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India targeting USD 40 BN in Textile & Apparel Exports.. Can we Really Achieve it????

Apparel Manufacturing

Since the new government came to power, there has been a significant push towards enhancing India’s apparel and textile sector.

The introduction of new initiatives, such as the Production Linked Incentive (PLI) schemes, aims to create opportunities for new investments and address gaps in the supply chain. For example, the Man-Made Fiber (MMF) scheme is designed to boost India’s market share in a segment where it has traditionally been weak.

Additionally, recent Free Trade Agreements (FTAs) with Australia and the UK are expected to further drive growth in the sector.

However, an important question arises: are we doing enough to boost exports from India? Are we on the right path to achieving the goal of $40 billion in exports? What specific actions are necessary to reach this target?

Team PERFECT SOURCING engaged with industry associations, sourcing teams, and exporters to gather a range of perspectives on this issue.

AEPC (Apparel Export Promotion Council) is preparing a growth strategy to realise the true potential of the RMG sector and achieve exports to the tune of USD 40 Billion by 2030.

Sudhir Sekhri, Chairman, AEPC

Speaking on the strategy, Sudhir Sekhri, Chairman AEPC stated that,

“India’s apparel exports have the unique distinction of having minimal import dependence. With the advantage of being amongst the largest producers of all kinds of fibre- natural and man-made and having an abundant young workforce, India has all the ingredients to build an unparalleled ecosystem from Fiber to Fashion. This potential can be harnessed to uplift the underprivileged section of our society and also give a huge boost to women empowerment through employment and skilling.”

Elaborating further on the strategy, Chairman AEPC stated, “This financial year we are planning to participate in 17 International Fairs across all continents. The new destinations that we are targeting this year are Saudi Arabia, Poland, Mexico, Brazil, South- Africa and Russia besides the traditional large countries like EU, USA and UK”.

In order to reach out to the foreign Brands, AEPC organised a roundtable in New Delhi with the representatives of major NCR based Buying Agencies/Liaison Offices of overseas Retailers/Brands.

This roundtable was chaired by Shri Rohit Kansal, Addl Secretary, Ministry of Textiles, GoI and co-chaired by Smt. Shubhra, Trade Advisor, Ministry of Textiles, GoI.

Shri Rohit Kansal, Addl Secretary, Ministry of Textiles, GoI
Shri Rohit Kansal, Addl Secretary, Ministry of Textiles, GoI

Sh. Rohit Kansal said,

“The target of 40 billion USD by 2030 is eminently achievable and to achieve that goal there needs to be more and more engagement with the brands and buying houses which alone can create right perception among potential buyers about the industry’s readiness to meet various compliances.

Smt. Shubhra, Trade Advisor, Ministry of Textiles, GoI
Smt. Shubhra, Trade Advisor, Ministry of Textiles, GoI

Ms. Shubhra said,

“There is a need for scaling and increased investment in the sector to instil confidence in sourcing from India by all global brands, further emphasizing on the need to work on the perception of India’s manufacturing ecosystem in the world. She further suggested that the Council may like to explore forming a group of heads of CSR departments of major apparel companies along with other council to pro-actively keep track of any baseless allegations by vested interests about social compliance issues in the textile value chain and refute them strongly with relevant evidences.”

Chairman AEPC observed, “The advantages from FTAs are now visible as RMG exports have registered 16.8% growth in Mauritius and 5.7% in Australia, for the period APR-FEB 2023-24, compared to the same period last year”.

The signing of FTA in the near future with the UK, which accounts for roughly 8% of Indian apparel exports, will provide a much-needed fillip to the garment industry, he said

 

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