China moving out of apparel sector presents Apparel exporters huge opportunity : Niti Aayog CEO

Posted by Daily Shipping Times on 26-02-2018        Tweet

GURGAON: At a 40th year celebration of Apparel Export Promotion Council (AEPC) at AEPC Head office in Gurgaon Mr. Amitabh Kant CEO, NITI Aayog said, “China has started moving out of the apparel sector and there is a huge opportunity for India. Today the wages in China are 2‐3 times that of India and given the aging population of China, the cost of apparel manufacturing will continue to rise there. In such a scenario, the global suppliers will start looking at other avenues for sourcing. Countries like Bangladesh and Vietnam are having preferential access in European Markets and hence it is extremely important that we get the FTA with Europe ratified at the earliest. As far as Indian apparel exports are concerned, India is heavily reliant on cotton and we need to see how we can move to man‐made fibres. There has been a reduction in the benefits of the Industry post GST rollout and we are looking at ways through which we could bring it at par with the rates prevalent in the previous regime. For the benefit of the Industry Central and State levies should be refunded and Government will work with The Industry to resolve this issue.” He has also mentioned that at the immediate phase to create positive signs it is important to resolve the issues viz. blocked taxes and refund of GST, and exchange rate related concerns to bring back the apparel export and manufacturing sector in a growth path from consistent decline trends.

Speaking on the occasion Mr. HKL Magu, Chairman, AEPC said, “AEPC’s well‐timed initiatives and confidence to take calculated risks, braving all odds, perceptible across all circumstances, is the key fuel for the India's apparel export growth.