Garment exports from India have risen strongly in this fiscal year so far on the back of strong price competitiveness and successful penetration into new markets. During April-September 2013, India’s apparel export revenues were recorded at US$ 7.9 billion, a growth of 13 per cent year-on-year. During October, India’s garment exports reached US$ 1.19 billion, increasing by 31 per cent year-on-year. Export figures have been trending upwards for most of India’s major markets. Exports to the Eurozone have appreciated by 14 per cent whilst exports to the US, West Asia and Japan have also increased. Besides, Indian garment players have also successfully explored the potential in markets like Latin America, Australia and Russia.
The garment industry in India is largely dominated by SMEs, which have a significant competitive advantage when it comes to flexibility in serving smaller order quantities with lower turnaround times, which is the emergent norm in today’s fashion industry. A number of prominent brands like Zara, Gap, H & M, Mango, Elcorte, Desigual and Tommy Hilfiger have ramped up their sourcing from India over the years. Projections by Technopak Advisors indicate that the country has the potential to increase its share in global textile and apparel trade from 4.5 per cent to 8 per cent, with exports expected to reach US$ 80 billion by 2020. With the impetus being given to build on India’s competitive advantages and penetrate new export markets, the industry stands to gain significantly in the coming years.