Global structure of apparel trade is undergoing a rapid transformation with players expecting quick bucks. India is successfully retaining its position among the top five exporters of textiles and apparels in the global market.
India
Top Exporters for Textile and Apparel:
China
India rise of a sphinx:
Despite the fact that China remains a preferred sourcing destination, it is also reported that buyers are ready to pay higher prices for Indian made apparels comparatively over the last year. Gains for the Indian apparel industry we remixed with some products losing their export market in US, while a few others recorded good value. Ladies dresses, mens trousers, and T shirts are the major category of apparel exports from India to the US. While T shirts and trousers saw a decline in the export figures, ladies dresses show a growth with 20.68%in value.
Growth Drivers:
India has good potential for exporting apparels to the EU. This will create an additional 2.5 million jobs in our country, and also boost the growth of the textile and apparel sector. Currently, Indian apparel sector has 6 million direct, and 3 million indirect workers. With aided incentives, and policy measure, the garment industry can create another 5 million director workers in a span of three years. Apparel exporters are also exploring new markets such as Africa, Latin America, Japan, West Asia, and Oceania. This would help the exporters to minimize their dependency on traditional markets such as EU and US.
Within India, Delhi holds a prominent position in adding value to the country. As a preferable sourcing destination, Delhi serves as a gateway of India for the Indian textile and apparel sector by providing unique value for product design and development. The metro city also has a flexible supply base. It exhibits potential to handle extraordinary fabrics, and is skilled in interpretations of artwork.
Child Labor coming apart at the seams:
US being the single largest market for India, is currently bracketing India in the list of 28 countries allegedly using child labor for the apparel sector. Earlier in July, US Department of labor has declared certain Indian textile and clothing products stating that they might have been manufacturing using child labor. This would be a reputational risk for India at the global forefront. AEPC has adopted an advisory on child labor and common compliance code on labor practices for the industry.
Competitors in the US market:
As per the FICCI study, Vietnam, Indonesia, Bangladesh, China, and Pakistan are likely to be big competitors for India in the US apparel market. 2009 was a worst period for Indian apparel exports to US due to the global financial crisis. While India registered 5.9% share in the total imports of US Vietnams share was 6.2%.
Governments role in enhancing exports:
What is now needed is the Governments support to enable the country to compete with its counterparts. Government should support the sector by high duty draw back rates to offset cost disadvantages. Rising cost of fabrics pose a threat to apparel exporters. Export of cotton apparels has registered an increase in the US market. There is an urge to regulate the exports of cotton, and cotton yarn. The Government has already announced an extension for incentives under the Market Linked Focus Product Scheme (MLFPS). The scheme is currently extended till March 31, 2011. Indian apparel exporters expect the same consideration for their shipments to US as well.
Indian apparels have made inroads into the global market due to their quality, durability, and ethnic beauty. With well organized supply chain, garment manufactures, exporters, suppliers, and stockings, Indian apparel industry is quickly growing to become one of the best in the world.
References:
1. Indianexpress.com
2. Exportbureau.com
3. Textileglobal.com
4. Smetimes.tradeindia.com
5. Thehindubusinessline.com
Comments