PD Sharma writes to Minister for Textiles on linkage of MGNREGA with industry

Ludhiana, July 18, 2013: Apex Chamber of Commerce and Industry (Punjab) president PD Sharma has written to Kavuru Sambasiva Rao Minister for Textiles in connection with the linkage of M.G. NREGA with industry.

Sharma wrote this letter in reaction to an interview of Minister appeared in a section of the Press regarding regarding M.G NREGA. He writes; “We have been crying hoarse for quite sometime that this scheme is taking heavy toll of Industrial production. Ever since this scheme was introduced the Industry has been facing severe scarcity of labour. In addition the cost of labour has gone up very sharply. Your analysis about the dismal performance of textile & garment industry is very apt.

Our country is in a very precarious economic situation mainly due to acute current account deficit (CAD). You have correctly visualized that India can avail the opportunity when China is vacating labour intensive manufacturing. This can only be done by reducing the labour cost substantially.

It is high time that your noble idea of linking M.G NREGA with the Industry is implemented without delay. This linkage should be applicable to all the sectors of manufacturing. There has to be a rider in this context. M.G NREGA should be available only to those who wish to work with Industry & not to others.

At a time when we need more exports we are allowing exports to decrease by our own mistake. The share of textiles exports in our total exports has fallen from 11.53% in the year 2008 to 8.8% in the year 2013. The reason is our high wage cost which is double of that in Vietnam & Bangladesh. Indian wages are comparable with those of China although the productivity of China’s labour is much higher. Moreover China’s per capita income is three times that of India’s. No wonder China has 33% share in U.S imports of readymade

Garments as compared to mere 5% for India. A similar situation is relevant for our other sectors of Industry.

In almost all the comparable countries export of garment is much higher than that of textiles. In our case exports of textiles is almost one & half time more than that of garments. If we correct our course we can overcome the present crisis of CAD & balance of payment.

Inter Ministerial group headed by Finance Sectary sought the views of MSME entrepreneurs to boost the exports. We gave similar views in that meeting.”