TIRUPUR: As part of a two-pronged strategy to boost exports, the Apparel Export Promotion Council (AEPC) is trying to venture into newer markets like Japan and Brazil and also work with the government in trying to advocate bilateral trade agreements with the European Union (EU).
The global meltdown and subsequent reduction in orders have led garment exporters to look for alternate markets. Though exports to South Africa, Japan and Latin American countries constitute only 4% of the country’s textile export, AEPC wants to develop these markets for the future.
Following a successful marketing campaign in South Africa, where the country put in a sustained efforts for six years, exports reached $380 million in 2008-09, up from $130 million in 2002-03.
AEPC recently did a mega show in Brazil. “With more campaigns, we look to double business in South Africa and Brazil,” AEPC chairman Rakesh Vaid said.
However, the UK and US continue to be the major destinations for apparel exports from India. While the EU takes the lion’s share with 45% of total Indian apparel exports, the US is the single largest buying country from India, accounting for around 30%. Among the other countries to which India exports, Canada accounts for the major portion.
“We are heavily dependent on the US and EU markets. To compete with the likes of China and Bangladesh we will have to extend our markets to Japan, South Africa and Latin American countries,” Mr Vaid told ET.
However, some exporters down South aren’t comfortable exporting to newer markets. “It is highly risky to venture to markets like Brazil, where the payments aren’t regular,” said a leading exporter in Tirupur. Also, Japan produces high-quality products domestically and South Africa already sources from Bangladesh, he added.
Source : The Economic Times