India could emerge as largest apparel sourcing centre in 5 yrs

India could emerge as the largest hub for sourcing of apparel and knitwear garments in the next five years, a top official of Apparel Export Promotion Council has said.

"With China showing more interest in engineering and IT sector and Bangladesh being looked at as a non-compliant country, global players,both in traditional and non-traditional markets are eyeing India's potential for outsourcing with great interest," A Shaktivel, Chairman, AEPC, told reporters here last night.

He said India could emerge as the largest hub for sourcing of apparel and knitwear garments in another five years.

Stating that India has been at a cost disadvantage compared to Bangladesh, Vietnam and others, he said this year was better as non-compliance issues in Bangladesh have resulted in increased orders to India.

India, with its fairly high level of compliant garment export factories, has become an attractive sourcing destination and apparel exports in the first five months of this fiscal has shown a 14 per cent increase in Dollar terms, he said.

With this growing trend, apparel exports can easily cross the targeted 17 billion USD export this fiscal, he said, adding Tirupur, with an export turnover of between Rs 12,500- 13,000 crore last year, did business of Rs 6,500 crore till August.

Shaktivel said AEPC delegations would visit Israel, Japan and Australia to strike deals with major buyers there.

On availability of raw materials, like cotton yarn to meet the huge increasing requirements, he said there were no problem on that front though fluctuation in yarn price was a cause of concern.

"Overall it would be a good period for the apparel sector from now," Shaktivel said.