India, a promising RMG destination

[Capt.Popeye]

Yeah we need to take inspiration from Bangladesh, 80% of RMG employees are women. If the women of Eastern India start earning, that will change a lot of trends for these backward states. If we are just able to fulfill the local demand that should be able to make a lot of difference. Lets hope someone thinks along these lines.

That is the universal norm the world over. And the Indian RMG industry follows the same pattern. Actually the vocational education system in the NE should be revamped to train women there for this purpose. But if a RMG industry is set up in N.E. India, it will throttle the RMG industry in BD to some extent.

 

[Roybot]

That is the universal norm the world over. And the Indian RMG industry follows the same pattern. Actually the vocational education system in the NE should be revamped to train women there for this purpose. But if a RMG industry is set up in N.E. India, it will throttle the RMG industry in BD to some extent.

True, but everyones gotto look after their own people. Having said that though, it will be quite hard to compete with the labour cost in Bangladesh, its almost half of what it is in India. You think government/ semi-government co-operative model might work and even out the labour cost difference?

 

[EjazR]

Leaving aside the foolish comments, India should try to achieve as much economic intergration as possible with its regional neighbours. India should aim to become the top trading partner of each country even if it means India has to run a deficit. Being the bigger economy, more open trade with its neighbours will always benefit India in the long run as well as benefit and bind neighbours together economically.

 

[TopCat]

That is the universal norm the world over. And the Indian RMG industry follows the same pattern. Actually the vocational education system in the NE should be revamped to train women there for this purpose. But if a RMG industry is set up in N.E. India, it will throttle the RMG industry in BD to some extent.

NO it will not and India is no way come near to competing in RMG with Bangladesh. You probably not aware of the extent of RMG muscle BD gained over the year. I could quote from president of BGMEA who once observed that in India you cant even find more than 3 RMG factories which having more than 1000 machines whereas BD has 1000 of such factories and some of them employs more than 20-30000 workers. Indian RMG are just cottage industries.

Besides how many people have the capacity in NE to invest in RMG? Its not that somebody from south or north india will go there to invest. You should first focus on west bengal and a good place to start with.

 

[Burnz]

There is a catch in textile industry. Throughout the history, none of Textile driven country produced their native cotton. Starting from England, Germany, then came to Japan, Taiwan etc. Cotton was always abundant and you can source them from multiple of different places and Africa still untapped.

The basic industrialization starts from textile which employes huge number of manpower. Its not only money how it helps, rather as it incorporate large segment of human population which in turn teach them discipline, educated, polished and eventually change the complexion of the whole nation. Its just the first step to promote urself from clay footed peasant to urbanised citizen. I am glad that Bangladesh maintaining the basics and certainly other industry will follow through which will be more technology intensive and will employ lesser number of manpower. Dont take it otherwise, but India just missed that opportunity instead it is too dependant on service industry and a significant amount of its citizen which are just falling behind.

Bangladesh is exactly where Bombay was 50 Years ago. We became the most Prosperous state in India with textile business. We were known as the Textile Capital of the World. Bombay dominated the Textile Markets of the World. The Ambanis started with Textiles only.

Today Textile is completely Eradicated from Mumbai because of the Communists.

From the Last 30 Years, Heavy Industrial Machinery, Automobiles, Heavy Engineering, Heavy Ship Building made up Mumbai's Economy.

Even the Factories are getting closed today to make way for Financial Services as the Major Sector to make Bombay a Completely International City on Par with Singapore, Hongkong, New York and London.

 

[TopCat]

True, but everyones gotto look after their own people. Having said that though, it will be quite hard to compete with the labour cost in Bangladesh, its almost half of what it is in India. You think government/ semi-government co-operative model might work and even out the labour cost difference?

Regarding labor cost, there are certainly helll lot many people in India who will be more than willing to work for the money that pays in BD factories. You just have to target that particular segment of people. Why we are competitive because we dont hire active segment of the workforce rather gone all the way down to the people who never thought of having a job in their lifetime other than becoming a home maker of some rickshaw puller or work as a maid. YOu always forget that segment of people, Dont you? Why dont you just bring all the Dalit, and people from Slum and have them a decent job in RMG factory with whatever money you could afford to pay to remain competitive.

 

[nForce]

good quality and reasonable price....and I dont have any problem with it...

 

[Burnz]

NO it will not and India is no way come near to competing in RMG with Bangladesh. You probably not aware of the extent of RMG muscle BD gained over the year. I could quote from president of BGMEA who once observed that in India you cant even find more than 3 RMG factories which having more than 1000 machines whereas BD has 1000 of such factories and some of them employs more than 20-30000 workers. Indian RMG are just cottage industries.

Besides how many people have the capacity in NE to invest in RMG? Its not that somebody from south or north india will go there to invest. You should first focus on west bengal and a good place to start with.

If the Government wants RMG sector to be developed in North East India, We have the Financial Muscle to heavily subsidize to create the base. It could cause a tantrum in RMG sector in BD. Access to sea, we have Myanmar .

 

[Al-zakir]

Yaar, why is it in BD section? Shuldn't this thread be at India or world affair section?

 

[TopCat]

Bangladesh is exactly where Bombay was 50 Years ago. We became the most Prosperous state in India with textile business. We were known as the Textile Capital of the World. Bombay dominated the Textile Markets of the World. The Ambanis started with Textiles only.

Today Textile is completely Eradicated from Mumbai because of the Communists.

From the Last 30 Years, Heavy Industrial Machinery, Automobiles, Heavy Engineering, Heavy Ship Building made up Mumbai's Economy.

Even the Factories are getting closed today to make way for Financial Services as the Major Sector to make Bombay a Completely International City on Par with Singapore, Hongkong, New York and London.

Well Bombay has to provide service to a country of 1.2 billion people, and certainly it will have its glory. But India is a big country and there are certainly places where you could have labor intensive industries. I am sure even you will be the one who will venture for such industry if you were given adequate opportunity even in Bombay. I still see traditional clothings coming out from Maharashtra.

 

[TopCat]

If the Government wants RMG sector to be developed in North East India, We have the Financial Muscle to heavily subsidize to create the base. It could cause a tantrum in RMG sector in BD. Access to sea, we have Myanmar .

No problem YAR, if you want to subsidise western consumer with the money of your poor, its up to you.. GO for it.

 

[Roybot]

Regarding labor cost, there are certainly helll lot many people in India who will be more than willing to work for the money that pays in BD factories. You just have to target that particular segment of people. Why we are competitive because we dont hire active segment of the workforce rather gone all the way down to the people who never thought of having a job in their lifetime other than becoming a home maker of some rickshaw puller or work as a maid. YOu always forget that segment of people, Dont you? Why dont you just bring all the Dalit, and people from Slum and have them a decent job in RMG factory with whatever money you could afford to pay to remain competitive.

No I didn't, if you read my earlier posts I was talking about underdeveloped eastern states like Bihar and Orissa. Even then it would be hard to beat BD in labour costs, cause of the minimum wage guideline fixed by the Government of India.

 

[Burnz]

Well Bombay has to provide service to a country of 1.2 billion people, and certainly it will have its glory. But India is a big country and there are certainly places where you could have labor intensive industries. I am sure even you will be the one who will venture for such industry if you were given adequate opportunity even in Bombay. I still see traditional clothings coming out from Maharashtra.

Textile Industry has died in Mumbai but not Maharashtra. Bhiwandi, Malegaon run their entire Economy with Textile. BD can learn a lot from their experience.

 

[TopCat]

No I didn't, if you read my earlier posts I was talking about underdeveloped eastern states like Bihar and Orissa. Even then it would be hard to beat BD in labour costs, cause of the minimum wage guideline fixed by the Government of India.

So yur govt will rather keep them unemployed and dalit than having a job for little less pay. Thats not a smart policy i suppose. Saying that you have your own cotton which could makeup of little extra salary that you pay for your worker. The compliant factories here pays far more money than the minimum salary fixed by govt.

 

[TopCat]

Textile Industry has died in Mumbai but not Maharashtra. Bhiwandi, Malegaon run their entire Economy with Textile. BD can learn a lot from their experience.

Certainly, Factories here do hire a lot of skills from India/Pakistan/Srilanka/Taiwan/Korea. You need all the expertise you can afford to remain competitive. And the best place to hire is from your competitor.