Tirupur: It will be difficult to achieve this fiscal's USD 18 billion apparel export target set by the Textiles Ministry, even as efforts are on to explore new markets with diversified products, Apparel Export Promotion Council (AEPC) has said.
"With the decline in export base, particularly European Union (EU), it will be difficult to achieve the target of 18 billion USD. The Council is confident of making an export of 16.5 billion to 17 billion USD this fiscal," AEPC Chairman A Shaktivel told reporters here last night.
During the April-August period of this fisca, apparel exports have declined by 12 percent to USD 5.26 billion.
Regionally, 50 percent of these exports go to EU, 26 percent to USA and 24 per to other countries, he said
With decline in business in EU, exporters will cut to Europe by exports by 10 percent and distribute more products in US and other countries to achieve higher export volumes.
As part of the action plan to explore diversified markets with diversified products, AEPC had sent delegation to South Africa, Japan and Israel, where China's supply was nearly 90 to 98 percent, compared to India's share of 0.5 percent to one percent, he said, adding response was very good in all the countries.
Delegation will be sent to Russia, Columbia and Panama, where there was huge potential for different range of garments, he said.
Asked about FDI in multi-brand retail and its impact on the apparel sector, Shaktivel said though it will impact small traders, it would benefit the sector as a whole since leading global players would place more orders for existing suppliers, as their requirement would be more in future.
AEPC has also impressed upon Textiles Minister Anand Sharma the need to enter into Free Trade Agreement with EU, so that Indian manufacturers can compete with other exporting countries, particularly Bangladesh, which was getting 10 percent duty benefit due to such pacts, Shaktivel said.
PTI
