Apparel sector roadshows to draw FDI

In a bid to attract foreign direct investment (FDI), the domestic apparel sector is planning to come up with roadshows abroad.

Vijay Agarwal, chairman of Apparel Export Promotion Council (AEPC), said the Rs 20,000 crore domestic apparel industry needed FDI to the tune of Rs 30,000 crore in three years in order to compete with the growing textile industry in China.

Apparel exports surged to approximately Rs 36,000 crore last year from $27,000 crore in 2004. But, the country could draw a measly $2.5 billion FDI compared with China's $23 billion.

Given the advantages in terms of labour, unique design skills, high degree of numerical aptitude and innate capacity to adapt, the domestic apparel industry could easily achieve exports of $25 billion by 2010, he said.

Agarwal also emphasised that some obstacles must be eliminated immediately.

"Economies of scale, antique labour laws, a high transaction cost, poor infrastructure, illogical policies and high interest rates are a few hurdles that need to be removed immediately to bring the domestic apparel industry on the world radar," he said.

Agarwal, who also heads the Creative group as its chairman, said the role of AEPC "� responsible for the promotion of exports of readymade garments "� had changed from mere quota disbursement to bringing in FDI.

The biggest challenge the industry faced today was stiff competition from neighbouring countries like Pakistan, Bangladesh and China, he added.

Since the removal of quota, prices have come down dramatically. Consequently, the domestic market has started to bag a slew of orders at lower price levels with commitment to quality and delivery.