Apparels exporters told to tap US, EU markets

Indian apparels exporters must look at grabbing a major chunk of the additional potential in the US and the European Union markets which are estimated at $22 billion and $26 billion respectively by 2006, said T C Venkat Subramaniam, chairman and managing director of EXIM Bank.

He was delivering his key note address on 'Sustainable Global Competitiveness of Textile Industry' at the CompTex 2005. The two-day CompTex 2005, being organised by the Confederation of Indian Industry (CII) and Southern India Mills Association of India (SIMA), kicked off in Coimbatore on Friday.

Of the global garment exports that are estimated at $225 billion, India's share is just three per cent while China accounts for 23 per cent.

Subramaniam said that with the phasing out of the multi-fibre agreement (MFA) from January 1, 2005, India must increase its market share in the global garment exports by making inroads into the 37 per cent contributed by countries like Sri Lanka, Bangladesh and sub-Saharan African countries.

"These countries gained their share due to quotas under the preferential trade agreements with the US and the EU. Countries like China, India, Pakistan, Taiwan, Indonesia, Hong Kong and Egypt will be potential gainers in the post-MFA regime," he said.

The key factors that will determine India's success will depend on resource-based advantages such as fibre base, productivity and capacity-based advantages.

Strategic advantages will involve design skills, professionalism, good supply chain management, and in terms of cost advantages, reduction of cost of production by ensuring lower labour and power cost.

In his address 'Innovation "� Key to Global Competition', Vijay Venkataswamy, chairman of SIMA, and managing director of Vantex Limited, said that textile exporters will have to benchmark themselves with global players by ensuring continuance of innovation of products and reducing cost.

Textile exporters will have to build on core strength and will have to focus on acquisition and retention of customers.