Indian textile and garment manufacturers are eyeing on emerging markets, including South America, Japan, Australia, New Zealand and Africa, for exports.
According to industry representatives, Indian textile sector witnessed a negative growth mainly due to decline in clothing exports in 2012-13. However, exports to non-traditional markets recorded positive growth during this period and the textile and apparel makers expect the growth to continue in the current fiscal year. Speaking to fibre2fashion, secretary of Confederation of Indian Textile Industry (CITI), Mr. DK Nair said, "Last fiscal year may have ended with a negative growth in exports of textiles, basically because of the decline in garment exports. But now the demand for our garments has started improving in the traditional markets and exports to some new markets have also started growing. Thus, our exports of textiles during 2013-14 are expected to register a significant positive growth." "There is also a perceptible improvement in production and domestic demand for all textile products," he adds. When asked about shifting focus to emerging markets, he says, "The focus needs to be on the traditional markets, since global consumption of textile products is substantially in our traditional markets. Emerging markets in Latin America, Africa and South East Asia including Japan are potential areas for improving our export of garments. For non-apparel textiles, Asia and Europe will remain the major markets."
During the 11 months of the last fiscal year, clothing sector recorded a shortfall in exports by 8 percent and declined to US$ 11.5 billion, compared to US$ 14 billion worth of garment exports made in the year 2011-12. Mr. Rahul Mehta, president of Clothing Manufacturers Association of India (CMAI), says, "I see a slight improvement in the exports this year since the US economy is showing signs of some recovery and efforts of the industry to diversify into non-traditional markets will start bearing some fruits."
Some of the emerging markets being focused by the textile and apparel makers for last few years include South America, Japan, Australia and New Zealand. "Entry into new markets is never easy and it is a long-term exercise. But hopefully, last few years' efforts will start showing results this fiscal year," Mr. Mehta opines. Last month, chairman of Apparel Export Promotion Council (AEPC), Mr. A Sakthivel proposed to the Union Minister for Commerce, Industry & Textiles Mr. Anand Sharma to increase duty credit scrip from the present 3-4 percent to 5 percent for the non- traditional markets to reduce the dependency on the US and the EU.
