The euro zone debt crisis seems to have hit the apparel exports from India in the current financial year with the Apparel Export Promotion Council (AEPC) admitting that it will fall short of the target. Europe accounts for virtually 50 per cent of India’s total apparel exports.
Textile ministry had set a target of $14 billion for apparel exports in 201-12 vis-à-vis $11.58 billion in the preceding year. Readymade garments worth $8.4 billion have been exported in April-November 2011 and the council expects to achieve 90-92 per cent of the target at $12.6 to $13 billion.
However, the council expects to more than double India’s apparel exports from $14 billion to $30 billion in next five years. This would come on the back of diversification into new markets as well as expansion of the product portfolio with greater focus on synthetic clothes, said newly elected AEPC chairman A Sakthivel.
“Global slowdown has hit demand in India’s traditional apparel markets like EU and US. Hence, we will now focus on penetrating into Latin American countries as well as Japan, Australia and Russia as these countries hold immense potential. Besides, we are strongly working on moving from cotton to synthetic fibre, as it will help us to diversify into new products like sportswear, swim suits. This is expected to help us in doubling our exports in next five years,” Sakthivel said.
India currently does not have an expertise in developing synthetic fibre though there is capacity available for synthetic yarn. As a result, the council has set up Innovative Garment Technology Mission as well as Knitwear Technology Mission that will focus on developing base for synthetic fabric in the country.
According to Sakthivel, the initial plan is to import small quantities of synthetic fibre for knitted as well as woven apparels. “Eventually we will develop the skills to manufacture similar fibres in India," he added.
Source : mydigitalfc.com