In what ways has competition affected workers, Indian exporters and foreign MNCs in the garment industry?
- Large MNCs in the garment industry in Europe and America get their products from Indian exporters.
- These large MNCs with worldwide network look for the cheapest goods in order to maximise their profits.
- To get these large orders, Indian garment exporters try hard to cut their own costs.
- Earlier, a factory used to employ workers on permanent basis. Now they employ workers only on a temporary basis, so that they do not have to pay workers for the whole year.
- Workers also have to put in very long working hours. They have to work in night shifts on a regular basis during the peak season.
- Wages are low and workers are forced to work overtime to make both ends meet.
- While this competition among the garment exporters has allowed the MNCs to make large profits, workers are denied their fair share of benefits brought about by globalisation.