H C Singh

Return of Indian Migrant after Losing Jobs

India’s economy and unemployment in India are going to be hit hard, as reported, 2 lakhs Indians have returned after losing their jobs in UAE, in particular and other gulf states like Kuwait, Bahrain. In addition Indians are also returning from Malaysia and also some other countries- total if Indians losing jobs and returning home is likely to be 3 lakhs in a couple of months. This is a big crisis as most of the Indian migrants to Gulf States had taken loans and are now dependent in govts help and relief.

The above information has been provided by global consulting firm DELOITE for the overseas Indian Affairs Ministry. It has also outlined specific programs for the unfortunate returnee migrants. Shri Manoj C G in his article has outlined the measures that the Govt of India should undertake for migrant returnees from gulf countries. A para from his article is reproduced below.

“ In the short term, the study outlines, the Government should introduce emergency employment generation schemes for returnee migrants, set up temporary camps in foreign countries to provide asylum to those who have lost their jobs, besides providing them free return tickets and financial assistance in the term of subsidized loans to help them to repay loans taken for migration purposes.”

For others who have already returned there should be separate employment exchange “setting the help desks” to provide information about jobs available in the country and abroad.

September 17, 2009 Posted by | India | , , | Leave a comment

Economic crisis in Shoe-Making Industry

There is also great set back to shoe making industry in Agra and Kanpur particularly in Agra. It is said in an article by Trepathi and Chaturvedi “it is biting that Agra artisans began by making boots for Emperor Akbar’s infantry and graduated to fancy shoes before getting hit by rising costs and shrinking markets”

There are many factors leading to decline in the manufacturer of, particularly hand-made, shoes. Decline in the demand in India and abroad because of recession, rise in prices of leather and other raw material, competitions from China that is exporting cheap footwear of all types for men, women and Children mostly made from synthetic material but looking fine. USSR had been importing bulk of shoes and boots from India. But after its dismemberment, there is a steep fall in the import. The slowdown has affected 25-30% of the market which has made more than 2 lakhs of workers in great difficulty.

In Kanpur there were 500 tanneries even 30 years back but now there are only 100 because of restrictions of government besides the general decline in demand for leather.

September 17, 2009 Posted by | India | , , | Leave a comment

Textile Industry

Despite recession and losses in other sectors of industry and craft there is glimmer of hope in textile industry if it cuts down prices by 10 to 15% to compete with similar industries in Bangladesh and Cambodia. It is indicated that garments produced in Bangladesh are 15 to 25 % cheaper and in Cambodia 15-20% cheaper than those from India.

Because of high cast, India’s exports of textile and clothing during 2008-09 to USA declined by 14% compared to 2007-8. “to $1-70 billion around Rs 8,700 crores”, Gokaldas Export ltd which employs 42000 workers, its export orders had declined by 20-25 % during 2008-09 despite cut in prices by 10-15%. But now Gokaldas Export are optimistic and are opening a new production unit in Hyderabad to produce about 1,00,000 pieces a month and add Rs 50 crore a year to company’s turnover.

Orient craft ltd, apparel exporter company based in Gurgaon, has decided on price cut of 8 to 10% though it will mean a squeeze in profits but is determined to expand the facilities and export more. Similarly Orient Craft which earned about Rs 800 crores in 2008-09 despite recession, is setting up a new garment factory in Bhilwara (Rajasthan) employing 3000 workers and aims to produce about 2,50,000 pieces a month by the end of November 2009 when the new factory in Bhilwara would become operative.

Above all, the most optimistic textile industry, Alok Industries Ltd plans to boost its sales by 30 to 35% and is setting up two new garment factories during 2009. As it had already earned Rs 800 crores during 2008-09.

September 17, 2009 Posted by | Indian Economy | , , | Leave a comment