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India Raised Apparels Exports 2-3% in April-Sep 2009
Oct 26, 2009

While apparels exports from India surged 2-3% during April-Sept 2009, the central government has planned to attract FDI in order to take exports to US$ 18 Billion by 2015.
 
The Ministry of Textiles has recently said that apparels exports from India grew 2-3% in April-Sept 2009 over the same period last year (2008), as reported by REUTERS.
 
India currently accounts for 2.6% of the global apparels market while in 2005 when the pre-quote regime was in vogue, it had a share of 3.2%, said the Ministry. If India has to achieve its previous share in the global market, then it needs to raise apparels exports from current US$ 10.14 Billion to US$ 18 Billion by the end of 2015.
 
The Ministry also announced that the Indian government would engage in a project worth US$ 4 Million with the International Jute Study Group for standardization, testing and promotion of Geotextiles. Geotextiles have some distinct advantages like they could be used in areas where there is a persistent problem of soil erosion and soil reinforcement.
In the direction of raising its apparels exports, the Central Government of India has set up a working group for the formulation of National Fibre Policy (NFP) and has asked it to submit the policy by the end of this year. The government has expressed great confidence on the NFP and claimed that it would provide level playing field to all players in the textile industry.
 
Some positive trends in the export segment have been seen in the last couple of months since markets like the US and Europe returns to the growth track. Although the picture of apparels exports seems positive at the moment, Indian textile manufacturers still face a lot of hurdles to compete with their rivals from other countries. Thus, there is an urgent need of introducing reforms in the duty structure of manmade fibres because they are quite expensive and obstruct the competitiveness of manufacturers in the global market.
 
Functioning under the Union Ministry of Textiles, the Indian Apparel Export Promotion Council (AEPC) has charted plans to make textiles industry more competitive by attracting foreign direct investment. The Council has also given a slogan for the industry promotion - "come, invest, produce and sell in India".
 
The Ministry has also devised a strategy to take a delegation of manufactures under the Textile Minister to different countries to attract FDI into India. In the first phase that will start from October 24 of this year, the delegation will visit Italy, Istanbul and Switzerland while in the second phase it will visit Germany, US and France.
 
According to a Research Analyst at RNCOS, “India has to draft an integrated plan for boosting the capacity of textile industry, starting from spinning, weaving, processing to garmenting. Moreover, the country needs to use innovative technology to reduce manufacturing cost and diversify its products from the US and Europe to other emerging economies like the Middle East, Africa and South Asia to remain competitive in the global market.”
 
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