Garment exporters see potential in US market

With China showing a declining trend in apparel exports, India has substantial potential to expand its share in the global market, especially the US, according to garment exporters.

Prabhu Dhamodharan, convenor of Indian Texpreneurs Federation, said international buyers started shifting sourcing of garments from China a year or so back and these orders are moving to Vietnam, Bangladesh, India, etc. However, now, it is evident that several enquiries are moving out of China. “Nearly 80 % of garment exporters in Tiruppur focus on Europe. They need to use the opportunity in the US as there is a level-playing field there,” he said.

“Due to Covid implications, the overall US apparel imports dropped 30% in the first seven months of 2020; while their import of Chinese apparel dropped 49 %. Moreover, the news about recent US actions in terms of trade restrictions on Chinese apparel and other products from one of the major textile regions - Xinjiang - leads to a notion that it will accelerate the trend further,” he said.

This trend is likely to create a $10 billion opportunity in the US market in the apparel segment for other countries, including India. He urged the exporters to make use of the opportunity. “We should capture orders for $ two billion to $ three billion in a year. Awareness among exporters should improve on the potential available,” he said.

Indian home textiles is a success story in the US. Garment manufacturers are facing increasing price pressure in the international market. They should start looking at future risks and opportunities. The US is a potential market as the buyers are looking for alternative sourcing destinations and US imports from China are declining, Mr. Dhamodharan said.

Raja Shanmugham, president of Tiruppur Exporters’ Association, added that enquiries received by garment exporters in India are encouraging and there is huge potential because of the anti-China sentiments among global buyers. Indian exporters need to create confidence among the international buyers on quality, timely delivery and consistency in the quantity shipped. The government and the industry should work together to upskill the existing workforce and to improve quality. “If we work on these, we have a bright change to improve apparel exports to all destinations,” he said.