2% Market Focus Scheme helps stabilize garment exports
Garment exports seem to have been benefited by the benefits extended by a 2% Focus Market Scheme, especially in the case of EU and the US markets. The hitherto struggling garment export sector that witnessed dampening exports during most parts of 2010, seemed to have been stabilized on the exports front, reveals the data published by Apparel Export Promotion Council (AEPC).
The data shows that garments exports have shown a decline of 2.25 per cent during April 2010 to February 2011. The export of garments for the period April, 2010 to February, 2011 stood at Rs 45,081 crore; as against Rs 46,120 crore in the same period in the previous year. But the 2% Focus Market Scheme that was aimed at EU markets (for the period 2010-11) and at US markets (from April 01, 2010 to September 30, 2010) has helped register a moderate growth even during the turbulent times.
Said Mr Premal Udani, chairman, Apparel Export Promotion Council, “The Scheme has really helped the garment exporters under a situation when the market conditions in EU markets have not improved fully. The stimulus through 2% Focus Market Scheme needs to be continued for one more year (i.e. for the period 2011-12) in the interest of export promotion and sustaining the employment to large number of workers employed in the industry. Such initiatives by the Government would help the struggling garment industry register some good notes in ensuing period.”
The data shows that one of the major reasons for decline of exports is that India has been priced-out of the market and the entire European Union market has been sluggish. As a remedy, the apparel industry has been looking forward to the faster implementation of Indo-EU Foreign Trade Agreement (FTA). The FTA, if put in place, is expected to garner additional export of USD 1.8 billion in the first year of agreement itself.
During January 2010 to October, 2010, the total exports to EU Countries in quantity have declined by 5.3 per cent. The faster implementation of FTA is highly expected by the apparel industry in light of the fact that other competing countries like Sri Lanka, Bangladesh and China have registered a positive growth in exports to EU Countries (2.98 per cent, .52 per cent and 1.66 per cent; respectively).
The growth of readymade garments industry not only benefits the country's export; but also in the process creates millions of badly needed jobs within the country. It is reiterated that apparel sector remains the second largest creator of the employment in the country and has the capability to absorb as many farm displaced workers.
Incorporated in 1978, Apparel Export Promotion Council (AEPC) is the official body of garment exporters that provides invaluable assistance to Indian exporters as well as importers/international buyers who choose India as their preferred sourcing destination for garments. With 40 offices and 8,000 small, medium and large garment exporters across India, AEPC today has grown to become the most powerful association for promotion and facilitation of garment manufacturing and exports. With an objective of building a strong ground for the Indian exporters, AEPC is committed to provide various platforms to Indian exporters which would help in achieving growth of garment exports.
Apparel Export Promotion Council (AEPC)