The Hindu Business Line : Knitwear sector sees higher exports in quota-free regime

THE country's knitwear sector remained confident of an improved export performance in the quota-free regime beginning next year and this sector would also stand to gain more market share in the coming years, said Mr S.B. Mohapatra, Secretary, Union Ministry of Textiles.

He, however, felt that if India's cotton textile exports had to improve its cost competitiveness in the world trade, the production cost of indigenous raw cotton should be less than the international prices. There was also a need to improve the social infrastructure such as roads and ports, which served to enhance the manufacturing sectors competitiveness.

Mr Mohapatra was inaugurating the 18th edition of the India Knit Fair for the spring/summer collection 2005 in this knitwear town and the fair was sponsored jointly by the India Knit Fair Association and the Apparel Export Promotion Council (AEPC).

Presiding over the function, the AEPC Chairman, Mr A. Sakthivel, said that Tirupur which could achieve a 20 per cent growth in value term in its exports during January-April 2004 expected to double its export turnover from last year's Rs 4,600 crore over the next two years considering the potential to further enlarge the volume of knitwear exports opening up. The AEPC had drawn up plans to stage `made-in-India' buyer-seller meets at Dallas and New York next month and these would be followed up with similar meet in Spain, France and the UK.

He said that the terminal year for the phase out of the agreement on textiles and clothing had already started giving signals on a bright future for India's apparel exports in the form of increased trade enquiries for import of India's knitwear.

"One of the leading US retail chains, JC Penney, has indicated that it has plans to hike its outsourcing of readymade garments from India to $700 million from its current level of $200 million in the next two/three years," he said.

Mr Sakthivel felt that the AEPC's suggestion to the Centre to accept the European Union's proposal advising India to bind its tariffs at 20 per cent could be accepted as it would benefit India in the form of an additional garment quota to the extent of 50,000 tonnes valued Rs 4,000 crore.

Later talking to press persons on the sidelines of the fair inauguration, Mr Mohapatra said the strength of India's textile sector backed up by the vast raw material base and manufacturing skills would make it unswerving on its advocacy for a lower import tariff regime as it can continue to wield its competitive edge in the world textile trade.

"Right now, the broader objective for India in the market access negotiations is to move towards a lower tariff levels and possibly the next stage can be towards seeking a `0' duty," Mr Mohapatra said .

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