Textile exports may pick up in the next four months, as industry players seek opportunities in new markets such as South Africa, South America, Japan, New Zealand and Australia. A slight improvement in demand from traditional markets such as the US and Europe is also expected to help the ailing sector.
“We have received several order queries, and the market will pick up in another four months when production starts,” Federation of Indian Export Organisation president A Sakthivel said.
Moving away from high dependence on their traditional markets, textile and apparel exporters are keen on exploring new markets. “Although the order book looks grim currently with demand slump in the US and Europe, we are encouraging players to explore new markets. It will take time but we may capture a significant market share,” Apparel Export Promotion Council executive committee member Hari Kapoor said.
The council has already received financial aid to the tune of Rs 2.5 crore under the government’s export development fund to explore Japan. Currently, the Japanese market is dominated by China with close to 70% market share. However, with the economic slowdown impacting China’s production, Indian exporters are hopeful of making a headway in the Japanese market.
Similarly, exporters are now looking at untapped markets such as South America, South Africa, New Zealand and Australia. Indian exporters have already seen great interest among South African buyers but face stiff competition from cheaper Chinese imports.
Confederation of Indian Textile Industry secretary general DK Nair said the industry is hopeful of achieving a 5% growth in 2009-10. India’s textile exports declined 2% in 2008-09 to reach $21.75 billion due to a slump in global demand. A ministry official said the government is hopeful that the textile industry will record an 8-10% growth this year.
