With demand dwindling from the US and European markets, the Apparel Export Promotion Council (AEPC) is making all efforts to find newer regions for Indian garment exports.
After South Africa and South American countries, the apparel exporters' body is taking a 25 exporters strong delegation to visit Israel.
"This visit to Israel is part of our efforts to find newer markets in recent times for apparel exports. We have Israel and South Africa as some of our potential clients which Indian garment exporters can leverage," said A Sakthivel, chairman, AEPC, adding that more such visits of Indian apparel exporters' delegation are planned in the coming months.
One of the reasons is also a 17 per cent dip in overall apparel exports of India for the months of April to July as against the corresponding period last year. Among that, garment exports to US and Europe have been slipping further.
"The impact is more due to dip in export demand from the US and European markets. While efforts are being made to tap newer markets, the results may not be seen overnight. Initially, buyers in the newer markets would want to test us out," said Rahul Mehta, president of Clothing Manufacturers Association of India (CMAI).
In the month of June alone, India's garment exports declined from $ 1.2 billion for June last year to $ 1.1 billion this year. Annually, India's garment exports is estimated at around $ 14 billion.
According to Prashant Agarwal, joint managing director of apparel consulting firm Wazir Advisors Pvt. Ltd., the US and Europe together account for about 70 per cent of India's total garment exports.
However, as compared to its competitors like Vietnam and Bangladesh that peg a double digit compounded annual growth rate (CAGR) in apparel exports, India registered only two per cent in last five years.
"India's competitors are growing faster in terms of apparel exports. This explains why India needs to diversify its apparel exports reach and look for new markets. India could look at markets like Japan, Canada, Israel, South Africa, Russia and Australia for spreading its apparel exports beyond the US and Europe," said Agarwal.
The five markets of Japan, South Africa, Israel, Russia and Australia alone have an apparel export potential of $ 70-80 billion for India, Agarwal added.
