The month of June has been like a roller coaster ride with some good news punctuated in-between the events that are disturbing and reason for concern. But the best news first... Apparel Resources launched its flagship brand Apparel Online in Vietnam this month. It was a proud moment for the team and the warm response that the magazine received from the local industry, the textile and garment association and the Indian expat community in the country was an icing on the cake.
There are many Indian expatriates working in Vietnam garment industry, leading both buying offices and factories. The feedback I got from them only makes my resolve firmer to explore Vietnam and present it to the world as the next big sourcing hub of Asia.
The other news that makes me very happy is the appointment of Smriti Irani as the Union Textiles Minister of India. Coming very close on the heels of the ‘Special Package’ announced by the Union Cabinet for the apparel industry, I sincerely hope that the industry will finally get its due recognition through a combination of firebrand leadership and timely policy interventions including some relaxations in labour laws that have been a long standing demand from the industry... However, I do hope that she is not diverted to look after UP politics.
The announcement indicates that finally two things have been clearly understood by the Government – the enormous capability of this sector to generate employment, and the other is that the apparel export sector is not to be clubbed together with handloom.
But among these reasons to rejoice, the exit of Britain from the EU is a matter of deep concern for many exporters as the Pound fell 15 per cent in just a few days riding on negative business sentiments. Exporters whose payments are yet to come will be hit hard, unless they had anticipated and hedged the risk in advance or negotiated payments in Euro…, which I doubt many have done!
‘Brexit’ also means that the negotiations with the EU for FTA will have to start afresh... Many also believe that with the UK out of the EU, the FTA would not be as impactful. Of the US
$ 16-17 billion apparel exports from India, Europe accounts for 45 per cent, within which the UK holds the largest share of 40 per cent. For made-ups, the share of Europe is 20-25 per cent, of which the UK forms 15-20 per cent.
The most worrying development however has been the eruption of terrorist activities in neighbouring Bangladesh. After the terror attack on a cafe in the elite locality of Gulshan in Dhaka that left 20 hostages dead, most of whom were foreigners working in the country, put us all under shock... But the firing and blast at Eid prayers have left the country as well as its well-wishers numb. This will certainly put fear into everyone and buyers may start working with factories closer home or at safer destinations.
Is Bangladesh going the Pakistan way...? Will an industry that is roaring to grow be ‘killed’ by anti-human forces...? I hope not. I have always propagated that the Indian sub-continent is a thriving hub for garment sourcing with each country having its own strength making for one comprehensive region..., but if the terror attacks in Bangladesh are not nipped out soon, we could be getting into an era of business boycotts that would impact the whole region.
There are many Indian expatriates working in Vietnam garment industry, leading both buying offices and factories. The feedback I got from them only makes my resolve firmer to explore Vietnam and present it to the world as the next big sourcing hub of Asia.
The other news that makes me very happy is the appointment of Smriti Irani as the Union Textiles Minister of India. Coming very close on the heels of the ‘Special Package’ announced by the Union Cabinet for the apparel industry, I sincerely hope that the industry will finally get its due recognition through a combination of firebrand leadership and timely policy interventions including some relaxations in labour laws that have been a long standing demand from the industry... However, I do hope that she is not diverted to look after UP politics.
The announcement indicates that finally two things have been clearly understood by the Government – the enormous capability of this sector to generate employment, and the other is that the apparel export sector is not to be clubbed together with handloom.
But among these reasons to rejoice, the exit of Britain from the EU is a matter of deep concern for many exporters as the Pound fell 15 per cent in just a few days riding on negative business sentiments. Exporters whose payments are yet to come will be hit hard, unless they had anticipated and hedged the risk in advance or negotiated payments in Euro…, which I doubt many have done!
‘Brexit’ also means that the negotiations with the EU for FTA will have to start afresh... Many also believe that with the UK out of the EU, the FTA would not be as impactful. Of the US
$ 16-17 billion apparel exports from India, Europe accounts for 45 per cent, within which the UK holds the largest share of 40 per cent. For made-ups, the share of Europe is 20-25 per cent, of which the UK forms 15-20 per cent.
The most worrying development however has been the eruption of terrorist activities in neighbouring Bangladesh. After the terror attack on a cafe in the elite locality of Gulshan in Dhaka that left 20 hostages dead, most of whom were foreigners working in the country, put us all under shock... But the firing and blast at Eid prayers have left the country as well as its well-wishers numb. This will certainly put fear into everyone and buyers may start working with factories closer home or at safer destinations.
Is Bangladesh going the Pakistan way...? Will an industry that is roaring to grow be ‘killed’ by anti-human forces...? I hope not. I have always propagated that the Indian sub-continent is a thriving hub for garment sourcing with each country having its own strength making for one comprehensive region..., but if the terror attacks in Bangladesh are not nipped out soon, we could be getting into an era of business boycotts that would impact the whole region.
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