It appears to be sunshine time for apparel exports from India. Says Mr. Amitabh Kant CEO, NITI Aayog,”China has started moving out of the apparel sector and there is a huge opportunity for India. Today the wages in China are 2-3 times that of India and given the aging population of China, the cost of apparel manufacturing will continue to rise there. In such a scenario, the global suppliers will start looking at other avenues for sourcing.” He also pointed out that countries like Bangladesh and Vietnam are having preferential access in European Markets and hence it is extremely important that we get the FTA with Europe ratified at the earliest. As far as Indian apparel exports are concerned, India is heavily reliant on cotton and Indian manufacturers and exporters need to see how they can move to man-made fibres which can help India to garner more global share. “There has been a reduction in the benefits of the Industry post GST roll out and we are looking at ways through which we could bring it at par with the rates prevalent in the previous regime. For the benefit of the Industry central and state levies should be refunded and Government will work with the Industry to resolve this issue,” Mr Kant maintained.
The NITI Aaayog CEO was addressing the exporters at the function organised to celebrate 40th year of Apparel Export Promotion Council (AEPC) at APEC head office in Gurgaon, Haryana. Also spoke on this occasion was Mr. HKL Magu, Chairman, AEPC. “AEPC’s well-timed initiatives and confidence to take calculated risks, braving all odds, perceptible across all circumstances, is the key fuel for the India’s apparel export growth. As India is gearing up to move towards WTO-compatible, production-based subsidies from export-based subsidies, it becomes extremely important that we position India strongly as a responsible sourcing destination,” urged Mr Magu.