Apparel exporters hope to hit $18b target.

IN SPITE OF stagnancy in apparel exports in the first quarter of the current fiscal (April-June 2012), Indian exporters are hopeful of achieving the $18 billion export target set by the government for the fiscal year 2012-13.

According to the apex body of apparel exporters, Apparel Export Promotion Council (AEPC), garment exports are growing at a rate of 22.7 percent year-on-year in India.

“Last fiscal, compared to its set target of $14 billion, India managed to export clothing items worth $13.699 billion, and considering various government initiatives and sops announced in the Foreign Trade Policy (FTP), we are hopeful that apparel exports will cross the $18 billion mark targeted for this financial year,” said A Sakthivel, Chairperson, AEPC.

AEPC is helping exporters explore new markets in Japan, Russia, Australia and many other such countries, he added.

So far, 70 percent of the apparel exports go to the US and Europe.

“The US and EU have traditionally dominated our export market and they might continue to do so, but we need to explore business opportunities in other countries to evade financial problems from the US and EU,” said Sakthivel.

Chandrima Chatterjee, Director, Economic and and Consultancy Department, AEPC, said, “Currently, we have a favourable dollar rate. We also have sops announced in the FTP. The exporters are seen reaping good benefits and the incentives announced in the Annual Supplement to Foreign Trade Policy 2009-14 are turning out to be favourable for apparel exports,” she said.

The increased presence of Indian exporters in some non-traditional markets is also a good step, Chatterjee added. “We have export promotion activities focussed on countries like Japan, Australia, South Africa and countries in Latin America. These are our focus areas where we are expecting good growth,” she said.

Gautam Nair, Managing Director, Matrix Clothing Ltd, said that the government has been successful in raising the spirits of apparel exporters. “The various initiatives by the Ministry of Textiles have been helpful in increasing our exports in the last few months despite a global slowdown.”

Export to Japan has increased by 60 percent in the last one year, Nair added. “We are in the process of searching potential buyers in new countries. Exporters are exploring new markets like Latin America, Russia, Japan and Africa to reduce dependence on traditional markets like the US EU. Ironically with loads of potential, India just contributes four percent to the world market in apparel exports,” he added. He hoped that the Free Trade Agreement with EU, still in the pipeline, will work out.

Source : tehelka.com