The Hindu Business Line : Garment exports to quota countries up

THE country's export of readymade garments to quota restricted countries during the first four months of the current fiscal registered an 8 per cent growth in volume and 12 per cent growth in value in dollar terms, compared to the corresponding period last fiscal.

According to data compiled by the Apparel Export Promotion Council (AEPC) here, exports of garments to quota countries during April to July 2004-05 amounted to 422.7 million pieces valued at $1,728.6 million, compared to the corresponding period last fiscal, at an increase of 7.67 per cent in terms of quantity and 11.71 per cent in terms of value.

Exports to the US, the biggest market for Indian garments, during this period were 158.3 million pieces, valued at $765.7 million, an increase of 15.21 per cent in terms of volume and 12.52 per cent in terms of value compared to the previous corresponding period.

Exports to the European Union amounted to 245.8 million pieces valued at $902.2 million, showing an increase of a modest 4.29 per cent in terms of volume but a robust 12.28 per cent in terms of value.

Exports to Canada during April-July 2004 amounted to 18.8 million pieces valued at $60.7 million, showing a decrease of 4.57 per cent in terms of volume and 4.26 per cent in terms of value compared to the corresponding period in 2003.

AEPC said the data of exports to outside bilateral area countries have not been taken into account due to non-availability of data. With the phase-out of the quota regime imminent by the end of this calendar year, the apparel sector in the country has to compete with exporters from not only the South-East Asian countries (which have carved a niche for themselves in the western markets) but also from Pakistan, Sri Lanka and Bangladesh, industry sources told Business Line here.

Sources also said with the international big retail industry interested in sourcing their wares from India due to cost competitiveness, the industry is suffering from lack of economies of scale, as domestic garmenting units are not organised enough to enable supply of huge orders through a single source.

The industry expects the Government to announce promotional measures in the forthcoming export-import policy to enable it to source raw materials and other inputs at international prices so that value addition can take place domestically as the country enjoys a good reputation in designing garments. The garment exporters expect working capital including foreign loan at inexpensive interest rates. They also want authorities to ensure that the rupee does not appreciate markedly so that it does not eat into their margins over short to medium-term.

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