Our vision is to create a future-ready, responsible & resilient industry
Founded in 1978, the Apparel Export Promotion Council (AEPC) stands as the official body of Indian apparel exporters, dedicated to empowering the garment industry and positioning India as a preferred global sourcing destination.
Headquartered in Gurgaon with a registered office in Delhi’s Okhla and 10 regional offices across the country, AEPC serves as a dynamic platform connecting Indian exporters with international markets.
The AEPC plays a crucial role in export promotion through a comprehensive suite of services—ranging from market research, trade policy advocacy, and technical support to design development, workforce training, and facilitating participation in key international fairs.
In a recent interview with Fibre2Fashion, AEPC Chairman Sudhir Sekhri shared his thoughts on the evolving issues facing the industry, including the impact of shifting tariffs and geopolitical dynamics, underlining AEPC’s proactive stance in safeguarding and advancing the interests of Indian exporters even as with its strong vision and mission, AEPC continues to shape a globally competitive, sustainable, and resilient Indian apparel export sector.
Following are the excerpts from the exhaustive interaction.
What is your perspective on the current state of the Indian apparel industry, and what do you see as the key challenges and opportunities in this sector?
The Indian apparel industry is a significant contributor to the economy, employing over 45 million people and around 3 per cent of the global apparel exports. India’s textile and apparel exports have seen only modest growth over the past decade, with apparel/RMG—contributing 40-45 per cent exports of total textiles & apparel exports—growing at a CAGR of just ~1 per cent from 2012 to 2023.
India’s high production costs and low participation in man-made fibre (MMF) based garment exports make its apparel exports less competitive compared to Bangladesh and Vietnam. The overall cost of production in India is significantly higher, creating a cost disability of 12-13 per cent in natural fibre-based apparels and 4-5 per cent in synthetic garments. This adversely affects India’s ability to compete in global markets, making it essential to focus on cost optimisation and enhance competitiveness.
Additionally, India does not have Free Trade Agreements (FTAs) with key markets such as the EU and UK, while competitors like Bangladesh and Vietnam benefit from duty-free access giving India a cost disadvantage in the major apparel export destinations.
Despite these challenges, several opportunities exist for India. Government initiatives like the PLI scheme and the PM MITRA textile parks aim to boost cost-efficiency, MMF production, and integrated textile hubs. Indian garment sector needs to first transition into MMF based. Strengthening skilling programmes, reducing logistics costs, and securing better trade agreements will be essential to improving India’s global competitiveness.
Sustainability and circular economy initiatives are becoming key differentiators in global markets, and India must invest in eco-friendly textiles and advanced manufacturing technologies as well.
Amidst the rapidly changing geopolitical landscape, what strategies do you think are essential for Indian apparel manufacturers to expand market access and diversify export destinations?
In an increasingly uncertain global trade environment, Indian apparel manufacturers must diversify their export destinations beyond traditional markets. Currently, the US and the EU together account for nearly half of India’s apparel exports, making the industry highly vulnerable to demand fluctuations in these regions. Strengthening Free Trade Agreements (FTAs) with major economies, such as the UK and the EU, can enhance market penetration and provide tariff advantages. Additionally, India should focus on emerging markets in Latin America, Africa, and the Middle East, where demand for affordable yet high-quality apparel is growing.
Expediting FTAs with key textile and apparel demand hubs such as the EU, UK, and US will further improve market access and competitiveness.
Moving up the value chain by targeting high-margin segments like athleisure and technical textiles will significantly boost revenues. Additionally, reducing reliance on imported raw materials is crucial, as India currently imports a large share of its MMF and synthetic fabrics from China. Enhancing domestic production capacity in these segments will improve cost competitiveness.
Furthermore, investing in e-commerce exports will allow Indian manufacturers to reach international consumers directly, tapping into a rapidly expanding global digital marketplace.
Compliance with sustainability regulations will also be a key factor in maintaining market access, as new EU policies like the Corporate Sustainability Due Diligence Directive (CSDDD) and the Carbon Border Adjustment Mechanism (CBAM) are set to impact Indian exporters. By leveraging geopolitical shifts, improving market access through trade agreements, and enhancing domestic production capabilities, India can strengthen its position as a leading global apparel exporter.
How do you see the reciprocal tariffs imposed by the Trump administration and the potential impact of the same on India’s apparel exports?
On April 2, 2025, US President Doanld Trump announced reciprocal tariffs as an extension of his ‘America First Trade Policy’. These are based on perception and perceived on the notion of – large trade deficits, declining share of US manufacturing output in global manufacturing, share of manufacturing and exports in US GDP, decline in growth etc among others.
First of all, now that the cat is out of the bag, there is a sense of relief in the sense that we at least know where we are heading and how we fare vis-à-vis our competitors. India faces a 26 per cent reciprocal tariff, which is lower than the 34-46 per cent tariffs imposed on Bangladesh, China, and Vietnam.
However, this potential advantage is being quickly eroded by aggressive demands from US importers. Buyers have already started asking for discounts ranging from 15 per cent to 20 per cent, which is not workable given the industry’s typical net profit margins of just 5 per cent to 6 per cent.
The Indian apparel export sector is bracing for immediate challenges despite initial relief (90-day pause) over the newly announced reciprocal tariffs by the United States.
To address these challenges and maintain competitiveness in US market, AEPC has requested the Government for immediate help to mitigate the impact of our biggest export destination. The key support measures from the Government requested by AEPC include capacity augmentation by modifying/tweaking PLI Scheme and introducing a simplified duty-free fabric import scheme. AEPC has requested the Government to formulate a urban employment encouragement scheme rationalisation of overtime rates to address the problem of absenteeism of migrant labourers during the peak periods, provide financial support and policy stability through introduction of an interest equalization scheme for five years, create a dedicated Export Promotion Fund for the US market and Market Diversification Fund to boost exports to non- traditional markets.
India has set a target of achieving $100 billion in textile and apparel exports by 2030, with $40 billion earmarked for apparel only. What strategies or roadmap do you think are necessary to reach this ambitious goal?
Reaching $100 billion in textile and apparel exports by 2030, with $40 billion from apparel, will require a multi-pronged strategy. First, infrastructure development through the PM MITRA scheme, which aims to create seven mega textile parks covering 1,000 acres each, will enhance manufacturing capabilities. Second, India must expand its MMF sector, as global demand for MMF-based apparel is projected to grow at 5-6 per cent annually. Third, securing FTAs with key markets like the UK (potential duty elimination of 9.6 per cent) and the EU (where Bangladesh enjoys zero-duty access under GSP+) will be essential. Sustainability initiatives such as green factories, digital product passports (DPPs), and circular economy adoption will help meet global regulatory standards.
Additionally, boosting R&D and automation adoption among MSMEs, which contribute nearly 80 per cent of India’s apparel production, will enhance productivity. E-commerce exports, supported by initiatives like ONDC (Open Network for Digital Commerce), can tap into the $1 trillion global online fashion market.
By implementing these strategies, India can strengthen its global competitiveness and achieve its ambitious export target.
How does AEPC support small and medium-sized enterprises (SMEs) in the apparel export sector, particularly in areas such as market access and capacity building?
AEPC plays a pivotal role in facilitating market access and capacity building for Indian apparel exporters, particularly the SMEs. Under the Market Access Initiative (MAI) scheme, AEPC organises mega shows and international apparel fairs, offering subsidies to reduce participation costs and help exporters expand their global reach. To further strengthen trade relations, AEPC arranges trade delegations and reverse buyer-seller meets, where international buyers engage directly with Indian exporters. For instance, in February 2023, AEPC hosted leading Japanese buyers to explore sourcing opportunities in India through RBSM.
On the capacity-building front, AEPC conducts skill development programmes, seminars, webinars, etc.
Beyond these initiatives, AEPC also provides market intelligence and advisory services, equipping exporters with insights into market trends, trade policies, and potential buyers, enabling them to make informed business decisions.
Through these concerted efforts, AEPC continues to drive the growth and sustainability of MSMEs in the Indian apparel export sector, helping them overcome challenges and capitalise on emerging global opportunities.
What strategies does AEPC employ to promote skill development within the apparel manufacturing industry?
AEPC plays a crucial role in enhancing workforce skills in the apparel sector through its training programmes under the Samarth Scheme of Capacity Building in Textiles Sector (SCBTS). In collaboration with institutions like Apparel Training and Design Centres (ATDCs), AEPC provides structured training in key areas such as garment construction, pattern making, and quality control. These training centres offer hands-on experience, equipping both workers and new entrants with industry-relevant skills to enhance productivity and efficiency.
With sustainability becoming a key driver of consumer demand, how is AEPC helping apparel makers align with eco-friendly and ethical manufacturing practices?
AEPC regularly conducts webinars and seminars for its member exporters. These sessions provide crucial knowledge on Environmental, Social, and Governance (ESG) standards and global sustainability regulations, ensuring that exporters remain compliant and competitive in international markets.
Additionally, AEPC is advocating for various schemes to help apparel exporters adopt sustainable practices. One such initiative is the proposed Green Transformation Scheme, which aims to enhance sustainability infrastructure in the garment sector. Under this scheme, factories would have access to long-term soft loans at a maximum interest rate of 5 per cent, with tenures ranging from 3 to 10 years. The scheme would support investments in critical areas such as water and energy efficiency, waste management, and renewable energy. To further encourage green transformation, these investments should receive double weightage for deductions under the Income Tax Act.
Furthermore, AEPC is pushing for duty-free import of textile and garment machinery, including equipment essential for sustainable and green manufacturing. By enabling apparel exporters to access advanced eco-friendly technology at a lower cost, this policy would accelerate the industry’s transition towards environmentally responsible production. Through these initiatives, AEPC continues to play a pivotal role in fostering sustainability in India’s apparel export sector.
Looking ahead, what are your priorities and goals (for the near future and long-term) as the AEPC Chairman?
As Chairman of AEPC, my priorities and goals for the near future and long term are centred on driving innovation, sustainability, and global competitiveness in India’s apparel export sector. Our industry stands at a crucial juncture, with immense potential to expand its global footprint.
Short-term objectives:
- Enhancing Market Access: Expanding India’s presence in key international markets by facilitating participation in global trade fairs, and trade delegations. Also, strengthening trade relations through strategic collaborations. This we are doing through taking delegations to unconventional markets such as Mexico, South Korea, etc.
- Sustainability & ESG Compliance: Promoting sustainable manufacturing by supporting apparel exporters in adopting eco-friendly and ethical production practices. Encouraging investments in renewable energy, circular economy models, and sustainable materials to align with global sustainability mandates.
- Skill Development & Capacity Building: Strengthening workforce capabilities through targeted training programmes under the Samarth Scheme and other skill development initiatives. Enhancing collaboration with industry institutions to equip workers with advanced skills in garment construction, quality control, and emerging technologies.
- Technology Upgradation & Innovation: Advocating for policy support and financial incentives for MSMEs to upgrade their technological infrastructure. Pushing for the revival of the Technology Upgradation Fund Scheme (TUFS) or a new initiative tailored to facilitate the adoption of Industry 4.0 solutions, automation, and smart manufacturing.
- Strengthening MSMEs & Supply Chain Resilience: Providing targeted support to micro, small, and medium enterprises (MSMEs) by improving access to finance, raw materials, and infrastructure. Encouraging regional clusters and promoting investment in textile parks for a robust supply chain.
Long-term goals:
- Positioning India as a Global Apparel Sourcing Hub: Leveraging India’s comprehensive textile value chain to establish the country as the most reliable and competitive global sourcing destination. Expanding market reach through FTAs and strategic trade partnerships.
- Achieving Sustainable Growth: Aligning the apparel industry with India’s Net Zero goals by promoting green manufacturing practices, reducing carbon footprints, and integrating sustainability at every stage of production. Advocating for financial incentives and policy frameworks that encourage responsible production.
- Boosting Investments & Infrastructure Development: Supporting the development of mega textile parks under the PM MITRA scheme, fostering integrated textile clusters, and ensuring world-class infrastructure to attract global buyers and investors.
- Increasing Export Market Share: Strengthening India’s position as a top apparel exporter by targeting a higher global market share. Implementing initiatives that enhance efficiency, quality, and cost competitiveness to drive export growth.
- Encouraging Innovation & R&D: Fostering a culture of innovation by promoting research and development in smart textiles, technical textiles, and advanced apparel technologies. Supporting startups and industry collaborations to drive next-generation advancements.
Through these strategic initiatives, AEPC will continue to support India’s apparel sector in achieving sustainable, technology-driven, and globally competitive growth. Our collective vision is to not only elevate India’s position in the global apparel trade but also create a future-ready, responsible, and resilient textile industry.
