This is how much apparel exports India is going to make this year.
Even though we could argue about the realistic nature of this number, we can certainly say that the real number will be around $19 billion.
AEPC Chairman Narendra Goenka told the papers that the Indian Apparel industry is on the cusp of good growth and we are trying to create a brand India image for sustainable growth. But how are we going to reach this number?
Apparel Export Opportunities from India
The Apparel Exports Promotion Council (APEC) said that the new markets for India will be Latin America, Australia, and Israel.
The current business growth is expected to grow steadily in the 2022 – 2023 time frame.
The council has taken various steps outside India in order to build good relationships with buying countries to explore opportunities together.
What will act as the fuel for growth in Exports
Production Linked Incentive (PLI) schemes announced in the union budget will help attract investments and will further push domestic manufacturing and exports.
India will execute free trade agreements with countries like UK and UAE.
India is the largest cotton yarn producer.
PM-MITRA Scheme (Mega Integrated Region and Apparel)
Building the ‘Brand India’ Image
Every country has certain qualities attached to the products it makes.
Just like an American product or a Japanese product, ‘Brand India’ is an attempt to create a certain perception towards Made in India products.
We are now in a global economy where companies are rushing to find alternative sourcing and manufacturing destinations outside China.
This is the proper time to create a good reputation and build long-term relationships with brands and retailers around the world and become one of the largest exporters of the world.
Challenges for Growth
Export of readymade garments saw an increase of 22 percent from its lows. After the COVID-19 lockdown and economic depression, the Indian apparel industry has also bounced back.
Despite the local restrictions imposed on manufacturing operations during the first and second waves of the pandemic. It is worthy to notice that the apparel industry has done exceedingly well in spite of these challenges.
As more and more orders are placed in India, there will come to a point where the infrastructure is not sufficient to fulfill all the orders. Yes, labor is not a challenge.
To put this in perspective, China has around 40% of the world's apparel trade. Since the beginning of China plus one narrative companies are withdrawing to other countries like India for alternate sourcing and manufacturing. Even if 5% of China’s production needs to be done in India, it could become a great challenge because of the infrastructural issues.
At present, there is a strong demand for Indian apparel. Strong demand and healthy order books are a great sign of recovery.
Orders are coming from around the globe and the exporting industry is set to see historic all-time highs in the next coming months.