Dhaka, Monday, 25 May 2020

India looking at flat apparel exports

India looking at flat apparel exports

Apparel Desk: India’s apparel exports are expected to remain flat during this financial year and the first half of next year. Exports to key markets have fallen due to a decline in demand especially in the United Arab Emirates. The problem is further compounded by increasing competition from other exporting nations like Cambodia or Bangladesh that enjoy low labor costs that India cannot compete with.

Tech upgrade incentivisation, market diversification, and innovation are good starting points to help India’s apparel exports regain their upward growth. As India cannot compete on lowering labor costs, the focus could be on expanding schemes for tech upgrades and introducing more policies that incentivise apparel exporters to upgrade technology. The search for new markets is on. Four new markets with high potential for future growth include the UK, Chile, Israel and Japan. By identifying products with high growth potential, and leveraging individual strengths like tech innovation, exporters can start to push their profits and efficiency margins.

India’s apparel exports which were expected to grow steadily, maintained a CAGR of 12.06 per cent to touch $82 billion by fiscal ’21. The relative stability of apparel vis-a-vis other exports created the perception of strength in the sector, but issues are clearly there.