Indian Apparel Sector Aims To Increase Its Global Market Share

Apparel, Footwear, Fashion

Indian Apparel Sector Aims To Increase Its Global Market Share

CMAI ties up with China Chamber of Commerce to capture the market vacated by China

To grab the market share vacated by Chinese apparel manufacturers, India's Clothing Manufacturers' Association of India (CMAI) has signed a memorandum of understanding with China Chamber of Commerce for Import and Export of Textiles (CCCT) to explore potential areas of mutual co-operation for increasing apparel exports from India.

India's apparel exports stood at US$ 17 billion for the financial year 2015-16. With Rs 5,000 crore package approved to boost the entire apparel sector, the government has set a target for apparel exports at US$ 20 billion as against the industry's pre-package target of US$ 18.75 billion for the current financial year.

The textile ministry has also asked the apex industry body the Apparel Exports Promotion Council (AEPC) to create 1 million jobs and achieve US$ 30 billion in three years.

The MoU between India and China assumes significance especially in terms of the latter's reducing focus on labour- and energy - intensive industries to which textiles remain in the forefront. This has resulted into China' reducing its global market share by 3 per centage points in the last 18 months to around 38 per cent now. India, however, is way behind China with around 3.5 per cent of global market share. India's position in the last few years has improved though.

"This MoU will benefit both countries when we explore opportunities. While organizing trade fairs, both of us would co-operate in associating new clients, visitors and associated supply chain participants to the forum for the benefit of the apparel trade which will ultimately benefit India's apparel industry," said Rahul Mehta, president, CMAI and International Apparel Federation (IAF), the global representative body of apparel manufacturers.

The MoU was signed on the sidelines of 32nd IAF World Fashion Convention India 2016 recently. Speaking on the occasion, Ashok Rajani, chairman, AEPC, said, "With our huge targets of capacity expansion, we envisage an investment of US$ 11 billion over the next three years. All apparel machine supplies also have a big opportunity to reach out to Indian entrepreneurs and supply to them.

Investment in plant and machinery in India has been incentivised. With the schemes having been just rolled out, about two months back, this is right time to reap the benefits of collaborate with the opportunity called India."

IAF estimated India's overall textiles industry including garments, fabrics, technical textiles etc, at US$ 110 billion of which domestic sector contributes US$ 68 billion and exports at US$ 42 billion. By 2021, however, the Indian textiles industry is forecast to double to US$ 220 billion.

Speaking on the significance of online retailing of apparel, Aniruddha Deshmukh, Managing Director and CEO of Mafatlal Industries Ltd, said, "E-retailing is going to be the next growth opportunity in the Indian textiles and apparel sector in the next few years. While Mafatlal does not have any plan to enter into e-retailing, the company with Rs 1350 crore of annual turnover estimates higher single digit growth in its sales in the next couple of years."

The e-retailing of apparel is going to grow from its lower base. Mafatlal Industries, the No 1 producer of school uniform in India would continue to focus on its B2B segment and also strengthen its 110 retail stores with existing branded shirting and fabric segments.

Francesco Marchi, Director General, EURATEX, highlighted the need to initiate dialogue on the free trade agreement (FTA) between India and European Union and the United States.

"The Indian government should start negotiations for the FTA with the EU and the UK for the benefit of the Indian apparel sector.

It is hard to imagine the success of the FTA without UK, post Brexit. UK continues to be textiles manufacturing hub contributing 29 per cent of the entire apparel trade in the EU. 22 per cent of India's exports to the EU goes through UK," he added.