Pakistan’s trade policy on garments adds to woes of Indian exporters

The Hush Post, Ludhiana: With the Pakistan Government giving incentives to their garment exporters by announcing 50 per cent duty drawback, garment exporters here are a harried lot. The Government of India has announced reduction in duty drawback from 7.7 per cent to 2 per cent. The garment export industry in Ludhiana is facing stiff competition from their counter parts in Bangladesh and now Pakistan too. The about 400 garment exporters in this hosiery capital of India are in a fix .The exporters have already started reducing the labour cost, which means more unemployment. Harish Dua, owner of KG Exports says: “I had already reduced my workforce from 550 to 450 employees.” People in the export industry are feeling the pinch of the government’s callousness in having a strong export policy and feel the industry cannot flourish in the absence of government help. India faces strong competition from garment exporters from Sri Lanka, Bangladesh, Ethiopia and Vietnam.

Duty drawback is a trade programme in order to allow importers, manufacturers, and exporters an opportunity to be more competitive on the global market. 

With the Pakistan government’s duty drawback policy, we have lost all hope. Sri Lanka, China and Bangladesh are already giving us a big challenge, now Pakistan has also  jumped into the fray, Harish Dua, Owner KG Exports.This decision of the Pakistan government will be very detrimental to the future of the garment export business in India. Harish Kairpal, General Secretary, Knitwear club.Without government help, the export industry cannot flourish. We are very angry with the government. Vinod Thapar, President, Knitwear and Textile Club.