Apparel exports likely to touch $5.5 billion

India's apparel export to US, Canada and European Union (quota countries) is expected to register a 10 per cent growth to $5.5 billion durin...

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India’s apparel export to US, Canada and European Union (quota countries) is expected to register a 10 per cent growth to $5.5 billion during this fiscal compared to $ Five billion exports in fiscal 2001-02. The share of these regions in overall apparel exports is also expected to go upto 65 per cent by March, 2003 from 60 per cent in 2001-02.

According to industry officials, this is quite significant in the wake of stiff opposition from the neighbouring countries like Pakistan, Bangladesh, Sri Lanka, Korea, Indonesia, Thailand, Turkey and most prominently China.

The Indian industry is also of the view that after the phase-out of quota regime by December 31, 2002 under the WTO’s agreement on textiles and clothing ‘Indian exporters will get newer opportunities to take large orders which so far are restricted only to seven per cent increase every year’.

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Regarding the increasing competition in the post-quota regime, specially from China, the chairman of Apparel Export Promotion Council Pritam Goel said that India is capable of competing with China because of the significant difference between the range of items produced by both the countries.

He said that India’s strength lies in value addition like heavy embroidery, embellishment and patchwork while China specialises in mass products. Value-added items accounted for the bulk of total garments exported to both quota and non-quota countries. China will become quota free from January 1, 2008 so its not an immediate threat anyway, he added.

Commenting on competitors, Goel said that India is still at an advantageous position because 94 per cent of its apparel industry is indigenised including the raw material and machinery. However, the domestic industry is not sitting on these inherent advantages.

“We are enlarging our export basket and have started doing more on newer items,” added Goel. Besides this, exporters have also asked their suppliers to develop new fabric so that more orders could be taken.