The Apparel Export Promotion Council (AEPC) has expressed enthusiasm regarding the proposed free trade agreement between the United Kingdom and the European Union, stating that it will be a game changer for the domestic industry. AEPC Chairman Naren Goenka emphasized the significant advantages the agreement would offer apparel exporters.
Regarding the ongoing negotiations, Goenka mentioned that talks with the UK are in the final stages, while discussions with the EU are progressing rapidly. He underscored the potential benefits of signing an FTA deal with both parties, asserting that the EU would provide a substantial advantage to Indian apparel exports.
To address the issue of the poor export competitiveness of Indian apparel, Goenka identified two main factors: poor economies of scale and the absence of vertically integrated units compared to competing countries like Vietnam. He stated that most Indian apparel manufacturing units have an average of 250-400 machines, whereas rival nations boast an average of 800-1000. This disparity limits the industry’s capacity to invest in productivity-enhancing technologies.
Goenka conveyed these remarks while speaking at the AEPC exports awards ceremony on December 8. He also praised trade pacts with the UAE, Australia, and Japan, noting that they have provided market access opportunities for the sector.
