Child-and-adult-labour-in-the-export-oriented-garment-and-gem-polishing-industry-of-India

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The garment export industry of India: Tirupur and Bangalore
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foreign trade policies such as the Multi Fibre Agreement 43 bias towards handloom products and
orders preferably being passed on in the small-scale sector by trade houses and retailers 44 .
From a modest achievement of Rs 125 million (US$ 3.5 million) in 1971, India exported garments
for over Rs 80,783.34 million (US$ 2.3 milliard) in 1990 and around Rs 4.5 billion (US$
126 milliard) in 1994-95. The total export of all textile commodities in 1994-95 was US$ 9.9 billion
45 , which means that garments comprise 45% of the total textile export earnings in the same
year. Quantity-wise, garments comprise almost 60% 46 of the total textile exports from India. In
1994-95 the export earnings of the total Indian export were US$ 26 billion 47 ; garments accounted
thus for around 18% of the value of all commodities exported from India. The garment industry,
therefore, has come to be recognized as the single largest foreign exchange earner for India compared
with all the other export commodities. But there is still a lot to be gained for India in terms
of growth of exports because its share in the world market of garments is only 2.5% 48 .
India's garment manufacturing and export activities are mainly located in Delhi, Bombay, Bangalore,
Coimbatore, Tirupur and, especially for knitted garments, Madras and Calcutta. During
1994, the Northern region accounted for around 47% of total exports of garments (Delhi 44%,
Jaipur 1.5%, Ludhiana 1.5%), Bombay 27%, the Southern region 25% (Madras 10%, Tirupur
9%, Bangalore 6%) and Calcutta accounted for 0.5% of the exported garments from India 49 . The
majority of garments which are exported from these centres, mainly goes to countries which have
set quotas to the import of certain textile and garment items, like the European Union and the
USA. 'In 1994, of the quota countries, 40% was exported to the European Union, 30% to the
USA and 6% to other quota countries. Non-quota countries such as Japan, Switzerland, USSR,
Sweden and Australia together accounted for around 17% of the total exports of garments from
India' 50 . The European Union is India's largest trading partner in garments.
India faces a lot of competition from other cheap garment manufacturing countries like China,
Bangladesh, Nepal, Mexico, Poland and Russia. China is the most feared competitor, 'as the prices
of its garments are much lower' 51 . Though India caters to the lower end of the international
43 The Multi Fibre Agreement (MFA) is the framework which restricts and regulates the international trade in textiles and clothing. The
MFA officially came into force for the first time in 1974. Under the MFA the export of certain textile and clothing products face quantitative
restrictions (quotas) on which is agreed in bilateral agreements between importing and exporting countries. In January 1995 it was decided to
abolish the MFA in phases during ten years from that date. In 2005 the MFA will be totally integrated in the World Trade Organization and
after that no longer the quotas, but the general trade rules, will govern the international trade in textiles and garments. This will increase
competition among all the garment manufacturing countries in the world, for the secured market access for countries like India and others does
not exist anymore.
44 Gerrit de Vylder, Trade Policy and the Search for Textile Markets. The Case of the Benelux and India 1945 - 1992. Tilburg, the
Netherlands, 1992, p. 238.
45 V. Y. Tamhane, 'Textile exports. Phased end to quota system'. In: The Hindu Survey of Indian Industry, 1995, p. 355.
46 Apparel Fortnightly (Magazine of the Apparel Export Promotion Council in India), January 15, 1995.
47 The Hindu Survey of Indian Industry, 1995, p. 355.
48 Apparel Fortnightly, January 15, 1995, p. 25.
49 Apparel Fortnightly, January 15, 1995, p. 25.
50 Apparel Fortnightly, January 15, 1995, p. 23, op. cit.
51 Sunday, January 8, 1995. 'Fashion City. Why is Bangalore the Mecca of India's garment export industry?'.