Hindu Business Line
NEW DELHI: Apparel exporters have virtually run out of orders from their US and European clients as the demand for the Indian clothing has dried up in the recession-hit Western markets.
“For April-June (2014-10), there are virtually no orders for apparels from the US and European markets,” Chairman of Apparel Export Promotion Council (AEPC) Mr Rakesh Vaid said.
The US and Europe collectively account for 70 per cent of India’s garment exports, which are close to$10 billion. Though exports declined since September itself, the annualised trend for 2014-09 has been estimated to remain almost at the same level – at $9.69 billion – as in the previous year.
However, the going seems tough for the current fiscal, Mr Vaid said. Faced with a tough going in the western markets, Indian exporters would set sail for new apparel destinations in Japan, Australia, South Africa and Brazil, which have remained untapped so far.
India’s share in the Japanese $22.6-billion garment market is less than half a per cent, while in Australia’s$3.38-billion market, the share is only 1.22 per cent. Estimates suggest that the garment industry employs seven million people, including 3.9 mi llion in the export sector.- PTI
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