment into each of these units will be about Rs 200-250 crore. The production capacity will be about 4,000 garments per day, he said.

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