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Home / Interviews / Face2Face

Interview with Ashok Rajani

Face2Face

Ashok Rajani
Chairman
AEPC

The growing domestic apparel market is an opportunity for Indian manufacturers

Incorporated in 1978, Apparel Export Promotion Council (AEPC) is the official body of apparel exporters in India that provides assistance to Indian exporters and importers who choose India as their preferred sourcing destination for garments. Ashok Rajani, Chairman, AEPC talks about factors impacting Indian apparel exports and shares his expectations from the budget.

What is the size of the textile industry in India? What percentage does apparel industry claim in it?

The size of textile industry of India is estimated about USD 118 billion, out of which apparel claims USD 73 billion. The domestic industry has market size of USD 56 billion and exports USD 17 billion.

At what rate is the apparel sector growing? What is driving this growth?

The global apparel markets have been stagnant since 2015. For India, the growth in 2015-16 was a nominal 0.2 per cent and in 2016-17 it is expected to be similarly modest. However, India's domestic market is growing, which is an opportunity for the apparel manufacturers.

Can you please share details of apparel exports of India for the year 2016? Which new regions have Indian textile manufacturers touched base last year?

India's apparel exports to world have declined 0.2 per cent for the period of April-December 2016 due the decrease in import from its major markets like US and UAE. India's apparel exports has shown a good growth in non-traditional markets like Russia, Oman, Tanzania, Argentina, Iran, Qatar etc.

Which textile products are faring well in the exports market?

In the current financial year 2016-17 products like babywear, men's trousers, men's shirts etc are faring well in exports.

Which three factors will have a huge influence on the Indian apparel export sector in 2017?

The following three factors will have a huge influence on Indian apparel export:

The revival of the EU, USA and UAE markets – the top three markets for India is critical for export enhancement.

The continuation of Merchandise Exports from India Scheme (MEIS) and effective roll out of the Special package will be critical as these are biggest support that the industry has presently.

Besides this, bilateral trade agreement with UK, post Brexit, and India- EU FTA can be huge positive influences on apparel export

Will the cashless economy help make the Indian textile industry more organised as a sector?

The export sector has been organised but yes, the outsourcing and downstream industries will have to re-organise as the economy becomes cashless. We are monitoring the transition carefully, as it is a huge industry with large downstream segments which need time for this readjustment.

Published on: 18/01/2017

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.