India-EU FTA to garner extra garment exports worth $3 bn.

The Apparel Export Promotion Council (AEPC) Monday said that the India-EU Free Trade Agreement (FTA), which is expected to be concluded by the end of the current fiscal, is lilkely to help the country's apparel exporters to garner extra orders worth USD 3 billion from the 27-nation block.

"The India-EU FTA will also help generate 2.5 million jobs in the textiles and garments export sectors and we would be able to export apparel worth an additional USD 3 billion to EU," said the AEPC Chairman, Premal Udani on the sidelines of the inauguration event of the 45th India International Garment Fair (IIGF) in Greater Noida on Monday.

India exported garments worth USD 5.68 billion to EU, accounting for 55 percent of the country's total apparel shipments in the calendar year 2009, he said. The India-EU trade-opening pact is under negotiations for the last two years. Several rounds of official level talks have taken place. The total bilateral trade in the previous fiscal was USD 74 billion.

Meanwhile, inaugurating the fair, Textiles Secretary Rita Menon, said that the FTA between India and EU would be concluded by the end of the current fiscal.

"We have taken it (about India-EU trade talks) up with the Commerce Secretary. I do hope that by the next fiscal, there is something in store for the textile sector," she added.

While speaking about the fair, Udani said, "The IIGF serves as an efficient platform for both apparel exporters and international buyers to see a variety of garments and place orders for the coming season. It gives me immense pleasure to witness the growth in business of both Indian exporters and international buyers through initiatives such as IIGF."

"The apparel exporters have an ambitious target of USD15 billion in exports by year 2011-12, even though last year's exports at USD 10.64 billion were slightly down by 2.64%. Each USD 1 billion in exports requires an input of 36 million man-hours of work and the attendant demand for raw materials, accessories and logisitics creates vibrancy in the entire ecosystem," he added.

Speaking at the event, International Garment Fair Association Convenor, Lalit Thukral said, "With the improving global outlook, we are certain that the IIGF will provide the much needed fillip to apparel exporters to take this year's exports to over USD 12 billion."

AEPC has organized IIGF in association with the International Garment Fair Association (IGFA), the Garment Exporters Association (GEA), the Clothing Manufacturers Association of India (CMAI), the Apparel Exporters and Manufacturers Association (AEMA) and the Apparel and Handloom Exporters Association (AHEA).

The exhibition stalls of various apparel exporters are spread over 4 large halls measuring 15,000 sq meters, with over 300 national participants from the length and breadth of India including Tamil Nadu, West Bengal, Rajasthan, Uttar Pradesh, Gujarat, Madhya Pradesh, Punjab and Mumbai.

On the lines of such fairs internationally, IIGF has been divided into different sections -- fashion accessories, men’s wear, children’s wear, women’s wear and knit wear -- which are further divided into casual wear and city wear, high fashion and occasional wear, lingerie, specialty garments, sportswear besides accessories and fashion jewellery.

Source : SME Times