AEPC PREPARES STRATEGY TO BOOST RMG EXPORTS

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Gains of FTAs now visible: Chairman AEPC
Will target new markets besides traditional ones

7th May 2024, New Delhi, Gurugram: AEPC is preparing a growth strategy to realize the true potential of the RMG sector and achieve exports to the tune of USD 40 Billion by 2030.

Speaking on the strategy, Shri Sudhir Sekhri, Chairman AEPC stated that, “India’s apparel exports have the unique distinction of having minimal import dependence. With the advantage of being amongst the largest producers of all kinds of fibre- natural and manmade- and having an abundant young workforce, India has all the ingredients to build an unparalleled ecosystem from Fiber to Fashion. This potential can be harnessed to uplift the underprivileged section of our society and also give a huge boost to women empowerment through employment and skilling.” Chairman AEPC further stated that 70% of the workforce employed in the industry were women.

Elaborating further on the strategy, Chairman AEPC stated, “This financial year we are planning to participate in 17 International Fairs across all continents. The new destinations that we are targeting this year are Saudi Arabia, Poland, Mexico, Brazil, South- Africa and Russia besides the traditional large countries like EU, USA and UK”. Riding on the huge success of the first edition of Bharat Tex in Feb 2024, a unique collaboration between the GoI and the entire Textile Industry, it has been decided to further extend our outreach to Buyers across the world, through the second edition of Bharat Tex sometime early next year.

In order to reach out to the foreign Brands, AEPC organized a roundtable in New Delhi on 3rd May 2024 with the representatives of major NCR based Buying Agencies/Liaison Offices of overseas Retailers/Brands. This roundtable was chaired by Shri Rohit Kansal, Addl Secretary, Ministry of Textiles, GoI and co-chaired by Smt. Shubhra, Trade Advisor, Ministry of Textiles, GoI.

Shri Kansal in his address stated that the target of 40 billion USD by 2030 is eminently achievable and to achieve that goal there needs to be more and more engagement with the brands and buying houses which alone can create right perception among potential buyers about the industry’s readiness to meet various compliances.

Ms. Shubhra stressed on the need for scaling and increased investment in the sector to instil confidence in sourcing from India by all global brands, further emphasizing on the need to work on the perception of India’s manufacturing ecosystem in the world. She further suggested that the Council may like to explore forming a group of heads of CSR departments of major apparel companies along with other council to pro-actively keep track of any baseless allegations by vested interests about social compliance issues in the textile value chain and refute them strongly with relevant evidences.

Commenting on the meeting, Shri Sekhri Said, “The presence of a large number of representatives of major NCR based Buying Agencies/Liaison Offices indicates their willingness to forge a stronger relationship with Indian exporters. We shall strive to build on this relationship of trust by creating an ecosystem, from fiber to fashion, at par with the best in the world. We hope that this relationship will continue to grow as we engage further.” Retailers and Brands of the likes of JCPenney, Gap, Levi’s from USA; EL Corte Inglés and Carrefour from Europe; Liverpool, Suburbia from South America; Kowa from Japan, etc. participated.

Praising the GoI’s initiative in signing several meaningful FTAs in recent years, Chairman AEPC observed, “The advantages from FTAs are now visible as RMG exports have registered 16.8% growth in Mauritius and 5.7% in Australia, for the period APR-FEB 2023-24, compared to the same period last year”. The signing of FTA in the near future with the UK, which accounts for roughly 8% of Indian apparel exports, will provide a much-needed fillip to the garment industry, he said.