Apparel industry confident of achieving $30 bn exports target
Ahmad Shariq Khan & Aamir H Kaki
Apparel Exports Promotion Council (AEPC), the official body of exporters in India, said that it is confident of achieving the target of $30 billion in exports set by the government, as well as committed to go beyond to exceed it.
“We not only have to reach the target of $30 billion in exports that the government has set for us, but we have to go ahead and exceed that target. With our strategies and the reforms, I don’t think that this is going to be very difficult,” said Ashok G Rajani, Chairman, AEPC and Midas Touch Exports, while addressing a press conference in New Delhi on Tuesday.
The press conference was organised to provide the details of the implementation plan and the way forward, on the special package of reforms announced by the government for the textile and apparel sector.
Last week, the government had announced a special package of Rs.6,000 crore for textiles and apparel sector, to create one crore additional jobs in the next 3 years and generate $30 billion in exports.
Rajani, in a presentation, mentioned that there is an urgent need for job creation and there is a huge potential for employment in the apparel sector. “An investment of Rs.1 crore can generate 70 jobs directly and many more indirectly, he added.
Delivering her special address, Sunaina Tomar, IAS, Joint Secretary (Exports), Ministry of Textiles, said, “The reforms have been started for the improvement of labour in the sector such as the government will bear the contribution of employers under the EPF Scheme for those who are earning below Rs.15,000 per month, during the first 3 years. This will help in leaving more money in the hands of labour.”
On the question of target achievability, she said, “The given task is achievable and I am confident that our industry will attain it.”
She also requested APEC to prepare a time-bound action plan as to what steps to be taken to create additional employment.
The event was attended by HKL Magu, Vice Chairman, AEPC, Vijay Mathur, ASG, AEPC and many other representatives from the apparel industry.
In addition, the event witnessed a pledge session, wherein, pledges that were taken by the industry in the last 120 hours (5 days) were announced. Till date an overall investment of Rs.623 crore has been pledged towards the achievement of the target. The industries that pledged for maximum investment are: Texport Industries Pvt Ltd, Texport Syndicate and Midas Touch Export Pvt Ltd.
Rajani, Chairman of Midas Touch Exports told The Dollar Business Bureau that Midas Touch Exports has pledged to invest Rs.75 crore and to hire 650 people in response to the package.
There were other companies that pledged to achieve the intended target of increasing employment.
Sudhir Dhingra, Chairman, Orient craft said, “Our company will add 4000 people to the existing workforce of 32,000 over the next three years. Apart from replacing a small unit in Noida with a bigger one, Orient will set up one more facility in the city.”
“Richa Global will add 3000 people within a year to its existing employee base of 11,000 people,” said Virender Uppal, Chairman, Richa Global.
Narendra Kumar Goenka, Director Texport Industries said that Texport is looking to recruit 4500 people in the next 3 years, witnessing a sharp increase over the current workforce of 1000 people.