The readymade garment industry aims to achieve Rs. 80,000 crores in exports in 2013-14, an 8-10 per cent growth from the last year level.
“We expect 8-10 per cent growth in readymade garment exports in FY 2014 to Rs. 80,000 crore ($17 billion). Due to the weakness of the Indian rupee, our exports are expected to rise further in rupee terms,” Clothing Manufacturers Association of India (CMAI) President Rahul Mehta told PTI.
Competitor countries like Bangladesh and China are facing labour problems. China is slowly moving out from the labour intensive garment industry towards high-tech and sophisticated products. Present garment exports from China are approximately 10 times more than from India. So, even if 10 per cent of Chinese exports gets diverted to India, Indian apparel exports could double, he said.
Further, the talks on the Free Trade Agreement (FTA) between India and Europe have been going on for the last three years and are likely to be finalised in the near future. If the Indo-EU FTA happens, it would provide duty-free access to Indian garments in Europe, giving a huge boost to the Indian apparel industry.
The industry is now exploring markets of Japan, the Middle East and South America which have a huge potential for readymade garments. The onset of monsoon is expected to stabilise the prices of raw materials like cotton which will boost the industry prospects.
Commenting on the domestic market, Mr. Mehta said the Association expects the size of the Indian domestic readymade garment industry to double within five years due to economic prosperity, simplified government policy, growth in fashion orientation, brand awareness and consumer expectations.