Garment exports may be flat at $14 bn: AEPC

Garment exports may be flat at $14 bn: AEPC

NEW DELHI: The country's apparel exports are anticipated to be flat at $14 billion in the current fiscal due to slowdown in demand in the traditional markets like the US and Europe.

 A Sakthivel, Chairman, Apparel Export Promotion Council (AEPC) stated, ''garment exports stood at about $14 billion in 2011—12. At the end of this fiscal, I think garment exports will arrive at the same figure as that of last year due to demand slowdown in western markets.''

For the ongoing fiscal, the government had fixed garment exports target at $18 billion. The US and Europe market together contribute 65 per cent of the country’s garment exports.  In April-December 2012-13, garment exports fell 8.5 per cent to over $9 billion. In 2011-12, apparel exports increased about 18 per cent year-on-year to nearly $14 billion.

In order to lower reliance on these traditional markets, exporters are marketing products by participating in trade exhibitions and holding road shows in new markets like Latin America and Russia.

Sakthivel expressed, ''the new markets have started working for us. Exporters have already started getting orders from Japan, Israel, South America and South Africa.''

 In order to encourage garment exports, AEPC has urged for a cut in customs duty reduction on synthetic fabric and adequate availability of credit at affordable rates.

Sakthivel also maintained that there is an urgent need to lower customs duty to 5 per cent on synthetic/blended fabric.